Bitcoin Network Activity Drops 15%, Reaches Lowest Level in a Year

The Bitcoin network has seen a significant decline in activity, with the Bitcoin Network Activity Index dropping 15% since its peak in November 2024, according to a CryptoQuant report. The index now sits at 3,760, its lowest level in a year.

Key Metrics Reflect Downturn

📉 Daily Bitcoin transactions have plummeted 53%, from an all-time high of 734K (September 2024) to 346K today.
💰 Bitcoin’s price remains high at $99K, but its fair value based on network activity is estimated between $48K and $95K.
🚨 Bitcoin mempool (holding unconfirmed transactions) is almost empty, with pending transactions dropping 99%—from 287K (December 2024) to just 3K.

What’s Causing the Decline?

🔻 The collapse of the RUNES protocol, which previously boosted Bitcoin’s transaction volume by minting tokens via OP RETURN codes, is a major factor.
🔻 OP RETURN codes usage fell from 802K (April 2024) to just 10K today, significantly reducing on-chain activity.

Will Bitcoin’s Price Be Affected?

Despite the drop in activity, Bitcoin remains priced at $99K. However, analysts warn that if network engagement does not improve, Bitcoin could face downward pressure in the coming months.