Bitcoin's network activity nears all-time high as small transactions dominate

Bitcoin network activity has surged to near record levels. Small transactions now dominate daily usage, accounting for 80% of all activity on the network. This shift reflects a growing trend of using Bitcoin as a data layer rather than just for payments. The rise in activity has pushed CryptoQuant’s Bitcoin Network Activity Index into positive territory for the first time since 2024. Despite subdued bitcoin prices, overall network usage remains only about 7% below its all-time peak.

A key driver of this growth is the proliferation of Bitcoin Ordinals, introduced in 2023. The system allows users to embed arbitrary data into transactions, leading to a surge in usage, fees, and storage demands. In May 2023, mining revenue hit $916.6 million, partly due to this increased activity.

The network’s mempool has now swelled to around 128,000 transactions, the highest level since February 2025. Competition for block space has intensified as small, data-heavy transactions flood the system. The network’s evolution continues to reshape its primary use case. With most daily transactions now under 0.01 bitcoin, the demand for block space is likely to keep rising. This trend highlights Bitcoin’s expanding role beyond traditional payments.