Bitcoin Active Addresses See Low Demand Despite Price Rally

• The CryptoQuant post points out that the market activity has changed rapidly after the bottom formed during the previous cycles.
• The relevant indicator here is the “active addresses,” which measures the daily total amount of Bitcoin addresses that are participating in some transaction activity on the chain.
• The Bitcoin active addresses metric has seen some increase with the latest rally in the price of Bitcoin, but the rise has still not been too significant.

Bitcoin Active Addresses

The CryptoQuant post points out that market activity rapidly changed after the bottom formed during previous cycles. An important indicator to measure this change is “Active Addresses”, which tracks daily amount of Bitcoin transactions between unique users.

Recent Market Activity

Recent market activity suggests a low demand for Bitcoin as only few users are making transfers on blockchain at a given time. However, when Bitcoin prices become volatile, more investors take part in trading activity and active address value increases accordingly. A recent example of this can be seen around FTX collapse where active address values increased with sudden price movements and then dropped again when prices stabilised.

Bitcoin Active Address Chart

The chart below shows active address trend over last few years: Looks like active address hasn’t moved much recently | Source: CryptoQuant As shown in this graph, active address had decreased during bear market but there has been some improvement recently with new rally in Bitcoin’s price. But still, it hasn’t been too significant yet compared to previous cycles at a similar stage.


Overall, demand for Bitcoin seems to be returning slowly as indicated by increased number of unique user transactions taking place on blockchain lately due to volatile price movements in cryptocurrency markets. Although not very significant yet compared to earlier stages of crypto cycle, current level of activity suggests possibility that demand may continue increasing as time passes by if prices remain volatile enough for investors to get interested in trading them actively again on blockchain network.

Crypto Bonus Offer

Don’t wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today! BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? 570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Play Now!

Bitcoin Active Addresses See Low Demand Despite Price Rally
Scroll to top