Blockspace Utilization
Last updated
Last updated
Blockspace utilization measures the percentage of available space in Bitcoin’s blocks that is filled by transactions. High utilization rates—when blocks are nearly full—indicate increased demand for blockspace and heightened network activity. When blocks remain consistently full over extended periods, the fee rate becomes more sensitive to sudden surges in demand. This occurs as users with high-urgency transactions compete by bidding higher fees to ensure their transactions are prioritized and included in the next block, thereby driving up the overall fee rate across the network.
Since February 2023, Bitcoin has experienced its longest period of nearly full blocks, with an average blockspace utilization of 99.5%. This surge in demand for blockspace began with the launch of Ordinals, a protocol that introduced non-fungible and fungible tokens to the Bitcoin network. The introduction of additional protocols, such as Runes in 2024, further amplified demand, keeping blocks consistently full. Historically, blocks only reached full capacity during bull markets, but blockspace scarcity has now become a persistent feature of the Bitcoin network. This ongoing scarcity signals continuous growth in network activity and has contributed to increased fee rate volatility, making it more responsive to sudden spikes in demand.
The intensifying competition for blockspace is further reflected in the annual blockspace share—the proportion of blockspace attributed to specific transaction types. In 2023, Ordinals and BRC-20 transactions accounted for approximately 27% of total blockspace. By 2024, the combined share of Ordinals, BRC-20, and Runes transactions had risen to about 41% of the network’s blockspace (as of September). With continued innovation and the development of new use cases on Bitcoin, competition for blockspace is expected to increase further, leading to even more intense fee rate dynamics.
