Mining Activity Intensifies Despite Weak On-Chain Demand
Bitcoin mining difficulty is poised to reach a record high of 126.95 trillion, reflecting a substantial increase in the computational power securing the blockchain. The anticipated 4% rise in mining difficulty is expected to finalize around midnight UTC, marking a significant milestone in the network’s evolution.
Bitcoin’s seven-day average hashrate has surged from 840 EH/s to 918 EH/s over the past two weeks, nearly reaching the all-time high of 925 EH/s recorded earlier. This upward momentum indicates renewed miner confidence and intensified participation, even amid low transaction activity.
Network Security Strengthens
The Bitcoin network automatically adjusts mining difficulty every 2,016 blocks — roughly every two weeks — to ensure block production remains steady at one block every 10 minutes. The projected increase to 126.95T will surpass the previous record of 123T, which was set earlier in the year.
Difficulty was just 109T at the beginning of 2025, underscoring a significant 16% increase year-to-date.
A higher difficulty level means it’s more challenging to solve the cryptographic puzzles required to mine new blocks, making the network more secure against potential attacks.
Low Fees Reflect Dormant Demand
Despite the soaring hashrate and difficulty, Bitcoin’s transaction fees remain near historic lows, averaging just 2 sat/vB (around $0.30). This suggests weak on-chain activity, even as miners continue to allocate more resources to mining operations.
High hashrate with low fees indicates a competitive mining environment where long-term conviction — rather than immediate transaction profits — is driving participation.
What This Means for Miners and the Market
- The surge in mining difficulty signals growing miner confidence in Bitcoin’s long-term value.
- Transaction fee stagnation highlights a lull in active usage, possibly due to reduced trading or less network congestion.
- The rise in hashrate suggests global mining infrastructure continues to scale, even after the April 2024 halving event reduced block rewards by 50%.
Network Strength Grows Despite Quiet Blockchain
With Bitcoin’s mining difficulty approaching 127T and hashrate nearing an all-time high, the network’s security and resilience are reaching new peaks. Although on-chain activity remains muted, the continued investment by miners underscores strong confidence in Bitcoin’s future.