On-chain activity on Binance Smart Chain has dropped to its lowest level since August 2025, with daily fees falling to approximately $593,000. Analysts note this mirrors a similar demand lull last summer that preceded a major Bitcoin rally, alongside other key metrics suggesting a potential market bottom may be forming.
A sharp decline in network fees on the **Binance Smart Chain** is signaling historically low user demand. Data from analyst Amr Taha shows fees recently fell to $593,000, below the $1.07 million low recorded last August.
“The slowdown in on-chain activity echoes a similar lull last summer that came right before a huge rebound in Bitcoin,” the data indicates. That previous period was followed by a Bitcoin rally of more than 95%.
Another on-chain metric also shows significant contraction. Taha flagged a steep drop in Bitcoin’s short-term holder realized market cap to about $386 billion.
This reading is well below an earlier low of $440 billion recorded in April 2025. Similar contractions have historically coincided with capitulation phases preceding price rebounds.
Meanwhile, the derivatives market is undergoing a structural reset. Analysts at XWIN Research Japan noted Bitcoin futures open interest has fallen sharply.
This indicates the recent price drop was driven by liquidations, not aggressive spot selling. Such a reset can help stabilize the market.
However, the options market structure presents a risk. Analysis from Coinbase Institutional shows a pronounced negative gamma band between $60,000 and $70,000.
A break below $60,000 could accelerate selling due to dealer hedging activity. Some on-chain indicators, like the Binance Fund Flow Ratio, remain low, suggesting limited immediate sell-side pressure.
For a durable bottom to form, stronger spot volume support will be essential. Bitcoin is currently trading just above $68,000.
