Bitcoin network activity has declined to its lowest value in twelve months as the year draws to a close, with the 7-day moving average of active addresses falling to 660,000. While seasonal slowdowns are expected, we’re spotting weakness across multiple network metrics.
Active addresses currently sit at their lowest levels since December 2024, when the network experienced peak activity from Ordinals and Runes speculation. Ordinals are a way to inscribe data like images or text directly onto individual satoshis, while Runes are a newer protocol for issuing and trading fungible tokens on Bitcoin.
The weakness in network activity has also placed downward pressure on miner economics.
Daily miner revenue has declined from an average of $50 million during the third quarter to roughly $40 million as the year closes. This revenue is almost entirely composed of block subsidy rather than transaction fees, highlighting limited demand for Bitcoin blockspace.
An unusual dynamic has emerged within Bitcoin’s transaction composition. Runes transactions now account for a larger percentage of total network transactions, yet contribute only 5-10% of total fee revenue.
When you make a transaction on Bitcoin, you can set the fee rate (sat/vB). Bitcoin miners will then prioritize transactions based on this reward. Runes transactions are often submitted with very low fees, but due to the cheap blockspace, these transactions are picked up, accounting for a larger share of total transactions.
The high transaction count but minimal fee generation from Runes raises concerns over the demand for blockspace. When half of Bitcoin’s transaction throughput generates negligible fees, it suggests a mismatch between network utilization and value creation. As block subsidies continue to diminish with each halving cycle, sustainable miner revenue will increasingly depend on transaction fees from users willing to pay for scarce blockspace.
This is an excerpt from The Block’s Data & Insights newsletter. Dig into the numbers making up the industry’s most thought-provoking trends.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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