Bitcoin Transaction Drought: Speculative Frenzy Ends as Activity Crashes 50%

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Bitcoin’s transaction volume has collapsed to 18-month lows, marking the end of an experimental phase that saw the network processing over 700,000 daily transactions at its peak.

Current figures hover around 350,000 – barely half of mid-2024 levels when Bitcoin-native protocols briefly captured crypto market attention.

The decline reflects shifting market dynamics as traders abandon Bitcoin’s limited smart contract capabilities for more flexible alternatives. Runes and Ordinals, which once promised to bring Ethereum-like functionality to Bitcoin, have seen interest evaporate alongside their transaction-boosting effects.

With fees remaining depressed below $1.50, analysts suggest the network is undergoing a fundamental reversion to its original purpose as digital gold rather than a platform for financial experimentation.