Despite trading below its all-time high, Bitcoin network activity is surging towards record levels, driven by innovations like Ordinals and Runes. This increased usage contrasts with continued price pressure from spot Bitcoin ETF outflows, which have seen nearly $182 million in net withdrawals this week.
The Bitcoin Network Activity Index, which tracks metrics like active addresses and transaction volumes, shows usage is rising toward 2024-2025 peak levels. It remains above its 365-day moving average, indicating stronger-than-average network engagement.
New applications are driving this increase in on-chain activity. Ordinals and BRC-20 tokens have enabled a native digital asset ecosystem directly on the Bitcoin blockchain.
Meanwhile, the Runes token standard has improved efficiency by utilizing Bitcoin’s UTXO model. These developments have expanded Bitcoin’s function beyond payments, increasing demand for block space.
Bitcoin was trading below $63,000 as investor caution persisted. The decline was partly driven by spot Bitcoin ETFs facing a seventh consecutive week of outflows.
Geopolitical risks remain, even as US-Iran talks have entered a negotiation phase. Bitunix analysts stated that “easing geopolitical tensions should help contain energy prices.”
The analysts believe the next phase for risk assets will depend on Federal Reserve policy signals. They noted market volatility will be driven by inflation reports and labor data rather than geopolitics.
