The latest data in the chain shows that the Bitcoin network activity is weakening in the last few months, and the blockchain measuring measure has recently reached a recent low level.
Why does the Bitcoin network activity decrease?
In the recent post on the X, Cryptoquant Head of Research Julio Moreno discussed As Bitcoin observes the unusual period of low transaction activity, and Mempool is almost empty, and transactions fees have dropped to 1 sat/vb. This is the lowest level of network activity since March 2024, which indicates a significant decrease in demand for a chain.
In the context of MEMPOOL refers to a ephemeral storage location where bitcoin transactions expect. Mempool usually remains crowded during periods of increased demand for chain and network activity. However, recent data in the chain show that most transactions have been confirmed, leaving Mempool almost empty.
Source: JJCMoreno/X
Almost empty MEMPOOL is a infrequent phenomenon often associated with disappearance of chain activity or a change in market dynamics. According to Moreno, the main factor contributing to this inheritance is the disappearing emotions around the BRC-20 tokens.
Runes and the standard of BRC-20 tokens are protocols that have enabled the creation and coincide of the gel and non-fracture tokens on Bitcoin blockchain. While these protocols met with significant noise after starting, the initial excitement did not translate into enduring operate.
Source: JJCMoreno/X
However, at the top of the BRC-20 sword and madness, the number of confirmed transactions in the Bitcoin network exceeded 1.5 million milestones in one day. In particular, Pioneer Blockchain processed over 1.6 million unique transactions between the sender and recipients on April 23, 2024, along with the launch of Run Bitcoin playing a key role.
The decrease in the number of transactions has wider implications for various elements of pioneering blockchain, including miners’ revenues. Miners rely on transactions for transactions as another source of income, especially when the block prizes have been further reduced from the last event by half. Therefore, the extended period of low fees may affect the profitability of mining, potentially affecting the distribution of network abbreviations.
Implications for the price of BTC
Almost empty Mempool and low transactions are not exactly the best combinations for a positive price. In particular, low speculative interest and reduced investors’ enthusiasm may suggest, which leads to the consolidation of the Bitcoin price.
In this BTC letter, it is valued at around $ 100,450, with almost 2% inheritance in the last 24 hours. According to Coingeko, the most critical cryptocurrency has lost about 3.5% of its value in the last seven days.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
A distinguished picture created by Dall-E, chart from TradingView
