Bitcoin Network Activity Hits One-Year Low Amid Runes Protocol Decrease, Yet Long-term HODL Addresses Surge

On February 7th, COINOTAG reported a notable decline in the **Bitcoin Network Activity Index**, which has fallen to **3760**, representing a significant **15% drop** from its historical peak in November 2024. This figure marks a one-year low for Bitcoin’s network metrics, which encompass elements such as the **number of active addresses**, transaction activities, block sizes, and transaction fees. Daily transaction volume has also seen a sharp reduction, declining from **734,000 to 346,000 transactions**, indicating a stark **53% decrease**.

Moreover, the situation further deteriorated with the number of unconfirmed transactions in Bitcoin’s mempool plummeting from **287,000 in December 2024** to just **3,000** – almost a **99% decrease**, the lowest since March 2022. The analysis attributes this downturn primarily to a rapid decline in the utilization of the **Runes Protocol**, with daily engagement dropping from **802,000 in April 2024** to merely **10,000** today. Nevertheless, analysts at CryptoQuant assert that this dwindling network activity might not correlate directly with price fluctuations in Bitcoin. Notably, the rise in **long-term HODL addresses** suggests a growing market sentiment recognizing Bitcoin’s role as a key **investment asset** and **store of value**.