Bitcoin Network Activity Drops to Yearly Low. What Has Changed

RBK-cryptoPublished on 2025-12-16Last updated on 2025-12-16

Abstract

Bitcoin network activity has dropped to its lowest level of the year, with the 7-day moving average of active addresses falling to 660,000. This decline is attributed to reduced activity following the peak in December 2024, which was driven by Ordinals and Runes protocols. These technologies, used for creating and trading on the Bitcoin blockchain, have shifted transaction dynamics, now accounting for most transactions but contributing only 5-10% of total fee revenue. This shift has negatively impacted miner economics. Daily miner revenue has decreased from around $50 million in Q3 to approximately $40 million, with fees making up a smaller portion of earnings (0.65% in December compared to 2.73% a year ago). Average transaction fees have also fallen to $0.48, down from $3.7 a year earlier. With block subsidies continuing to halve (currently 3.125 BTC per block until spring 2028), miner profitability is increasingly dependent on transaction fees. Fred Thiel, CEO of MARA Holdings, warned that without Bitcoin appreciating by at least 50% annually or a significant rise in network fees, traditional mining could become unprofitable in the coming years.

The number of active addresses on the Bitcoin network is currently at its lowest level of the year, noted The Block. A decline in metrics is also observed in other network indicators.

The seven-day moving average of the number of active addresses has dropped to 660,000. This is the lowest value since December 2024, when the network experienced a peak in activity related to Ordinals and Runes technologies, writes the publication. Similar NFT "Ordinals" are a method of recording data, such as images or text, directly onto individual satoshis (parts of a bitcoin), and "Runes" is a simplified protocol for issuing and trading NFTs on the Bitcoin network.

After the emergence of "Runes," the transaction structure on the Bitcoin network changed. NFT transactions now make up the majority of the total number of transactions but contribute only 5–10% of the total fee revenue.

A miner's reward consists of two parts: a subsidy for adding a new block and fees from transactions included in that block. The increase in the share of NFT transactions and the decrease in network activity have had a negative impact on mining economics.

The daily revenue of miners has decreased from an average of $50 million in the third quarter to about $40 million by the end of the year, and this revenue is almost entirely composed of block subsidies, not transaction fees. Last December, fees accounted for 2.73% of a miner's revenue, while this year it is 0.65%.

The average transaction fee on the Bitcoin network dropped to $0.48 in December. A year ago, this figure reached $3.7. Since the subsidies paid to miners for blocks continue to decrease with each halving (until spring 2028 it is 3.125 BTC per block), miners' income will increasingly depend on transaction fees.

In November, Fred Thiel, head of the largest American miner MARA Holdings, stated that the traditional Bitcoin mining model will become unprofitable in the coming years if the first cryptocurrency does not appreciate at a rate of at least 50% per year and network fees remain at the same level.

Coins of the year. How and why the Solana cryptocurrency soared and fell

MetaMask crypto wallet added Bitcoin support

The Bitcoin price fell by almost $5 thousand in a day. What happened in the crypto market

Related Questions

QWhat has dropped to its lowest level in the Bitcoin network according to the article?

AThe number of active addresses in the Bitcoin network has dropped to its lowest level of the year.

QWhat two technologies were responsible for the peak in network activity in December 2024?

AThe peak in network activity in December 2024 was related to the Ordinals and Runes technologies.

QWhat is the main negative impact on mining economics mentioned in the text?

AThe increase in the share of NFT transactions and the decrease in overall network activity have had a negative impact on mining economics.

QHow much did the average Bitcoin transaction fee drop to in December, compared to a year ago?

AThe average Bitcoin transaction fee dropped to $0.48 in December, compared to $3.7 a year ago.

QWhat did the head of MARA Holdings say about the profitability of the traditional Bitcoin mining model?

AThe head of MARA Holdings, Fred Thiel, stated that the traditional Bitcoin mining model will become unprofitable in the coming years if the price of Bitcoin does not appreciate by at least 50% per year and network fees remain at their current level.

