Bitcoin’s Mempool Clears as Fees Drop, Marking Shift in Network Activity

• Transaction volume for Bitcoin increased during price spikes but decreased after the price leveled down in early 2025.
• Bitcoin’s price increased in 2023–2024 due to increased mempool congestion, showing the need for networks in bull markets.
• The drop in transaction volume in 2025 signals a shift towards stabilization after Bitcoin’s prolonged uptrend.

Cryptoquant’s head of research, Julio Moreno, noted on X that the Bitcoin mempool is almost empty, and the transaction fees went as low as 1 sat/vB. Transaction volume closely mirrors changes in the price of Bitcoin. Transaction activity increased as Bitcoin’s price rose during the bull markets of 2020–2021 and 2023–2024. However, in early 2025, the number of Bitcoin transactions has recently decreased.

Surge in Transaction Volume during Bull Markets

Moreno’s analysis of Bitcoin’s mempool data reveals changes in transaction activity. The mempool saw increased congestion in mid-2023, leading to higher transaction fees. Because there was a great demand for block space during these periods, high-fee transactions predominated. Additionally, the number of low-fee transactions rose in tandem with the price of Bitcoin in early and late 2023. 

Bitcoin’s price movement influenced transaction activity. The mempool’s congestion in 2023 and 2024 suggests a correlation between network activity and price surges. As Bitcoin’s price moved upward, more transactions flooded the network. The 2023-2024 period saw transaction volume increase with every market rally. Hence, the market dynamics were directly tied to transaction activity.

Transaction Volume Decline as Bitcoin Stabilizes

However, by early 2025, the network witnessed a sharp drop in transaction volume, even as Bitcoin’s price remained elevated. This decline indicates a potential stabilization phase after a prolonged uptrend. The decrease in mempool congestion highlights that Bitcoin’s network usage may be plateauing.

Despite a lower transaction count, Bitcoin’s price continued to hold steady near its all-time highs. Consequently, fewer transactions suggest that Bitcoin’s adoption and transaction volume may be stabilizing as the market digests past gains. The 2023-2024 surge had intensified network usage, but the early 2025 drop signifies a shift toward more stable conditions.