The activity on the Bitcoin blockchain has fallen considerably in recent months. Nevertheless, certain data indicate that the price of Bitcoin (BTC) can rise in the coming months. This is apparent from a recent analysis of cryptoquant.
Bitcoin network activity at low point
The Bitcoin Network Activity Index from Cryptoquant has fallen by 15% since the highlight in November 2024 and reached a level of 3,760 last Friday. This is the lowest point since February 2024. The index measures various network statistics, including the number of active addresses, transactions, block size and transaction costs.
One of the most striking decreases is visible in the number of daily transactions, which has fallen from a peak from 734,000 to only 346,000, a decrease of 53%. The volume in the Bitcoin mempool, where unconfirmed transactions are collected, has also fallen sharply. In December 2024 this was still 287,000, but last Thursday this had shrunk to just 3,000, a decrease of almost 99%.
Decreasing use of the Runes Protocol as a cause
According to Cryptoquant, the decrease in network activity is largely due to a decreasing use of the Runes Protocol. This protocol, which was launched in April 2024, makes it possible to create a kind of NFTs on the Bitcoin network.
The number of on_Return codes in transactions, which the protocol uses to register token minting and transfers, shows a strong decrease. During the peak in April 2024 this reached a highlight of 802,000 a day, but in the meantime this number has fallen to only 10,000. This decrease has a direct influence on the number of transactions and therefore on overall network activity.
Bitcoin Prize remains supported by long -term holders
Despite the decrease in network activity, this does not have to have a negative effect on the Bitcoin race. Cryptoquant notes that demand from long -term holders has actually increased. Historically, this often leads to positive price movements.
Long -term holders are addresses that hold Bitcoin for longer periods without selling. This reduces sales pressure and strengthens Bitcoin as value -proof assets. With a rising demand from this group and the recent positive price trend, the expectation that Bitcoin will be expected to rise further in the long term despite the low network activity.
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Source: https://newsbit.nl/bitcoin-netwerkactiviteit-op-dieptepunt-maar-koers-blijft-positief/
