Bitcoin Transaction Volumes Hit 18-Month Low Amid Waning Interest in New Protocols

Bitcoin transaction volumes have reached an 18-month low as of June 2025, primarily due to waning interest in new native protocols such as Ordinals and Runes. These protocols, which introduced NFT-like inscriptions on satoshis and fungible tokens on Bitcoin respectively, initially sparked significant excitement and altered the network's transaction dynamics and congestion levels. However, their popularity has since decreased, leading to lower transaction fees and reduced block congestion on the Bitcoin network.

This shift has allowed Bitcoin to revert to its original role as a value settlement layer, with less speculative activity. The average transaction fees have consistently remained below $1.50, and there is less network congestion. Users are increasingly turning to alternative smart contract-capable blockchains for NFT and token activities. The decline in transaction volumes has not elicited any public comments from major leaders or regulators, and it mirrors historical patterns seen during speculative hype cycles in the cryptocurrency market.

Insights suggest that user engagement has shifted towards chains with richer token and DeFi capabilities. Bitcoin remains stable but sees decreased activity as a settlement-focused network. The decline in transaction volumes is part of a broader trend of reduced activity within the cryptocurrency ecosystem, reflecting lower transaction fees and price stagnation near $85,000, a significant pullback from the late 2024 peak of $108,000. This has led to a decrease in overall incentives for miners to stay online, resulting in a 3.5% dip in hashrate since June 16, the most significant pullback in network computing power since July 2024.

Despite the decline in mining revenue, there has been no significant wave of miner capitulation. Outflows from miner wallets have remained muted, sliding from 23,000 BTC per day in February to around 6,000 BTC currently, with no exchange transfer spikes recorded. Even wallets tied to Satoshi-era miners have barely budged, with just 150 BTC sold so far in 2025 compared to nearly 10,000 BTC offloaded in 2024. This suggests that miners are playing the long game, either anticipating a rebound or preferring to burn through cash rather than sell at current prices. Addresses holding between 100 and 1,000 BTC, typically operated by mid-sized mining entities, have added 4,000 BTC since March, pushing balances to their highest levels since November 2024.

The decline in Bitcoin transactions is also reflected in the onchain activity, which shows signs of cooling. While Bitcoin remains in the $100,000–$110,000 range, the recent activity has averaged around 18-month lows. This cooling trend is further supported by the exchange supply, which dropped over 121,000 BTC this month after a huge injection of 37,000 BTC on May 28. The exchange supply is expected to drop below 2 million by this time next month, indicating a potential shift in market dynamics.

The recent decline in Bitcoin's price and lower transaction fees have also led to a drop in miner revenues, which have slid to their lowest levels in two months. Daily mining revenue dropped to $34 million on June 22, the weakest since April and among the lowest levels over the past year. However, despite the decline in revenues, there is still no sign of forced selling, even as profitability falls. This suggests that miners are holding onto their Bitcoin, either anticipating a rebound or preferring to burn through cash rather than sell at current prices.