Key Takeaways
- Bitcoin's transaction count in January fell to an 11-month low.
- Mempools have nearly cleared, causing record-low transaction fees.
- Miners are exploring AI and high-performance computing for revenue.
Bitcoin’s transaction volume declined significantly in January, reaching an 11-month low.
This marks the third consecutive month of falling activity, with monthly transactions now down over 43% from the peak recorded in October 2024, according to The Block’s data dashboard.
Mempool congestion eases
On Saturday, Bitcoin’s backlog of unprocessed transactions, known as mempools, saw a sharp decline. With fewer pending transactions, multiple blocks were mined before reaching full capacity.
The backlog, which stood at around 250,000 in late December 2024, has nearly disappeared, according to Johoe’s Bitcoin Mempool Statistics. As a result, transaction fees have dropped to record lows.
Miners seek alternative revenue
The drop in transaction activity could pose profitability challenges for Bitcoin miners, particularly in the wake of last year’s halving.
To adapt, several U.S.-based mining firms are exploring alternative revenue streams, including offering computing power for AI and high-performance computing workloads.
Price remains stable
Despite the decline in network activity, Bitcoin’s price has remained stable, hovering around $101,500 over the past 24 hours, according to The Block’s Bitcoin Price Page.
