Despite Bitcoin reaching historic price highs, network activity has plummeted by 97%, raising alarms among market observers.

The low transaction activity raises concerns about the sustainability of Bitcoin, as it could lead to increased centralization by states and institutions.

Pending transactions have fluctuated between 3,000 and 30,000 since March 2025, highlighting weak demand even as Bitcoin's value rises.

As of July 5, 2025, the Bitcoin mempool contained only about 5,000 pending transactions, a stark contrast to the 150,000 recorded during the price surge in late 2024.

Bitcoin's exchange volume has also shown a downward trend, with the 30-day average dropping to $5.9 billion, indicating a consolidation phase despite price rallies.

Experts suggest that the significant lack of user engagement, with many actual users having left the network, marks a potential crisis for Bitcoin's future.

Nonetheless, institutional interest remains strong, with $1 billion in net inflows into spot BTC ETFs, indicating some confidence in Bitcoin despite the broader market challenges.

Valenzuela warned that the near-empty mempool could lead to potential centralization of the network, diminishing its decentralized nature.

Transaction volumes have dropped by 90%, indicating a significant decline in user engagement on the blockchain.

Joao Wedson, founder of Alphractal, pointed out that the low mempool density reflects the absence of retail investors, which is crucial for market vitality.

This decline in daily network utility poses challenges for miners' financial sustainability and threatens the decentralization of the Bitcoin network.

Miner revenues have suffered due to fewer transactions, with fees now contributing less than one percent to their overall earnings.