Block subsidies comprise nearly all of this revenue rather than transaction fees, pointing to limited demand for Bitcoin blockspace.
Bitcoin News
The Bitcoin network recorded its lowest activity level in 12 months, with the seven-day moving average of active addresses falling to 660,000. Multiple network metrics now show weakness beyond typical seasonal patterns.
Network activity last peaked in December 2024 during heightened speculation around the Ordinals and Runes protocols. The Ordinals protocol allows for the inscribing of data directly onto individual satoshis, while Runes enables the issuing and trading of fungible tokens on Bitcoin.
Daily miner revenue dropped from a $50 million average during Q3 to approximately $40 million currently. Block subsidies comprise nearly all of this revenue rather than transaction fees, pointing to limited demand for Bitcoin blockspace.
Runes transactions currently represent a larger share of total network transactions but contribute only 5% to 10% of fee revenue. Miners prioritize transactions based on fee rates set by users, measured in satoshis per virtual byte.
Cheap blockspace allows Runes transactions with minimal fees to get processed, creating an unusual dynamic within transaction composition. When half of Bitcoin's throughput generates negligible fees, concerns arise about the mismatch between network utilization and actual value creation.
The Bitcoin network's transaction fee structure becomes increasingly critical as block subsidies diminish with each halving cycle. Sustainable miner revenue will depend more heavily on users willing to pay for scarce blockspace access.
Current data raises questions about long-term mining economics if transaction volume remains high but fee generation stays low. The network's security model relies on miners receiving adequate compensation for validating transactions and securing the blockchain.
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