Small bitcoin transactions dominate network activity
Transactions worth less than 0.01 BTC, roughly $630, now account for about 80% of all daily bitcoin network activity, up sharply from 44% in 2023, according to CryptoQuant data. The surge is pushing overall transaction levels close to record highs despite relatively weak bitcoin prices.
Daily transactions have climbed above 800,000, nearly matching previous cycle peaks and more than doubling the lowest levels seen in 2025. The average number of transactions per block has also remained near historic highs for weeks, indicating sustained growth rather than a short-term spike.
Automation and data use drive shift
CryptoQuant head of research Julio Moreno said the increase is largely driven by automated or protocol-based activity rather than traditional transfers of value. Many of these transactions involve very small amounts of bitcoin but occur in extremely high volumes, with some as low as 546 satoshis, or about $0.35.
The trend is closely tied to rising use of the OP_RETURN opcode, which allows small pieces of data to be embedded on the blockchain without creating spendable outputs. This functionality has been widely used by protocols such as Runes, Ordinals, and BRC-20 tokens, as well as timestamping tools.
As a result, the bitcoin network is increasingly being used for data-related purposes alongside financial transactions, marking a structural shift in how the blockchain operates.
Mempool grows as low-value transactions pile up
The influx of small transactions has expanded the bitcoin mempool to around 128,000 unconfirmed transactions, the largest backlog since February 2025. Most of these are low-fee transactions, according to Moreno, and current levels remain below the congestion peaks seen in 2023 and late 2024.
Still, the buildup signals increasing competition for block space.
Rising activity may push fees higher
Moreno said continued growth in non-financial onchain activity could put pressure on network capacity, potentially driving up fees for transactions that require faster confirmation.
The bitcoin network activity index has been rising steadily since January and is now at its highest level since the fourth quarter of 2024, sitting about 7% below its all-time peak recorded in September that year.
The data suggests a lasting shift in network usage, with smaller, data-driven transactions establishing a higher baseline of activity that could influence fee dynamics going forward.
Curious how rising on-chain activity shapes price moves? Explore Bitcoin’s market dynamics in our BTC dominance guide now.
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