BTC address activity hits a one-year Dip , raising concerns about demand for block space.

Bitcoin network activity has fallen to a 12-month low: active addresses (7-day moving average) are only 660,000, reflecting weak Block Space demand and dragging down Miners revenue.

The seasonal slowdown towards the end of the year is appearing early, with many network indicators weakening. Current levels are the lowest since December 2024, when activity peaked due to speculative frenzy around Ordinals and Runes.

Network activity: low level and transaction components

The number of active addresses (7-day MA) fell to 660,000, the lowest level in 12 months and the lowest since December 2024, despite seasonal factors.

Rune transactions currently account for a larger share of total volume, but only contribute 5%–10% of fee revenue. This raises concerns about Block Space demand and demonstrates that network usage is disproportionate to value creation, with half of the throughput generating negligible fees.

Compared to December 2024, when activity peaked due to speculation in Ordinals and Runes, current data shows a clear cooling down and low fee demand, reflecting weakened network participation.

Miners: Revenue and Fee Structure

Miners revenue per day decreased from an Medium of $50 million (Q3) to approximately $40 million; almost all of this came from block subsidies, not transaction fees.

The weak fee structure makes income dependent on block subsidies, while Block Space demand is limited. When the majority of throughput does not generate significant fees, the Miners economy is under pressure and profit margins are more sensitive to price fluctuations and block rewards.

Low fees coupled with reduced address activity suggest the network is lacking incentives for valuable transactions, diminishing its ability to offset block subsidies with fees and posing long-term risks to cybersecurity if this trend persists.