Bitcoin achieved a record high of $106.8K in mid-2025, yet the number of active addresses declined significantly, indicating a potential decrease in retail interest.
Sharp Price Increase and Activity Decline
According to a report by CryptoQuant, address activity fell from over 1.15 million at the end of 2023 to 830,000 by June 2025. This decline suggests a decreasing connection between price action and user engagement.
Decrease in Network Activity Index
The Bitcoin Network Activity Index dropped from over 4.8K in early 2024 to below 3.2K by June 2025. This downward trend comes despite high prices, indicating fragmented fundamentals.
Mempool Transactions Fade
Mempool transaction volumes have collapsed nearly 98% since peak congestion in 2022. As Bitcoin's price recovered, mempool volume dropped under 25,000 daily transactions, suggesting network optimization or user migration to off-chain solutions.
Thus, the record price of Bitcoin is accompanied by significant declines in address and transaction activity, raising questions about the true market conditions in the cryptocurrency space.
