Bitcoin Fee Market Don Collapse Dey Threaten E Role As Settlement Layer
Galaxy Digital dey warn say Bitcoin fee market don weak well well since 2024 halving. Median daily fees don drop over 80% by August 2025, and almost 15% of blocks dem dey mine for free. Decrease in demand from OP_RETURN transactions, spot BTC ETFs weh lock 1.3 million coins off-chain, plus speculators shifting to faster chains like Solana don thin mempool and reduce miners incentive. With block subsidy drop to 3.125 BTC, this shrinking fee market fit spoil Bitcoin role as secure settlement layer. Core network security depend on steady on-chain activity to replace falling block rewards. Bitcoin Core v30 upgrade fit allow more OP_RETURN outputs, wey dey start debate on how to use blockspace. Galaxy Digital dey caution say if no fresh demand come for Bitcoin fee market transactions, network risk be “settlement layer without settlement.”
Bearish
Galaxy Digital warn say transaction demand don drop fit worsen Bitcoin security model. Historically, fee volatility spike after halving events for 2016 and 2020, but on-chain activity later recover as new demand show. But now, Bitcoin fee market collapse different: Ordinals and Runes non-monetary use don shrink permanently, plus spot ETF inflows dey keep BTC idle off-chain. For short term, lower fees fit help traders do cheap on-chain transfer. But shrinking miner revenue dey weaken network security, fit increase volatility. For long term, constant low fees go kill miner incentives, fit reduce hashrate and make 51% attacks easy. This structural weakness go kill bullish sentiment, show bearish outlook for Bitcoin price and network health.