Bitcoin’s Mempool: A Deserted Wasteland or Just a Quiet Afternoon?

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It appears that Julio Moreno, the esteemed head of research at CryptoQuant, has made a rather startling observation: Bitcoin‘s mempool, that illustrious queue of pending transactions, is about as bustling as a library at midnight. In fact, he has declared it to be “practically empty.” One can only imagine the tumbleweeds rolling through the digital streets of this once-thriving metropolis of transactions. 🤔

In a turn of events that would make even the most stoic of financial analysts raise an eyebrow, Bitcoin’s transaction activity has plummeted to levels not seen since last March. It’s as if the entire Bitcoin community has decided to take a collective nap, leaving their wallets to gather dust. 💤

Meanwhile, the fees associated with Bitcoin transactions have taken a nosedive, now resting comfortably at a mere 1 sat/vB. One might say it’s cheaper than a cup of tea at a dodgy café! ☕️

Jameson Lopp, co-founder of Casa and part-time oracle, has chimed in with his two cents, suggesting that this empty mempool is a clear indication that the “sovereign usage” of our beloved cryptocurrency is “extremely low.” It seems that the Bitcoiners are more interested in hoarding their digital gold than actually using it. Who knew that stacking sats could be the new national pastime? 🏆

Some commentators, with a flair for the dramatic, have attributed this lethargy to the infamous “hodl” mentality. Instead of spending their precious coins, users are opting to wait for the price to skyrocket, like a cat waiting for a mouse to make a move. 🐱

However, Lopp has pointed out a curious phenomenon: those who are buying Bitcoin don’t seem to be withdrawing it to self-custody. In fact, the total number of unspent transaction outputs (UTXOs) is dropping “like a rock,” which suggests that fewer coins are being spread across individual wallets. It’s as if everyone is keeping their treasures locked away in a vault, waiting for the right moment to strike! 💰

Despite some interpreting Bitcoin’s alarmingly low fees as a sign of impending doom, Bart Mol, the founder and host of the “Satoshi Radio” podcast, has taken a rather alarmist stance. He argues that the digital gold narrative is “slowly destroying the foundation of Bitcoin.” One can only hope he’s not planning to write a horror story about it! 📖

On a more optimistic note, Canadian Bitcoin developer Peter Todd believes that this low activity might simply be a sign of the Bitcoin network’s growing popularity. “Almost every transaction buying goods or services that I’ve done with Bitcoin in the past few years has been with Lightning. None of those show up in the blockchain,” Todd explains. It seems that while the mempool may be empty, the spirit of Bitcoin is very much alive and kicking! ⚡️

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2025-02-02 14:17