Recent data from Glassnode reveals a significant slowdown in Bitcoin's on-chain transaction count, reaching its lowest levels since late 2023, despite Bitcoin's price maintaining strength above the $105,000 threshold. This decline is primarily due to reduced usage of non-monetary transactions such as Inscriptions and Runes, which had previously driven higher network traffic.
The total daily transactions have dropped from a 2024 peak of over 734,000 to a range between 320,000 and 500,000 per day. However, while the number of transactions has decreased, the average transaction size has increased sharply, with high-value transfers dominating network volume. Large holders, including institutions and high-net-worth individuals, now account for approximately 89% of transaction volume with transfers above $100,000, a substantial rise from 66% in 2022.
On-chain daily settlement volume averages $7.5 billion, with a record peak of $16 billion during the November 2024 price high. Despite this, miner revenue from transaction fees has fallen to roughly $500,000 daily, among the lowest levels in 18 months, due to decreased congestion and lower fee competition.
Off-chain trading activity, particularly on centralized exchanges and futures markets, has surged, with futures averaging $57 billion daily volume and peaking at $122 billion. This shift is partly attributed to the introduction of spot Bitcoin ETFs in the U.S. Stablecoins are increasingly used as collateral in derivatives markets, replacing crypto assets post-FTX collapse, suggesting maturation in crypto financial structures.
The current network behavior suggests a transition from retail-driven speculative transactions towards more efficient, high-value settlements likely dominated by institutional participants. Although quieter in terms of transaction frequency, Bitcoin continues to serve as a robust settlement layer for massive value transfers.