Network Congestion Indicator

Compares average transaction fees (7DMA) with active addresses (7DMA) to reveal Bitcoin network congestion levels. When fees rise alongside active addresses, it indicates high demand for block space and network congestion. Low fees with high activity suggest efficient network operation.

Interpretation

This chart helps identify network demand patterns by correlating the cost to transact with user activity. Spikes in transaction fees relative to active addresses indicate congestion, often during bull markets or high volatility periods. Conversely, low fees with stable active addresses suggest excess network capacity.

Key Insights

  • Reveals Bitcoin network congestion and demand for block space
  • High fees + high active addresses = strong network congestion
  • Low fees + high active addresses = efficient network operation
  • Transaction fee spikes often precede or coincide with price movements
  • Both metrics use 7-day moving average to smooth daily fluctuations

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