- The number of weekly active addresses as of May 27 was 614,770
- The ratio now stands at 1.22%, the lowest since November 2010
- Weaker retail participation than in previous cycles is the reason behind Bitcoin's declining wallet activity rate
The active address ratio of the Bitcoin network has significantly decreased, according to data from IntoTheBlock. The ratio now stands at 1.22%, the lowest since November 2010.
Additionally, there are now fewer active wallets overall than there were a few years ago. The number of weekly active addresses as of May 27 was 614,770, which is the lowest amount since December 2018.
There is less activity on the Bitcoin network, as evidenced by the drop in active addresses and wallets. This could be due to a number of things, such as changes in investor sentiment, regulatory changes, or market volatility.
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It is crucial to remember that these numbers might not always indicate a decline in Bitcoin's value or appeal. All they signify is a drop in the quantity of active wallets and addresses, which may be an isolated incident or a sign of a wider pattern.
According to Juan Pellicer, a senior researcher at IntoTheBlock, weaker retail participation than in previous cycles is the reason behind Bitcoin's declining wallet activity rate, as reported by Cointelegraph.
“This year’s run to a new all-time high was driven by institutional capital instead of retail investors. The wider economic situation could have played a role in retail not making as many crypto investments as they’ve done in the past,” Pellicer said.
Bitcoin's one-year price movement
The decline in activity rate coincides with investors preparing for an uptick in whale movements, with the trustee of Mt. Gox scheduled to begin disbursing payments to creditors in July.
It was also observed that some larger holders—including those connected to governments—were involved in sales.
“Due to this concentration, much of the bearish trading activity is being performed offchain, which doesn’t significantly impact onchain address activity statistics,” Pellicer explained.
Investors and analysts keep a close eye on the performance and activity levels of the Bitcoin network because they can offer important insights into the current state of the market and possible future trends.
Bitcoin is still the market leader in cryptocurrency, even with the recent decline in active addresses. At the time of writing, Bitcoin was trading at $61,334 with a 24-hour trading volume up 1.42% at $22.54 billion and a market capitalization of $1.21 trillion, according to CoinMarketCap data.
5 simple ways to make money from crypto
Meanwhile, TheRadar earlier reported cryptocurrencies have become very popular in the last few years and many worldwide are making a living out of them.
Some of the ways to make money from crypto include mining, staking, play-to-earn and participating in air drops.
