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Bitcoin network activity shows a decline in transactions but a rise in settlement volume, \u201cpointing to increased usage by large entities,\u201d reported Glassnode on June 19.<\/p>\n
It added that a \u201cclear divergence\u201d has emerged between market valuation and network activity, indicating that large institutions are becoming more dominant in network activity.<\/p>\n
Daily Bitcoin transactions have dropped from peaks of over 730,000 to around 320,000 to 500,000 in 2025. This has been primarily due to a sharp decrease in non-monetary transactions such as Inscriptions and Runes, it noted.<\/p>\n
Since the start of 2025, non-monetary activity has \u201cdeclined significantly, heavily contributing to the recent contraction in overall network throughput.\u201d<\/p>\n
\nDespite #Bitcoin<\/a>\u2019s elevated price, a clear divergence has emerged between market valuation and network activity. In this report, we explore activity across both on and off-chain markets, and examine how network metrics have changed this cycle.<\/p>\n
Discover more in the latest Week\u2026 pic.twitter.com\/vLhL7sllKK<\/a><\/p>\n
\u2014 glassnode (@glassnode) June 19, 2025<\/a><\/p>\n<\/blockquote>\n
Transaction Size Matters<\/h2>\n
One of the key findings from the analysts was a change in transaction size.\u00a0The economic volume settled on the network has remained historically elevated, with a yearly average of $7.5 billion settled per day, it noted.<\/p>\n
However, the average transaction size has grown to around $36,000, indicating larger entities are increasingly dominating network usage. Additionally, transactions over $100,000 now account for 89% of network volume, up from 66% in 2022.<\/p>\n
\n\u201cThis trend implies that larger entities continue to utilize the Bitcoin network, with the throughput per transaction rising even as overall activity by count declines.\u201d<\/p>\n<\/blockquote>\n
Glassnode also reported that transaction fees have dropped, creating a historical divergence. Typically, bull markets near all-time highs see fee spikes due to network congestion, but current fee pressure remains subdued despite elevated prices.<\/p>\n
This combination of low transaction count and a heightened volume throughput suggests \u201clarge entities\u201d are becoming increasingly dominant for on-chain activity, it stated before concluding:<\/p>\n
\n\u201cThis shift highlights the maturation of the derivative complex around digital assets, and a move toward more stable risk management practices.\u201d<\/p>\n<\/blockquote>\n
Retail Losing Confidence<\/h2>\n
Meanwhile, Santiment reported<\/a> that \u201celite\u201d wallet and \u201cmortal\u201d wallet activity are also diverging.<\/p>\n
\n\u201cWhen large wallets accumulate as retail loses confidence, this is historically the right combination for bullish momentum to inevitably return to crypto markets,\u201d analysts noted.<\/p>\n<\/blockquote>\n
Additionally, traders are showing signs of \u201cimpatience and bearish sentiment,\u201d it noted<\/a> in a separate post, adding that markets \u201chistorically move in the opposite direction of retail\u2019s expectations.\u201d<\/p>\n
Meanwhile, the Bitcoin Fear and Greed Index, which measures market sentiment, has returned to neutral as the asset continues to trade sideways.<\/p>\n
\nBitcoin Fear and Greed Index is 54 \u2013 Neutral
Current price: $104,276 pic.twitter.com\/jhjlSn0s3A<\/a><\/p>\n\u2014 Bitcoin Fear and Greed Index (@BitcoinFear) June 20, 2025<\/a><\/p>\n<\/blockquote>\n
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