Whales Steering Bitcoin Amid Quiet Blockchain Activity

(MENAFN- The Arabian Post)

Bitcoin continues to hover above the US $100,000 mark, yet the network's on‐chain activity tells a contrasting story. Overall transaction counts have declined sharply-from over 730,000 daily in 2023–24 to between 320,000 and 500,000 so far in 2025-while average transaction values surge, indicating that large investors are driving activity.

Despite fewer overall movements, the economic weight of each transaction remains high. Daily on‐chain settlement averages around US $7.5 billion, peaking at US $16 billion when Bitcoin briefly pierced its all‐time high of US $111.7 thousand. That amounts to an average transaction value of about US $36.2 thousand-dramatically higher than before.

The evidence points to a concentration in high‐value transfers. Transactions exceeding US $100,000 now account for nearly 89 percent of on‐chain volume-a stark increase from around 66 percent in late 2022-while transfers under that threshold have dwindled. Smaller wallets and lower‐value senders are increasingly absent from the blockchain.

Transaction fees are also bucking historical trends. In previous bull markets, network congestion drove fees higher. Now, with Bitcoin nearing all‐time highs, miner fee revenue has dropped to just US $558,000 per day-markedly low in comparison to past cycles. This divergence demonstrates muted block‐space demand despite soaring prices.

Meanwhile, trading activity is shifting decisively off‐chain. Centralised exchanges now dominate, with combined spot, futures and options volumes estimated at seven to 16 times greater than on‐chain settlement values. Futures markets alone trade roughly US $57 billion per day on average, peaking at US $122 billion in November 2024. Spot volumes, although smaller, remain robust, averaging US $10 billion daily.

Total open interest in Bitcoin futures and options has reached about US $96.2 billion. Notably, collateral structures have improved; stablecoin‐margined positions now dominate the derivatives landscape-an encouraging sign of reduced systemic risk following the collapse of FTX.

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The on‐chain/off‐chain divergence shapes a nuanced picture: Bitcoin's price resilience stems less from broad public usage and more from concentrated institutional flows and leveraged activity in centralised markets. While large holders continue to shift substantial sums on‐chain, much of the ecosystem's vitality lies within off‐chain derivatives.

Arabian Post – Crypto News Network

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