The Bitcoin Network Shows a Historic Decline in Active Addresses
Bitcoin is currently going through a critical phase. Five years after the euphoric peak of 2021, onchain data reveals a clear slowdown. Behind the price stabilization, the dynamics of the crypto network raise questions. More details below!
In brief
- Bitcoin network activity has dropped sharply since 2021, weakening the crypto market’s momentum.
- BTC price rises without clear support from real and measurable adoption.
Bitcoin: a 42% drop in active addresses since 2021
Figures published by Santiment provide a clear picture of network activity: Bitcoin is losing intensity.
- Unique active addresses have declined by 42% since February 2021.
- New address creation has dropped by 47% over the same period.
During the previous bull cycle, Bitcoin’s expansion was based on an explosion of participation. Each acceleration phase was accompanied by an influx of users and a rise in transactions.
Today, the picture changes. Activity slows down while market capitalization tries to approach new highs in 2025. This gap creates a divide between valuation and real usage of the crypto network.
For bitcoin, adoption remains the main fuel. Without growth in active addresses, the market structure therefore loses depth.
Bearing Divergence: BTC Price Moves Forward Without Network Support
The Long-Term Holder Net Unrealized Profit and Loss indicator (NUPL) stands at 0.36. This means long-term holders maintain latent profits. The overall sentiment confirms this fragility. The Crypto Fear & Greed Index remains stuck in extreme fear territory, despite a rebound from February lows near $60,000.
At the time of analysis, bitcoin trades around $64,401. The flagship crypto asset still shows a drop of about 24% since the beginning of the year.
A return to the $72,000 to $76,000 zone might attract buyers. However, without a clear rebound in active addresses and network growth, this movement could risk trapping the market in a bull trap.
Thus, the crypto market may be entering a phase of natural selection. Future cycles could reward networks capable of proving their real utility beyond speculation. For Bitcoin, the next impulse will likely come less from trading and more from concrete and measurable adoption.
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.