Bitcoin Transfers Fall in 2025 YTD; Fee Revenue Plunges vs 2024
New data shows that Bitcoin transfers in 2025 year-to-date have dropped by roughly 15% compared with the same period in 2024, while the network’s share of revenue from transaction fees has plunged from about 1.2% to 0.5% of miner rewards. This decline in on-chain activity and transaction fees highlights lower demand for block space and reduced fee-driven income for miners. Analysts point to cooling market sentiment, lower trading volumes and fewer high-value transfers as key drivers. In the short term, diminished fee revenue may increase selling pressure from miners seeking liquidity. Over the longer term, sustained lower activity could challenge miner profitability and network security incentives, unless transaction fee demand recovers.
Bearish
The year-to-date drop in Bitcoin transfers and steep fall in transaction fee share point to waning on-chain demand and lower miner revenue—signals typically associated with weakening market sentiment. Historically, similar contractions in network usage have preceded price corrections, as reduced fee income pressures miners to liquidate holdings. In the short term, this trend could heighten downward price volatility; over the long term, sustained low activity poses challenges to miner profitability and network security unless transaction fee demand rebounds.