Bitcoin Network Activity Plunges to Yearly Lows as BTC Struggles Below $100K: CryptoQuant

The Bitcoin community looks like a ghost city, with its actions falling to the bottom degree in a yr. A Bitcoin Network Activity Index from the market analytics platform CryptoQuant hovers round 3,760, the bottom since February 2024, indicating that exercise on the main blockchain has plunged 15% since its November 2024 report excessive.

According to a weekly CryptoQuant report, the index measures the expansion in key Bitcoin metrics like block measurement, energetic addresses, and variety of transactions. This means the decline in Bitcoin exercise encompasses nearly all areas of the community. Notably, the index has fallen under its 365-day shifting common for the primary time since July 2021, when China banned Bitcoin mining.

Bitcoin Network Activity Declines

Examining completely different components of the Bitcoin community reveals a steep decline of their actions. The variety of energetic addresses and transactions has fallen by double digits. The complete every day variety of transactions has tumbled 53% from an all-time excessive of 734,000 in September 2024 to 346,000 at the moment, the bottom degree since March 2024.

Likewise, the variety of energetic addresses on Bitcoin has fallen 20% from 1.14 million in November 2023 to 942,000 at this time, the bottom degree since October 2024.

Bitcoin miners are additionally feeling the warmth as a result of complete transaction charges have declined due to low community exercise. Total every day transaction charges are $593,000, in contrast to late October 2024, when $4.7 million was the native high for charges. Transaction charges now characterize 1.8% of complete income for Bitcoin miners, indicating decrease profitability for this cohort of market individuals.

BTC Appears Overvalued

Furthermore, the low community exercise can also be evident within the nearly empty Bitcoin mempool. The variety of transactions ready to be included in a block has fallen 99% from 287,000 in December 2024 to 3,000 at the moment. CryptoQuant says the mempool has not been this empty since March 2022, over the last bear market.

Besides the almost empty mempool, the Bitcoin community has witnessed a collapse in using the Runes protocol. Runes was created for minting tokens on the Bitcoin community, and when the protocol was launched in April 2024, the every day variety of OP RETURN codes spiked to 802,000. However, that determine has fallen to 10,000 at this time, indicating that a lot fewer OP RETURN codes are utilized in Bitcoin transactions.

Meanwhile, from a community exercise perspective, bitcoin (BTC) seems overvalued at its present worth of $97,000. The pink and blue Metcalfe valuation bands present that the asset’s truthful worth is between $48,000 and $95,000.