Bitcoin network transaction activity has experienced a significant decline, reaching its lowest point in 18 months, according to recent data from TheBlock. The 7-day average transaction volume dropped to approximately 316,000 last week, marking a substantial 70% decrease from the peak observed in mid-2024. This downturn reflects a cooling period following the intense market enthusiasm surrounding Bitcoin-native protocols such as Runes and Ordinals.
Transaction fees on the Bitcoin blockchain have stabilized, with the average cost per transaction holding steady below $1.50. This trend suggests a normalization in block space demand and reduced competition among users for transaction inclusion. The earlier surge in fees, driven by speculative activity, has now subsided, aligning with typical network usage patterns.
The initial excitement around Bitcoin-based token functionalities and NFT inscriptions, which introduced Ethereum-like capabilities to the Bitcoin ecosystem, has diminished. Market participants are increasingly favoring alternative blockchains that offer more robust native support for such innovations, leading to a shift in trading volumes and developer focus away from Bitcoin-centric protocols.