Bitcoin On-Chain Transactions Hit 18-Month Low as Ordinals, Runes Cool and Slipstream Emerges
Bitcoin’s on-chain transactions have fallen to an 18-month low, with the seven-day average dropping from over 700,000 in early 2024 to around 350,000 daily. The slump follows fading interest in NFT protocols Ordinals and the BRC-20 standard Runes, which generated 15.6 million transactions and $162 million in fees over four months. Average fees have plunged below $1.50, easing block competition but squeezing miner revenue after the halving. To capture low-fee demand, miner pool MARA launched Slipstream, allowing 1 sat/vB transactions to bypass node-relay policies. This move has sparked debate among Bitcoin Core developers over network health and censorship resistance. Lower fees benefit everyday users but force miners to rely mainly on block rewards. Traders should watch for renewed Ordinals or Runes activity, data-limit adjustments, or Layer-2 solutions as possible catalysts for the next uptick in Bitcoin transaction volume and fees.
Neutral
The decline in Bitcoin’s on-chain transactions and fees reflects a temporary cooling of speculative NFT protocols rather than a fundamental shift in demand for BTC. While lower fees improve transfer affordability, miner revenues have dropped post-halving, increasing reliance on block rewards. The introduction of Slipstream offers a niche solution but is unlikely to offset the overall fee income loss. In the short term, traders may see muted network-driven catalysts for price movement. In the long term, renewed protocol activity or Layer-2 expansion could restore fee markets, but until then, network usage cycles are expected to drive only neutral price impact.