Bitcoin’s Network Is Booming Even as Prices Remain Below Record Highs

Bitcoin usage is surging despite weak prices, as Ordinals and Runes drive network activity while ETF outflows pressure BTC lower.

Bitcoin network activity remains close to record highs, according to CryptoQuant’s Bitcoin Network Activity Index, even though the cryptocurrency is still trading below its all-time high.

The index tracks metrics such as active addresses, transaction volumes, unspent transaction outputs (UTXOs), and demand for block space to measure actual activity on the network.

Network Usage Surges

The Network Activity Index line is rising again and is moving back toward the levels seen during the 2024-2025 peak. It remains above its 365-day moving average, further indicating that network usage is stronger than its long-term average. According to CryptoQuant’s analysis, this trend differs from previous market cycles, in which rising prices were usually the main driver attracting new users. Instead, current network growth appears to be taking place independently of BTC’s price performance.

Source: CryptoQuant

The report said that new applications built on Bitcoin are helping drive this increase in activity. Ordinals have enabled users to permanently attach images, text, and non-fungible tokens to individual satoshis. This has created a native digital asset ecosystem on the Bitcoin blockchain. BRC-20 tokens, which use the Ordinals protocol, have also allowed the creation of meme coins and community tokens without relying on smart contracts.

Meanwhile, Runes, a token standard developed by Ordinals creator Casey Rodarmor, uses Bitcoin’s UTXO model to improve efficiency while reducing network overhead.

These developments have increased demand for block space and expanded Bitcoin’s function beyond simple payments. The crypto analytics firm added that Bitcoin is increasingly being used to store and verify data, while network adoption continues to grow even as broader market factors such as ETF flows, institutional demand, and macroeconomic conditions continue to influence price movements.

Pressure on BTC

Bitcoin was trading below $63,000 on Wednesday as investors remained cautious about risk assets. The decline was also driven by continued outflows of money from spot Bitcoin ETFs, which are now on track for a seventh straight week of withdrawals.

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So far this week, US-based spot Bitcoin ETFs have recorded nearly $182 million in net outflows, adding further pressure on the crypto asset’s price.

Geopolitical risks have also not disappeared, even as US-Iran talks in Switzerland moved into a negotiation phase. Bitunix analysts believe that investors may first need to see a turning point in broader liquidity conditions for crypto to attract meaningful new inflows. In a statement to CryptoPotato, the analysts explained

“In the near term, easing geopolitical tensions should help contain energy prices. But the next phase for risk assets will be determined less by whether the Strait of Hormuz remains open and more by whether markets become convinced that the Federal Reserve is preparing for another tightening cycle. That shift suggests that market volatility in the weeks ahead will increasingly be driven by inflation reports, labor market data, and Fed policy signals rather than developments on the geopolitical front.”