Bitcoin’s price action exceeds the $100,000 threshold, at $111,700 within the highest ever distance, but its on-chain activity shows a completely different story. Bitcoin prices are being pushed to new heights, but the underlying blockchain metrics have slipped in, according to a new report from on-chain analytics firm GlassNode. More generally territory It is associated with the market stage of bears.
Quiet blockchain activity despite the strength of the price
According to Reports viewed Bitcoin, a variety of on-chain metrics from on-chain analytics company GlassNode, is primarily emphasized by quiet blockchain activities despite its current price exceeding $100,000. For example, daily transactions have dropped from the peak above 730,000 in 2024 to the 320,000-500,000 range. This is a significant reduction in throughput. Networks that operate in bullish price environments.
The slowdown in daily Bitcoin transactions is primarily linked to a corresponding decline in non-financial activities such as inscriptions and runes that previously contributed to transaction spikes. Although the actual value transfer in financial transactions is relatively stable, overall, the decline in network usage is not the case. Created a prominent divergence The highest previous all-time gatherings usually involved an increase in transactions in the chain.
Transaction counts are decreasing, but the bitcoin blockchain is A huge amount of calm Transactions on the chain. The daily average for this cycle was around $7.5 billion, reaching $16 billion in the second half of 2024 during the first rally, exceeding $100,000. However, the nature of these transactions has shifted from the hands of retailers. The average volume per transaction is just above $36,000. This means that players from large institutions and large individuals have become major users of the Bitcoin network.
Retail-sized transactions (transactions under $100,000) are watching Relative share of total volume It’s going down on a massive scale. For example, transactions ranging from $0 to $1,000 account for less than 1% of the total transferred amount from about 4% at the start of this cycle.
Rates pressure drops while off-chain trading becomes dominant
GlassNode’s report highlights how Bitcoin has been kept down even when it trades at the highest price ever. Average miner revenue from transaction fees fell to just $558,000 per day. The decline is partly due to technical improvements such as SEGWIT and transaction batches, but a significant decrease in mining revenue indicates a significant drop in block space demand and an overall decrease in transaction numbers.
on the other hand, Trading activities have shifted to centralized exchanges, particularly centralized venues. In many cases, spot volumes exceed $10 billion per day, but the futures market averages average daily volume at around $57 billion, peaking at over $120 billion. The options market is also growing, and now processes more than $2.4 billion a day. Overall, these off-chain platforms handle 7-16 times more volume than those that have been resolved directly to the Bitcoin blockchain.
In conclusion, the GlassNode report shows the changing dynamics of the Bitcoin ecosystem and how it is slowly tilting Towards large institutions More than retailers. At the time of writing, Bitcoin is trading for $103,470 2% down In the last 24 hours.
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