Bitcoin Transactions Decline as Big Holders Crowd Out Small Holders

In 2025, the Bitcoin ecosystem undergoes a noticeable transformation: the network records a decrease in the number of transactions, while the activity of large market participants increases. According to the analytical platform Glassnode, the structure of on-chain transactions is changing, and this has a significant impact on both network activity and the mining economy.

From records to decline: how on-chain activity has changed

During 2023 and 2024, Bitcoin demonstrated a steady increase in the number of transactions, reaching an all-time peak of about 734,000 transactions per day in November last year. However, by early 2025, the situation had changed: the volume of daily on-chain transactions dropped to 320,000–500,000, which was the lowest figure since October 2023.

Although the total number of transactions has decreased, the volume of funds transferred continued to grow. The average transaction size is currently around $36,200, and the share of large transfers (over $100,000) has increased from 66% in November 2022 to 80% today. This indicates a noticeable increase in the influence of large BTC holders, who are increasingly setting the tone in the on-chain economy.

Off-chain activity is gaining momentum

Experts emphasize that a significant part of cryptocurrency transactions has moved beyond the blockchain — to the off-chain space. The main players in this field have become centralized crypto exchanges, which over the past year have provided an average of about $10 billion in trading volume per day, reaching a maximum of $23 billion in November.

It is important to note that most of these transactions do not require the movement of funds on the blockchain, which explains the decrease in the number of transactions on the network itself. This, in turn, has a negative impact on miners’ income: the share of commission fees in their revenue has dropped to less than 1%, which has become a serious blow to their economic model.

The market is waiting: who will win — the bulls or the bears?

Against the backdrop of the ongoing changes, experts from Santiment note that the Bitcoin market is in a state of uncertainty. Although there is growing tension between bulls and bears, there has not yet been a radical shift in investor sentiment. This suggests that the market is in a rethinking phase, and both powerful breakthroughs and deep corrections are possible in the near future.

The current situation in the Bitcoin network reflects the transition to a new phase of maturity. The growth in the share of large transactions, a decrease in miners’ commission income, and the transfer of activity to the off-chain space signal structural changes in the ecosystem of the first cryptocurrency. The focus is on institutional players who are increasingly determining the rules of the game.