Bitcoin blockchain network activity has hit its lowest point in a year as the Network Activity Index dropped by 15% since November to 3,760, which is the weakest level since February 2024. The pattern is similar to July 2021, when on-chain activity plunged significantly after China’s mining ban.
The Network Activity Index reflects combined data of active addresses, transactions, block size, fees, and others to determine network usage.
Bitcoin network activity hit a one-year low.
The Network Activity Index is down 15% since November, now at 3,760—its lowest since Feb 2024.
Last time it fell this far below its 365-day MA? July 2021, after China’s mining ban. pic.twitter.com/9JecLwp9FL
— CryptoQuant.com (@cryptoquant_com) February 7, 2025
The Network activity has taken a hit after daily transaction volume plunged to 346,000 on Friday, which is a sharp 53% drop from the peak of 734,000. BTC’s memepool also witnessed a major slowdown on the network. Memepool is a temporary storage for unconfirmed Bitcoin transactions. The data says that memepool volumes have crashed from 287,000 in December to just 3,000 on Thursday, which is almost a 99% drop.
Generally, a drop in Bitcoin’s on-chain activity reflects lower transaction fees and faster confirmations, ultimately, releasing network congestion. However, some analysts also see the drop in on-chain activity as a decline in BTC demand, which shows a bearish sentiment in the market.
At present, BTC is revolving around $97,860.44 with a 1.33% hike in a day with an impressive market capitalization of $1.93%, according to CoinMarketCap. Standard Chartered believes that current market conditions favor Bitcoin as long as yields remain stable and the economy stays strong. Geoff Kendrick, the bank’s digital assets research, highlighted that 10-year Treasury yields staying below 4.50% suggests no aggressive Fed tightening, which supports risk assets like Bitcoin. He described this as a “Goldilocks zone” for digital assets. Experts believe that the momentum in BTC could push it beyond the $100,000 mark amid the consolidation pattern.
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