{"id":15012,"date":"2021-08-19T23:00:00","date_gmt":"2021-08-19T23:00:00","guid":{"rendered":"http:\/\/ci028b13df60002426"},"modified":"2025-01-29T14:56:50","modified_gmt":"2025-01-29T14:56:50","slug":"on-chain-bitcoin-volume-at-five-year-low","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/on-chain-bitcoin-volume-at-five-year-low","title":{"rendered":"On-Chain Bitcoin Volume At Five-Year Low"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p><em>The below is from a recent edition of the Deep Dive, <\/em>Bitcoin Magazine<em>&#8216;s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, <a href=\"https:\/\/members.bitcoinmagazine.com\/\">subscribe now<\/a>.<\/em><\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/01\/6_unnamed-4.png\" title=\"\"><\/figure>\n<p>Bitcoin on-chain volume (<a href=\"https:\/\/coinguides.org\/bitcoin-change-address-output\/#:~:text=In%20Bitcoin%3B%20change%20output%20is,more%20than%20the%20specified%20amount.\" target=\"_blank\" rel=\"noopener\">change adjusted<\/a>) has touched a five-year low in bitcoin terms, currently at 329,226 BTC per day over the last seven days. Low on-chain volume has been a short term bearish indicator, as it demonstrates low demand to use the network. <\/p>\n<p>There are a few reasons for this development, one of which is the explosive growth of the Lighting Network, coupled with the secular trend over the last decade of an increasing BTC\/USD exchange rate. The same chart in U.S. dollar terms looks quite different.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/01\/6_unnamed-5.png\" title=\"\"><\/figure>\n<p>Looking at the change-adjusted volume transfer of the network in dollar terms shows just how effectively bitcoin is scaling as a monetary network. Currently, the total change-adjusted transfer volume (seven-day moving average) on the Bitcoin network is $15.2 billion, off from a high of over $50 billion this April, in part because of the rebounding hash rate and faster-than-average block times. <\/p>\n<p>Similarly, fees as a percentage of bitcoin mining revenue has fallen sharply, and is currently at 1.46%. With the block subsidy trending to zero over time as supply issuance is programmatically reduced in quadrennial fashion over the next 120 years, fees will eventually make up 100% of miner revenue. However, currently, with miner profit margins extremely large, this is not a worry and competition is extremely strong as miners are pulling in near-record revenue across 2021 (in dollar terms).<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/01\/screen-shot-2021-06-22-at-101721-am.png\" title=\"\"><\/figure>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>But the change-adjusted volume transfer of the network in dollar terms shows just how effectively bitcoin is scaling.<\/p>\n","protected":false},"author":2539,"featured_media":8375,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[85,1822,991],"class_list":["post-15012","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-bitcoin-magazine-pro","tag-bitcoin-volume","tag-on-chain-analysis"],"author_data":{"id":2539,"name":"Dylan Leclair","nicename":"dylan-leclair","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/01\/dylanheadshot-edited-96x96.png"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/blockchain.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/15012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2539"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=15012"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/15012\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/8375"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=15012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=15012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=15012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}