Bitcoin Blockchain Activity Remains Low Despite Price Surge Above $95K

By: cryptosheadlines|2025/05/04 18:00:03
0
Share
copy
Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com Bitcoin’s price rise is largely driven by ETF inflows and institutional investment rather than direct on-chain blockchain use.On-chain transaction volumes remain low due to reduced volatility and increased reliance on financial instruments like derivatives.Blockchain traffic shifts to Ethereum, Solana, and Base as they lead in DeFi, staking, and memecoin activity across the crypto market.Bitcoin blockchain activity remains low, even as the cryptocurrency trades above $95,000. Key network metrics suggest minimal on-chain engagement despite growing market optimism.Bitcoin Blockchain Activity Remains LowAccording to insights shared by Alphractal on X, while Bitcoin’s price reaches historic levels, actual Bitcoin blockchain activity remains low. Daily transaction volumes and active addresses continue to show muted participation, revealing a disconnect between price action and blockchain use.Source: AlphractalOne core reason for this trend is the increasing influence of institutional capital. The rise in Bitcoin’s price is largely driven by capital inflows through spot ETFs and large-scale financial institutions, rather than direct blockchain interaction. This price momentum, rooted more in asset trading than utility, limits everyday use of the Bitcoin network.At the same time, Bitcoin’s recent market performance shows historically low volatility. With reduced price fluctuations, fewer traders are engaging in on-chain transactions. This stability often reduces the need for quick trading decisions, leaving blockchain activity subdued.Exchange Volumes May Not Reflect Network UsageAnother factor contributing to weak Bitcoin blockchain activity is artificial volume on centralized exchanges. Some volumes are suspected to be inflated, giving a misleading impression of broader market engagement. This disconnect means the blockchain itself sees less real transaction flow.Source: AlphractalBitcoin is also seeing growing speculative interest through derivatives and structured financial instruments. These off-chain tools allow investors to gain exposure to Bitcoin without directly using the blockchain. As a result, blockchain-level engagement remains modest even while trading interest grows.The market also appears to be in a consolidation phase. Many participants are holding off on large movements, awaiting macroeconomic clarity. This cautious sentiment has further slowed activity on the blockchain.Shift to Second Layers and Competing ChainsThe adoption of second-layer solutions like the Lightning Network is another contributor. As more transactions shift off-chain, Bitcoin mainnet usage appears reduced. Lightning allows for faster, cheaper transfers, drawing activity away from the base layer.Additionally, speculative use is shifting to other chains such as Ethereum, Solana, and Base. These networks host high-volume DeFi, staking, and memecoin activity. This migration pulls on-chain volume away from Bitcoin, keeping its base-layer traffic relatively low.Bitcoin is increasingly viewed as a financial asset, while blockchain-based activity migrates to more dynamic ecosystems.Source link

You may also like

Stop Talking About Gold, Bitcoin Is Not a Safe Haven Asset

One cannot rely on macro narratives like "Gold Rotation" to determine whether Bitcoin has bottomed. True bottom signals will only appear during position unwinding and extreme pessimistic sentiment.

Aave Founder: What Is the Secret of the DeFi Lending Market?

When on-chain lending becomes significantly cheaper to operate end-to-end compared to traditional lending, mass adoption becomes not a question of if, but of when.

The Trader's Playbook: 7 Market Cycle Lessons From LALIGA’s 90 Minutes

What do LALIGA matches teach about crypto markets? Learn how consolidation, breakouts, and late-cycle volatility shape disciplined trading decisions.

How Smart Money Tracker Survived Live AI Trading at WEEX AI Hackathon

Discover how WEEX AI Trading Hackathon tested strategies with real capital—no simulations. See how Smart Money Tracker survived flash crashes and leveraged 18x in live markets.

80% Win Rate to 40% Drawdown: An AI Trader's Brutal Recalibration at WEEX AI Wars

Dive into the technical blueprint of an AI trading system built on LLaMA reasoning and multi-agent execution. See how Quantum Quaser uses confidence thresholds & volatility filters at WEEX AI Wars, and learn the key to unlocking 95% win rate trades.

AI Trading Strategy Explained: How a Beginner Tiana Reached the WEEX AI Trading Hackathon Finals

Can AI trading really outperform human emotion? In this exclusive WEEX Hackathon finalist interview, discover how behavioral signal strategies, SOL trend setups, and disciplined AI execution secured a spot in the finals.

Popular coins

Latest Crypto News

Read more