The latest data on the series shows that the activity of the Bitcoin network has faded over the past few months, with the Blockchain scale reach the lowest new level recently.
Why is the bitcoin network decreased?
In a new post on the X platform, Cryptoquant Julio Moreno Research discussion How Bitcoin witness an extraordinary period of low transaction activity, with almost decreased empty transaction fees and transactions to 1 SAT/VB. This is the lowest level of network activity since March 2024, indicating a noticeable decrease in the demand demand.
For context, MEMPOOL refers to a temporary storage area where it awaits the treated bitcoin transactions. Mimpol usually remains crowded during high demand periods on the chain and network activity. However, new data on the chain shows that most of the transactions have been confirmed, leaving almost an empty Mimol.
Source: JJCMoreno/X
Almost an empty Mimpol is a rare phenomenon that is often associated with relieving the chain or market dynamics. According to Mourino, the main contributor to this decline is a faded excitement about the ruins and the BRC-20 symbols.
Ronoism and the distinctive code standards BRC-20 are protocols that enabled the creation and throwing of fungal and non-violated symbols on Blockchain Bitcoin. While these protocols were met with great noise at launch, the initial excitement was not translated into continuous use.
Source: JJCMoreno/X
However, at the height of the code and the BRC-20 frenzy, through the number of confirmed transactions on the Bitcoin network of 1.5 million in one day. Specifically, the leading Blockchain was treated with more than 1.6 million unique transactions between the sender and the receptors on April 23, 2024, with the launch of the Bitcoin Rono plays a pivotal role.
The decline in the number of transactions has wider effects on different components than the leading Blockchain, including mining workers’ revenues. Miners are dependent on transactions fees as another source of income, especially as the bonuses of the mass have been reduced since the last half event. Thus, a long period of low fees can affect the profitability of mining, which may affect the distribution of the network fragmentation rate.
The effects of BTC price
Almost MEMPOOL and low transaction activity is not exactly the best collection of positive price. Specifically, it can indicate a decrease in speculative interest and reduce investor enthusiasm, which leads to the uniformity of bitcoin.
From writing these lines, the BTC value is estimated at about 100450 dollars, with a decrease of approximately 2 % over the past 24 hours. According to Coingeko data, Cryptocurrency Premier has lost about 3.5 % of its value in the past seven days.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
A distinctive image created by Dall-E, Chart from TradingView
