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.
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