Despite reaching a record-high price, activity on the Bitcoin blockchain is declining. According to a new Glassnode report, major players continue transferring billions of dollars, while the number of transactions remains near the bottom. Most of the trading volume has shifted to derivatives and centralized exchanges, leaving the network operating in an unusually quiet state.
Transaction Count Drops by One-Third
Since the start of 2025, the Bitcoin network has processed between 320,000 and 500,000 transactions per day. In contrast, the daily figure consistently exceeded 700,000 in 2024. Analysts attribute the drop primarily to a sharp decline in non-monetary transactions, such as Inscriptions and Runes, which store data on the blockchain. These types of transactions had temporarily increased network load, but activity sharply decreased in 2025.
BTC's Number of Transactions. Source: Glassnode
While transaction volume is down, the total transferred value remains high. According to Glassnode, the network processes an average of $7.5 billion per day, with each transaction averaging around $36,200. This suggests the Bitcoin network is increasingly used for large-value transfers. Transactions exceeding $100,000 now make up 89% of the total volume, up from 66% in 2022.
Transactions below $100 have lost their share. Since December 2022:
$10,000–$100,000 transactions dropped from 21,4% to 7.9%
$1,000–$10,000 transactions fell from 8,4% to 2,1%
Transactions under $1,000 decreased from 3,9% to 0,9%
Glassnode notes that smaller users are gradually pulling away from on-chain activity.
BTC's Relateive Transfer Volume Breakdown by Size. Source: Glassnode
Miner Fee Revenue Hits a Low
Miners are currently earning just $558,000 per day from transaction fees — significantly lower than in previous bull cycles. The competition to include transactions in blocks has declined, indicating low demand for block space. According to the Fee Revenue Multiple (FRM), which measures the share of fees in total miner revenue, the current situation is abnormally quiet for a market near its all-time high.
Total Transaction Fees. Source: Glassnode
Trading Shifts to Exchanges and Derivatives
Glassnode analysts also highlight that the majority of activity is now taking place off-chain. Centralized exchanges maintain a daily trading volume around $10 billion, peaking at $23 billion on some days. The derivatives market has expanded dramatically. Futures volumes now reach $57 billion per day, while options trade at $2.4 billion daily — 7 to 16 times higher than on-chain volumes.
The total open interest in futures and options stands at $96.2 billion, compared to just $10.9 billion a year ago — nearly a 9x increase. Notably, 89% of these positions are collateralized with stablecoins, which experts view as a sign of market maturity. In the previous cycle, crypto-collateral dominated, leaving the system more vulnerable to crashes.
Market Is Highly Leveraged
Glassnode points to a significant increase in leverage: the Realized Cap Leverage Ratio has reached 10,2% — one of the highest readings in history. Only 10,8% of trading days have seen greater leverage. This concentration of leveraged positions could amplify volatility in the event of a market correction.
What Comes Next
Analysts say the current market model is diverging from previous cycles. The stark contrast between Bitcoin’s high price and low on-chain activity suggests a shift: price formation is now largely driven by exchange and derivatives activity. However, despite the drop in transaction counts, the on-chain layer remains a foundational element of the ecosystem, as it still underpins exchange deposits and withdrawals.
