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Bitcoin Active Addresses at Lowest Number Since April 2020
The decline shows decreasing active user participation on the blockchain network, possibly a sign of weak demand.
Updated Mar 6, 2023, 3:10 p.m. Published Jul 1, 2021, 6:20 p.m.
As cryptocurrency markets struggle to gather upside traction, new data shows a declining number of bitcoin active addresses on the blockchain network.
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- The seven-day moving average of bitcoin active addresses – ones active on the network as sender or receiver – fell to 758,165 on Wednesday, the lowest since April 2020, per data provided by blockchain analytics firm Glassnode.
- "The decline in active user participation is a sign of weak demand," Charlie Morris, chief investment officer at ByteTree Asset Management, said. "The hype cycle is over for now, and the market is unable to attract new entrants at the same pace."
- The seven-day average of the daily transaction count tracked by Glassnode has also dipped below 300,000 for the first time since March 2020.
- Network usage affects the demand for cryptocurrency and can influence its price.
- "When there's greater usage, there's more demand for the cryptocurrency, and that drives the price up," Philip Gradwell, chief economist at the blockchain intelligence firm Chainalysis, told CoinDesk last year.
- The count of bitcoin active addresses led the cryptocurrency higher in the final quarter of 2020.
- The cryptocurrency is trading 5% lower on the day at $33,200 at press time, having failed to keep gains above $36,000 earlier this week.
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What to know:
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- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
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Coinbase Sees Crypto Recovery Ahead as Liquidity Improves and Fed Rate Cut Odds Climb
The crypto exchange also took note of a so-called AI bubble that continues to go strong and a weaker U.S. dollar.
What to know:
- Coinbase Institutional is seeing a potential December recovery in crypto, citing improving liquidity and a shift in macroeconomic conditions that could favor risk assets like bitcoin.
- The firm's optimism is driven by rising odds of Federal Reserve rate cuts, with markets pricing in a 93% chance easing next week, and improving liquidity conditions.
- Several recent institutional developments, including Vanguard's crypto ETF policy reversal and Bank of America's greenlighting of crypto allocations, have contributed to bitcoin's rebound from recent lows.
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