Summary
The Bitcoin blockchain is witnessing a significant decline in its on-chain activity, with the Mempool showing critical low levels of unconfirmed transactions, even as Bitcoin’s price hovers near record highs.
Key Insights:
- The Mempool has dwindled to about 15,000 transactions awaiting confirmation—down from 150,000 in late 2024 when Bitcoin first surpassed $100,000.
- Experts, including Joël Valenzuela, warn of a looming crisis due to the absence of retail investors, suggesting that unless Mempool traffic increases, the network may face severe consequences.
- Joao Wedson emphasizes that rising Mempool transactions would indicate a return of retail interest, reflecting increased demand.
Recent Trends
Since March, Bitcoin’s trading volume has fluctuated between $3,000 and $30,000, signaling tepid demand despite its price stability above $100,000.
Valenzuela remarked: “Bitcoin’s mempool (queue of transactions waiting to be processed) is almost completely empty. The percentage of miner revenue from fees has dropped to a fraction, indicating a troubling trend.”
Moreover, he stated, “Necessarily, almost all actual users of Bitcoin have disappeared, even while the prices hit all-time highs!” This has raised alarms about the network potentially transforming into a custodial asset controlled by governments or large institutions.
Bitcoin blockchain
Conclusion
The current state of the Bitcoin market raises questions about its future viability and the sustainability of its price in the absence of meaningful user engagement.
