Bitcoin’s speed in the chain, how often the coins move, moves to the decade. For some, that is a red flag: Bitcoin has lost impulse? Are you still being used?
In fact, the fall speed can be the clearest sign that Bitcoin is maturing, not stagnating. Instead of circulating as an effective, Bitcoin remains more and more like gold.
A change in function
In the traditional economy, speed refers to the frequency with which money changes hands; It is an indicator of economic activity. For Bitcoin, it tracks the frequency with which BTC is done in the chain in the chain. In Bitcoin’s early days, coins frequently moved as merchants, first users and enthusiasts tested their use cases. During the main bullfights, such as 2013, 2017 and 2021, the transaction activity increased, with BTC flowing rapidly between wallets and exchanges.
Today that has changed. More than 70% of BTC has not moved in more than a year. The transactional rotation has slowed down. To the letter, this might seem decreasing. But it reflects something else: conviction. Bitcoin is being treated as a long -term asset, not only as a short -term currency. And that change is largely driven by institutions.
Institutional adoption blocks supply
Since the launch of the US Bitcoin ETF. UU. In 2024, institutional holdings have shot themselves. In mid -2025, the ETF Spot have more than 1,298 million BTC, approximately 6.2% of the total circulating supply. By including corporate treasure bonds, private companies and investment funds, total institutional holdings are approaching 2.55 million BTC around 12.8% of all bitcoin in circulation. These assets remain static, stored in cold wallets as part of long -term strategies. Companies such as strategy and Tesla are not spending their bitcoin; They hold it as a strategic reserve.
That is optimistic for scarcity and price. But it also reduces speed: less coins circulate, less transactions occur in the chain.
Use outside the chain is increasing and is more difficult to see
It is important to keep in mind that the speed in the chain does not capture all Bitcoin’s economic activity.
The speed in the chain only has part of the story. More and more, Bitcoin’s true economic activity is happening off the base layer and traditional measures outside the part.
Take the Lightning Network, the Bitcoin layer 2 scale solution that allows fast and low -cost payments that omit the main chain completely. From the transmission of micropapas to cross -border remittances, Lightning makes Bitcoin be used in everyday scenarios, but their transactions do not appear in the speed metrics. In mid -2025, the public ray capacity exceeded 5,000 BTC, which reflects an increase of almost 400% since 2020. The growth of private channels and institutional experimentation suggests that the real number is much higher.
Similarly, Bitcoin wrapped
It is allowing BTC to circulate through Ethereum and other chains, feeding Defi protocols and tokenized finance. Only in the first half of 2025, the WBTC supply grew by 34%, a clear sign that Bitcoin is being implemented, not inactive.
And then there is custody: institutional wallets, ETF cold storage and multisig treasury tools that allow companies to keep BTC safely, but often without moving it. These currencies can be economically significant, but they don’t contribute anything to the speed in the chain.
In summary, Bitcoin is probably more active than it seems, it is only happening outside of traditional speed metrics. Its usefulness is changing to new layers and platforms: payment rails, intelligent contract systems, performance strategies, of which they are recorded in traditional speed models. As Bitcoin evolves to a multi -layer monetary system, we may need new ways to measure its impulse. The fall in the speed in the chain does not necessarily mean the use is slowing down. In fact, it could mean that we are looking for the wrong place.
Compensation behind low speed
While slow speed reflects conviction and long -term possession, it also presents a challenge. Less transactions in the chain mean less rates for miners: a growing concern after half of 2024, which reduces the blocking of rewards in half. Bitcoin’s long -term security model depends on a healthy rates market, which in turn depends on consistent economic activity.
There is also the question of perception. A network where coins are rarely move can begin to resemble a static vault instead of a dynamic market. That can strengthen the “digital gold” thesis, but Bitcoin’s vision weakens as usable money.
This is the central design voltage: Bitcoin aims to be a value store (digital gold) and a means of exchange (Effective between pairs) . But those roles do not always align. Velocity is the measure of that thrust and attraction, this continuous struggle between preservation and utility, and how Bitcoin navigates it will not shape not only use patterns, but in their role in the broader financial system.
A maturity sign
In the end, the fall speed does not mean that Bitcoin is used less. It means that it is being used differently. As Bitcoin’s value wins, people are more inclined to keep it than spend it. As adoption grows, infrastructure moves outside the chain. And as the institutions enter, their strategies focus on preservation, not on circulation. The Bitcoin network is evolving. The speed is not disappearing; It is silent, it is reforming by a changing user base and new layers of economic activity.
If Velocity rises again, it could mark a resurgence of transactional use; More expenses, more movement, more retail participation. If it remains low, it suggests that Bitcoin’s role as Collateral Macro is taking firm roots. Anyway, Velocity offers a window to the future of Bitcoin. Not as a currency to spend, but as an asset to build.
