According to Memepool Space, major indicators including active addresses and the number of daily transactions have dropped sharply, indicating a weakening of user engagement and a possible temporary retreat in market confidence.
Recent Glass Festival data show that since the bear market in late 2023, the number of active Bitcoin addresses has dropped to just 566,000 per day, a level not seen. Similarly, the number of daily transactions has fallen below 275,000, a figure reflecting an average monthly decline of nearly 30% in April 2025.
Sequence and inscription cooling
Part of the decline in network activity is attributed to the faded hype around Bitcoin sequences and inscriptions. These NFT-like digital artifacts once were the main source of congestion and gasoline expenses on the Bitcoin blockchain, and interest has decreased in recent months.
Source: MEMPOOL Space
Dune Analytics data shows that the number of inscriptions in daily ordinal numbers has plummeted to below 3,000, while the highs in late 2023 and early 2024 exceeded 400,000. This trend not only relieves the pressure on transaction fees, but also reflects a wider cooling of speculation.
Bitcoin miners are struggling to decline in network activity. As transaction volumes decline and fees decline, mining revenues (especially from fees rather than blocking rewards) have also taken a hit. Now, expense-based revenue accounts for 2% of miners’ total income, which is significantly lower than the 10-15% level during the Inscription boom.
Source: Block
Daily miner revenues have fallen below $30 million, putting pressure on smaller mining operations and potentially accelerating industry consolidation, according to BlockChain.com.
Market explanation and prospects
Analysts believe the current slowdown may not be entirely bearish. Some see it as a phase of market integration, where speculative excesses are washed away before a healthier growth cycle recovers. Others noted that despite the decline in activity, Bitcoin’s core fundamentals remain intact, and hash rates remain hovering at all-time highs and institutional interest (albeit soft) stable.
Nevertheless, the short-term outlook remains cautious. Declining transaction volumes, user activity and fee incentives present challenges to network sustainability, especially with the next Bitcoin halving in 2028.
The latest data highlights the key turning point of Bitcoin. Although long-term holders and institutions may stay, the retail market appears to be retreating – at least for now. Whether this period marks the beginning of a deeper structural shift in Bitcoin usage patterns may depend on broader macroeconomic development and evolving user narratives.
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