Bitcoin Network Activity is submerged to annual minimums as BTC fights under $ 100K: Cryptoquant

The Bitcoin network looks like a ghost city, with its activities that fall at the lowest level in one year. An activity index of the Bitcoin Network of the Cryptoquant Ronda market analysis platform November 2024.

According to a weekly cryptocant reportThe index measures the growth of Bitcoin’s key metrics such as block size, active addresses and transactions number. This means that the decrease in Bitcoin activity covers almost all areas of the network. In particular, the index has fallen below its mobile average of 365 days for the first time since July 2021, when China prohibited Bitcoin mining.

Bitcoin network activity decreases

Examining different parts of the Bitcoin network reveals a strong decrease in its activities. The number of directions and active transactions has fallen into two digits. The total daily number of transactions has fallen 53% of a historical maximum of 734,000 in September 2024 to 346,000 currently the lowest level since March 2024.

Similarly, the number of active addresses in Bitcoin has fallen by 20% of 1.14 million in November 2023 to 942,000 today, the lowest level since October 2024.

Bitcoin miners are also feeling heat because total transaction rates have decreased due to low network activity. Total daily transaction rates are $ 593,000, compared to the end of October 2024, when $ 4.7 million was the best store for rates. Transaction rates now represent 1.8% of total income for Bitcoin miners, indicating lower profitability for this cohort of market participants.

BTC seems overvalued

In addition, the low network activity is also evident in the Bitcoin Mempool almost empty. The number of transactions expected to be included in a block have fallen 99% of 287,000 in December 2024 to 3,000. Cryptoquant says that Mempool has not been so empty since March 2022, during the last bears market.

In addition to the almost empty Mempool, the Bitcoin network has witnessed a collapse in the use of the Runes protocol. Runes was created to coin tokens on the Bitcoin network, and when the protocol was launched in April 2024, the daily return codes number increased to 802,000. However, that figure has fallen to 10,000 today, indicating that many less OP Return codes are used in Bitcoin transactions.

Meanwhile, from a network activity perspective, Bitcoin (BTC) seems overvalued at its current price of $ 97,000. The Metcalfe Red and Blue assessment bands show that the fair value of the asset is between $ 48,000 and $ 95,000.