Bitcoin’s Record Hash Rate Overshadows Concerns About Low Transaction Activity and Block Usage

Bitcoin’s network power is reaching unprecedented heights, but its growing hash rate contrasts with concerns about the network’s long-term sustainability, given the current low levels of transaction fees and empty blocks.

Bitcoin miners are working at full throttle, with the network’s hash rate recently achieving an all-time high of 838 exahashes per second (EH/s) on a 14-day moving average. Over the past 24 hours, it spiked to 974 EH/s, marking the second-highest value ever, according to Glassnode data. However, such short-term spikes may be misleading, and longer-term trends provide a clearer view of the network’s health.

In just two days, Bitcoin’s mining difficulty is expected to rise by over 3%, marking the growing computational effort required to mine new blocks. While this is a sign of robust network power, it also highlights the divergence between increasing hash rates and stagnating Bitcoin prices, which remain roughly 25% below their all-time highs.

Miners are under pressure to maintain profitability, relying on two main revenue streams: block rewards and transaction fees. Currently, transaction fees are alarmingly low, averaging just around 4 BTC per day, or roughly $377,634. This is concerning, especially as the block subsidy decreases every four years. To sustain mining incentives, the network will need a steady flow of transactions and higher fees.

Furthermore, the issue of “empty” blocks is becoming more pronounced. Developer Mononaut from Mempool recently pointed out that Foundry USA Pool mined one of the most sparsely populated blocks in over two years, containing only seven transactions. This starkly contrasts with the growing computational power, suggesting an imbalance between the network’s strength and its actual usage.

Nicolas Gregory, the creator of the Mercury Layer and former Nasdaq Board Director, warned that Bitcoin’s current trajectory might be unsustainable if it doesn’t expand beyond the “store of value” narrative.

“Bitcoin cannot survive as just a speculative asset. Empty blocks tell us a bigger story,” Gregory said on X. “If Bitcoin doesn’t develop real use cases for commerce, its future could be in jeopardy.”

As Bitcoin continues to grow in terms of computational power, the challenge remains for the network to foster real-world usage and transaction activity to ensure its continued success.