Bitcoin Transaction Volumes Drop 50% as NFT Interest Fades

Bitcoin's transaction volumes have reached an 18-month low, influenced by dwindling interest in Bitcoin-native NFTs. This drop occurred as daily transactions fell to a low, with volumes now showing mild recovery. The decreased transaction volume signals shifting trends as Bitcoin’s use moves away from NFT-driven protocols, affecting network dynamics and developer interests. The Bitcoin Core development community and influential figures are witnessing a notable shift as daily transactions dropped by approximately 50%. While experts monitor the situation, no official comments have been reported.

Immediate impacts include reduced interest in using Bitcoin’s network for NFT and token projects. Transaction fees remain low, indicating less block space demand. This downturn underscores Bitcoin's return to traditional use rather than expansive NFT development. Financially, this trend has little impact on BTC’s price or liquidity. Low transaction fees reflect diminished network use, related to decreased NFT and token transactions following the fading excitement around Bitcoin Ordinals and Runes.

As interest declines in Bitcoin’s NFT ecosystem, some developers are migrating towards smart contract-enabled platforms like Ethereum. There’s potential for future regulatory or technological developments impacting Bitcoin as network usage evolves back to primarily financial transfers. Transactions have seen a 50% reduction from the 2024 peak, indicating a shift as usage of Bitcoin-native protocols like Ordinals and Runes has decreased. This is reflected in the drop to a 7-day moving average of around 316,000 transactions per day.

Bitcoin transaction volumes have reached an 18-month low, signaling a significant decrease in network activity. This decline is evident as daily transactions have dropped to their lowest levels in a year and a half. The recent average activity stands at a notably low figure, indicating a lack of upward momentum in the Bitcoin ecosystem. This trend is further supported by the observation that Bitcoin's weak on-chain indicators and low trading volume suggest a stagnant market environment.

The mining sector, a critical component of the Bitcoin network, is also facing challenges. Daily revenues for Bitcoin miners have plummeted to a two-month low of $34 million as of June 22, 2025. Despite this financial strain, there has been no significant forced selling by miners. This resilience can be attributed to miners' strategic decision to hold onto their Bitcoin reserves rather than sell at current prices. The hashrate, a measure of the network's computing power, has dipped by 3.5% since June 16, marking the most substantial pullback since July 2024. This decline reflects the mounting pressure on miners, who are already dealing with tighter margins following the halving event.

The lack of forced selling by miners is particularly noteworthy. Outflows from miner wallets have remained muted, dropping from 23,000 BTC per day in February to around 6,000 BTC currently. There have been no exchange transfer spikes recorded, indicating that miners are not rushing to liquidate their holdings. Even wallets tied to Satoshi-era miners, which are often seen as a bellwether for long-term sentiment, have shown minimal activity. Only 150 BTC have been sold so far in 2025, compared to nearly 10,000 BTC offloaded in 2024. This suggests that miners are adopting a long-term strategy, either anticipating a future rebound in Bitcoin prices or preferring to sustain their operations through current financial challenges.

Data also shows that miner reserves are growing. Addresses holding between 100 and 1,000 BTC, typically operated by mid-sized mining entities, have added 4,000 BTC since March. This increase has pushed balances to their highest levels since November 2024, further indicating that miners are not under immediate financial distress. The overall takeaway is that miners are playing the long game, either anticipating a rebound in Bitcoin prices or choosing to sustain their operations rather than sell at current levels. This strategic holding by miners suggests a lack of selling pressure, which could be a stabilizing factor for the Bitcoin market in the near future.