The speed on the Bitcoin chain – how often the parts move – is at low decade. For some, is it a red flag: has Bitcoin lost the momentum? Is it still used?
In fact, the speed of decline can be the clearest signal to date that Bitcoin matures, and not stagnated. Instead of circulating like money, Bitcoin is more and more held as gold.
A change of function
In the traditional economy, speed refers to the frequency to which money changes hands; It is an indirect indicator of economic activity. For Bitcoin, it follows the frequency to which BTC is treated on the chain. At the start of Bitcoin, the coins frequently moved while the traders, the first adopters and the amateurs tested its use cases. During the main bull races, such as those in 2013, 2017 and 2021, the transaction activity increased, the BTC circulating quickly between wallets and exchanges.
Today it has changed. Over 70% of the BTC did not move in a year. Transactional unsubscribe has slowed down. To its nominal value, it might seem to reduce use. But that reflects something else: conviction. Bitcoin is treated as a long -term asset, not just a short -term currency. And this change is mainly motivated by institutions.
Institutional adoption locks the offer
Since the launch of us, the ETF Bitcoin, in 2024, the institutional assets have skyrocketed. In mid-2025, the ETF spots contain more than 1.298 million BTC, or about 6.2% of the total traffic supply. When you include business treasury bills, private companies and investment funds, the total institutional assets is around 2.55 million BTC approximately 12.8% of all bitcoins in circulation. These assets remain largely static, stored in cold wallets in the context of long -term strategies. Companies like Strategy and Tesla do not spend their bitcoin; They hold it as a strategic reserve.
It is bullish for rarity and price. But this also reduces speed: fewer circulating coins, fewer transactions that occur on the chain.
Use of the chain is increasing and more difficult to see
It is important to note that the speed on the chain does not capture all the economic activity of Bitcoin.
Chain speed tells only part of the story. More and more, the real economic activity of Bitcoin occurs disabled the basic layer and traditional external measurements.
Take the Lightning network, the Bitcoin layer 2 scaling solution that allows fast and low cost payments that completely bypass the main chain. From the streaming of micropaies to cross -border funds, Lightning makes bitcoin usable in daily scenarios, but its transactions do not appear in speed metrics. In mid-2025, public lightning capacity exceeded 5,000 BTC, reflecting an increase of almost 400% since 2020. Private channel growth and institutional experimentation suggest that the actual number is much higher.
Likewise, Bitcoin wrapped
Allows you to circulate BTC through Ethereum and other channels, fueling the protocols DEFI and Finance Tokenized. In the first half of 2025 only, WBTC’s supply increased by 34%, a clear signal that bitcoin is deployed, not in sleep.
And then there is custody: institutional wallets, storage of cold ETF and multisig cash tools allow companies to keep the BTC safely, but often without moving it. These parts can be economically significant, but they do not contribute anything to the speed on the chain.
In short, Bitcoin is probably more active than it seems, it happens just apart from traditional speed measurements. Its usefulness moves to new layers and platforms – payment rails, intelligent contract systems, return strategies, of which no registration in traditional speed models. As Bitcoin evolves towards a multilayer monetary system, we may need new ways to measure its momentum. Backing on the speed on the chain does not necessarily mean that use slows down. In fact, it could just mean that we are looking in the wrong place.
The compromise behind a low speed
Although slow speed reflects conviction and long -term outfit, it also presents a challenge. Fewer chain transactions mean fewer costs for minors: an increasing concern after the reduction of half of 2024, which rewards block rewards. Bitcoin’s long -term security model depends on a healthy cost market, which in turn is based on coherent economic activity.
There is also the question of perception. A network where coins rarely move can start to look like a static safe rather than a dynamic market. This can strengthen the thesis of “digital gold”, but weakens the vision of bitcoin as usable money.
This is the basic design voltage: Bitcoin aims to be both a reserve of value (Digital gold) and a means of exchange (Peer to peer cash) . But these roles are not always aligned. Speed is the measurement of this thrust and this traction, this continuous fight between preservation and utility, and how Bitcoin will sail not only the models of use, but its role in the broader financial system.
A sign of maturity
In the end, the fall speed does not mean that Bitcoin is used less. This means that it is used differently. As Bitcoin gains value, people are more likely to save it than spending it. As adoption increases, the infrastructure moves away from the chain. And when institutions enter, their strategies focus on preservation, not traffic. The Bitcoin network is evolving. The speed does not disappear; It is silent, reshaped by a base of changing users and new layers of economic activity.
If Velocity gets closer again, it could mark a resurgence of transactional use; More expense, more movements, more involvement in retail. If it remains low, it suggests that the role of Bitcoin as a guaranteed macro takes a firm root. Anyway, Velocity offers a window on the future of Bitcoin. Not like a room to spend, but as an asset on which to rely.