Related Reads

Fu Peng's First Public Speech in 2026: What Exactly Are Crypto Assets? Why Did I Join the Crypto Asset Industry?

Fu Peng, a renowned macroeconomist and now Chief Economist at New火 Group, delivered his first public speech of 2026 at the Hong Kong Web3 Festival. He explained his perspective on crypto assets and why he joined the industry, framing it within the context of macroeconomic trends and financial evolution. Fu emphasized that crypto assets are transitioning from an early, belief-driven phase to a mature, institutionally integrated asset class. He drew parallels to the 1970s-80s, when technological advances (like computing) revolutionized traditional finance, leading to the rise of FICC (Fixed Income, Currencies, and Commodities). Similarly, current advancements in AI, data, and blockchain are reshaping finance, with crypto assets becoming part of a new "FICC + C" (C for Crypto) framework. He noted that institutional capital, including traditional hedge funds, avoided early crypto due to its speculative nature but are now engaging as regulatory clarity emerges (e.g., stablecoin laws, CFTC classifying crypto as a commodity). Fu predicted that 2025-2026 marks a turning point where crypto becomes a standardized, financially viable asset for diversified portfolios, akin to commodities or derivatives in traditional finance. Fu defined Bitcoin not as "digital gold" in a simplistic sense but as a value-preserving, financially tradable asset. He highlighted that crypto's future lies in regulated, institutional adoption, moving away from retail-dominated trading. His entry into crypto signals this maturation, where traditional finance integrates crypto into mainstream asset management.

marsbit35m ago

Fu Peng's First Public Speech in 2026: What Exactly Are Crypto Assets? Why Did I Join the Crypto Asset Industry?

marsbit35m ago

Cardano Gets Filecoin-Backed Storage Upgrade

Cardano's ecosystem has integrated a significant storage upgrade through a collaboration between Blockfrost and Filecoin. This new premium storage tier offers Cardano builders a decentralized, verifiable backup solution without requiring any changes to their existing workflows. The integration, which was initially announced in late 2024, has now been productized, providing enhanced data resilience for applications on Cardano. Charles Hoskinson endorsed the move, welcoming Filecoin as "one of the OGs" to the ecosystem. The service leverages Filecoin's decentralized storage network to strengthen app reliability and underscores a commitment to decentralization by coordinating two major layer-1 blockchain ecosystems.

bitcoinist43m ago

Cardano Gets Filecoin-Backed Storage Upgrade

bitcoinist43m ago

Justin Sun Sues Trump Family: What $75 Million Bought Was Only a Blacklist

Justin Sun, founder of Tron, has filed a lawsuit in federal court against World Liberty Financial (WLF), alleging he was made the "primary target of a fraudulent scheme" after investing $75 million. Sun claims the investment secured him an advisor title and WLFI tokens, which were later frozen by WLF, causing "hundreds of millions in losses." The dispute began in late 2024 when Sun's investment helped revive WLF's struggling token sale, which ultimately raised $550 million. Shortly after, the SEC dropped its lawsuit against Sun following Donald Trump's inauguration. However, relations soured when Sun refused WLF's demands for additional funding. In August 2025, WLF added a "blacklist" function to its smart contract, allowing it to unilaterally freeze tokens. Sun's holdings, worth approximately $107 million, were frozen, and he was threatened with token destruction. The lawsuit highlights WLF's structure, which directs 75% of token sale profits to the Trump family, who had earned $1 billion by December 2025. WLF's CEO is Zach Witkoff, son of U.S. Middle East envoy Steve Witkoff. The project faces scrutiny for opaque operations, including a controversial loan arrangement on the Dolomite platform, co-founded by a WLF advisor. Despite Sun's history with the SEC, the case underscores centralization risks within DeFi, as WLF controls governance and holds powers to freeze assets arbitrarily. Sun's tokens remain frozen as legal proceedings begin.

