Bitcoin Network Activity Plummets to Record Levels

Activity on the Bitcoin network has dropped to its lowest level since November 2010, according to Cointelegraph with reference to data from IntoTheBlock.

Experts noted that the total number of active wallets has reached multi-year lows. On June 27, 2024, there were 614,770 active addresses registered, which is the lowest number since December 2018.

Bitcoin Network Activity. Data: Cointelegraph.

“The lack of retail trading is likely reducing Bitcoin wallet activity as memcoins attract more speculators than other cryptocurrencies,” the report said.

Analysts also explained that the decrease in the active address ratio indicates the absence of buying and selling of the asset, “this indicates a phase of market consolidation.”

IntoTheBlock expert Juan Pellicer believes that Bitcoin’s update to its all-time high was due to institutional players, not retail investors.

“The broader economic environment may have played a role in retail investors not making as many crypto investments as they did in the past,” Pellicer said.

In addition, he believes that the drop in activity comes as investors prepare for the market’s whales to start moving. He noted that Mt. Gox plans to begin making payments to creditors in July 2024.

Source: Cryptocurrency

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