Bitcoin Loses DeFi Shine as Transaction Volume Craters
Once buoyed by experimental protocols, Bitcoin’s transaction activity has retreated to pre-2023 levels, with weekly averages falling to 316,000 before a slight rebound.
The 50% decline from last year’s highs underscores Bitcoin’s fading appeal as a platform for financial innovation compared to dedicated smart contract chains.
The Runes and Ordinals protocols that briefly transformed Bitcoin into a hub for token trading and digital collectibles have seen their influence wane dramatically. As activity returns to baseline levels, transaction fees have stabilized under $1.50 – a stark contrast to the fee spikes during peak speculative periods.
The current lull has even enabled transactions below Bitcoin Core’s standard minimum rates, highlighting how quickly network conditions have normalized after last year’s artificial activity surge.