marsbit43m ago

Justin Sun Sues Trump Family: What $75 Million Bought Was Only a Blacklist

marsbit43m ago

$500 to Buy OpenAI Stock: Silicon Valley's Most Respectable Liquidity Invitation

Silicon Valley's largest venture capital platform, AngelList, has launched a new fund called USVC, allowing U.S. retail investors to buy into high-profile AI companies like OpenAI, Anthropic, and xAI with a minimum investment of $500—no accredited investor status required. Promoted by AngelList co-founder Naval Ravikant, the fund is framed as an opportunity for ordinary people to access high-growth private tech investments traditionally reserved for VCs. However, critics argue it functions more like an exit vehicle for early insiders. USVC acquires shares not through primary rounds but largely via secondary transactions—purchasing stakes from early investors, VC funds, and employees looking to cash out at peak valuations. With companies like xAI heavily weighted in the portfolio, the fund effectively channels retail money into providing liquidity for insiders who entered at much lower valuations. The fund’s structure raises concerns: shares are illiquid, with no secondary market, and buybacks are limited and discretionary. The actual annual fee reaches 3.61%, far above the advertised 1% management fee. This model parallels the "low float, high fully diluted valuation" strategy seen in crypto, where early investors profit by selling to latecomers at inflated prices. The timing—alongside similar moves by platforms like Robinhood—suggests that Silicon Valley’s sudden interest in retail inclusion may be less about democratizing access and more about securing exits for insiders.

marsbit1h ago

$500 to Buy OpenAI Stock: Silicon Valley's Most Respectable Liquidity Invitation

marsbit1h ago

Bitcoin Approaches $80,000 Mark, ETF Funds Continue Inflow, Is the Crypto Market Shifting?

Bitcoin is approaching the $80,000 mark, reaching a new high since February, while Ethereum remains around $2,400 with some altcoins surging significantly. Over the past 24 hours, $462 million in futures contracts were liquidated, with shorts accounting for $353 million. The market fear and greed index has risen to 60, indicating neutral sentiment. Global risk assets continue to rebound, with U.S. stock markets hitting record highs. The S&P 500, Nasdaq, and Dow Jones all saw gains. Meanwhile, the U.S. dollar index remains stable around 98.61. Geopolitical developments, including a temporary extension of the U.S.-Iran ceasefire, have influenced market dynamics, though tensions persist. Bitcoin spot ETFs have seen six consecutive days of net inflows, with a peak single-day inflow of $663.91 million. Ethereum spot ETFs also recorded nine straight days of net inflows. Stablecoin market capitalization has risen to $320.6 billion, with a weekly net inflow of $635 million. Market analysts note that Bitcoin's recovery is supported by renewed spot demand and ETF inflows. However, high realized profits and low volatility suggest caution, with resistance expected near $80,000. Institutional and ETF-driven demand is strengthening market support, indicating a potential shift toward a new trading range with increased upward momentum.

marsbit1h ago

Bitcoin Approaches $80,000 Mark, ETF Funds Continue Inflow, Is the Crypto Market Shifting?

