📉 Bitcoin’s network activity looks very different today than it did during the peak of the 2021 bull market. In May 2021, the Bitcoin network was averaging roughly 1.12M active addresses per day and nearly 489K new wallets being created daily. Today, those figures have fallen to approximately 624K active addresses and 278K new wallets per day, representing declines of about 44% and 43%, respectively.

📊 Active addresses are commonly used as a measure of how many unique participants are transacting on the network, while network growth tracks the creation of new addresses interacting with Bitcoin for the first time. Both metrics suggest that Bitcoin is attracting fewer new participants and generating less day-to-day transactional activity than it did during the height of retail enthusiasm five years ago.

🏦 Despite Bitcoin’s price remaining well above its 2021 levels for much of the current cycle, on-chain participation has not kept pace. One reason may be the growing influence of spot ETF’s and institutional investment vehicles, which allow investors to gain exposure to Bitcoin without directly moving coins on-chain or creating new wallets.

🥱 At the same time, many long-term holders have become increasingly passive, choosing to store their assets rather than transact frequently. The result is a network that remains highly valuable but less active than it was during the retail-driven frenzy of 2021. Historically, this isn’t necessarily a bearish indicator like you may think at first glance. Often times, volatility (in either direction) is what sparks $BTC activity to rise. And this decline in activity is moreso due to sideways movement and increased crowd interest in equities and precious metals as of late.

🔗 Track how several of Bitcoin’s top indicators look with this dashboard of Santiment’s best here!