Bitcoin Transactions Drop 55% as Network Activity Shifts Elsewhere

Bitcoin’s network transactions have hit a 12-month low, with the 7-day moving average falling to 330,000—a steep decline from the peak of 730,000 transactions. This 55% drop signals a shift in how users engage with the network, as transactional activity moves away from speculative Bitcoin-based protocols.

Over the past month, Bitcoin transaction fees have stabilized at around $500,000, a significant cooling-off from previous surges. The downturn in network usage is particularly evident in Bitcoin’s Runes and Ordinals protocols. Initially fueling speculation, these protocols now make up only 1% of total transactions, with Runes generating less than $20,000 in fees over the last 30 days—an enormous drop from the $60 million seen on launch day.

Meanwhile, traders have gravitated toward alternative blockchains, such as Solana for memecoin trading and Base for AI agent tokens. This migration suggests that while Bitcoin remains the dominant cryptocurrency by market cap, niche markets are flourishing on other networks.

With Bitcoin’s network now primarily being used for monetary transfers, questions arise about long-term fee sustainability and protocol engagement. As block rewards diminish, the ecosystem may need fresh innovations to reignite transaction growth and maintain Bitcoin’s broader utility beyond its store-of-value role.