marsbit1h ago

Trading

Spot
Futures

Hot Articles

What is $BITCOIN

DIGITAL GOLD ($BITCOIN): A Comprehensive Analysis Introduction to DIGITAL GOLD ($BITCOIN) DIGITAL GOLD ($BITCOIN) is a blockchain-based project operating on the Solana network, which aims to combine the characteristics of traditional precious metals with the innovation of decentralized technologies. While it shares a name with Bitcoin, often referred to as “digital gold” due to its perception as a store of value, DIGITAL GOLD is a separate token designed to create a unique ecosystem within the Web3 landscape. Its goal is to position itself as a viable alternative digital asset, although specifics regarding its applications and functionalities are still developing. What is DIGITAL GOLD ($BITCOIN)? DIGITAL GOLD ($BITCOIN) is a cryptocurrency token explicitly designed for use on the Solana blockchain. In contrast to Bitcoin, which provides a widely recognized value storage role, this token appears to focus on broader applications and characteristics. Notable aspects include: Blockchain Infrastructure: The token is built on the Solana blockchain, known for its capacity to handle high-speed and low-cost transactions. Supply Dynamics: DIGITAL GOLD has a maximum supply capped at 100 quadrillion tokens (100P $BITCOIN), although details regarding its circulating supply are currently undisclosed. Utility: While precise functionalities are not explicitly outlined, there are indications that the token could be utilized for various applications, potentially involving decentralized applications (dApps) or asset tokenization strategies. Who is the Creator of DIGITAL GOLD ($BITCOIN)? At present, the identity of the creators and development team behind DIGITAL GOLD ($BITCOIN) remains unknown. This situation is typical among many innovative projects within the blockchain space, particularly those aligning with decentralized finance and meme coin phenomena. While such anonymity may foster a community-driven culture, it intensifies concerns about governance and accountability. Who are the Investors of DIGITAL GOLD ($BITCOIN)? The available information indicates that DIGITAL GOLD ($BITCOIN) does not have any known institutional backers or prominent venture capital investments. The project seems to operate on a peer-to-peer model focused on community support and adoption rather than traditional funding routes. Its activity and liquidity are primarily situated on decentralized exchanges (DEXs), such as PumpSwap, rather than established centralized trading platforms, further highlighting its grassroots approach. How DIGITAL GOLD ($BITCOIN) Works The operational mechanics of DIGITAL GOLD ($BITCOIN) can be elaborated on based on its blockchain design and network attributes: Consensus Mechanism: By leveraging Solana’s unique proof-of-history (PoH) combined with a proof-of-stake (PoS) model, the project ensures efficient transaction validation contributing to the network's high performance. Tokenomics: While specific deflationary mechanisms have not been extensively detailed, the vast maximum token supply implies that it may cater to microtransactions or niche use cases that are still to be defined. Interoperability: There exists the potential for integration with Solana’s broader ecosystem, including various decentralized finance (DeFi) platforms. However, the details regarding specific integrations remain unspecified. Timeline of Key Events Here is a timeline that highlights significant milestones concerning DIGITAL GOLD ($BITCOIN): 2023: The initial deployment of the token occurs on the Solana blockchain, marked by its contract address. 2024: DIGITAL GOLD gains visibility as it becomes available for trading on decentralized exchanges like PumpSwap, allowing users to trade it against SOL. 2025: The project witnesses sporadic trading activity and potential interest in community-led engagements, although no noteworthy partnerships or technical advancements have been documented as of yet. Critical Analysis Strengths Scalability: The underlying Solana infrastructure supports high transaction volumes, which could enhance the utility of $BITCOIN in various transaction scenarios. Accessibility: The potential low trading price per token could attract retail investors, facilitating wider participation due to fractional ownership opportunities. Risks Lack of Transparency: The absence of publicly known backers, developers, or an audit process may yield skepticism regarding the project's sustainability and trustworthiness. Market Volatility: The trading activity is heavily reliant on speculative behavior, which can result in significant price volatility and uncertainty for investors. Conclusion DIGITAL GOLD ($BITCOIN) emerges as an intriguing yet ambiguous project within the rapidly evolving Solana ecosystem. While it attempts to leverage the “digital gold” narrative, its departure from Bitcoin's established role as a store of value underscores the need for a clearer differentiation of its intended utility and governance structure. Future acceptance and adoption will likely depend on addressing the current opacity and defining its operational and economic strategies more explicitly. Note: This report encompasses synthesised information available as of October 2023, and developments may have transpired beyond the research period.

363 Total ViewsPublished 2025.05.13Updated 2025.05.13

What is $BITCOIN

Discussions

Welcome to the HTX Community. Here, you can stay informed about the latest platform developments and gain access to professional market insights. Users' opinions on the price of BTC (BTC) are presented below.

活动图片

Top Questions