Despite Bitcoin’s surge to $112K, active address counts remain flat, suggesting weak participation from retail investors during the rally.
The Network Activity Index stays low, reflecting limited blockchain usage even as Bitcoin records a sharp rise to new all-time highs.
Bitcoin’s nearly empty mempool highlights weak transaction flow, confirming minimal retail engagement despite significant upward price momentum.
Bitcoin recently rebounded sharply, rising from below $75,000 to a new all-time high of $112,000. Yet despite this price momentum, on-chain metrics indicate low network engagement, especially from retail investors.
Active Addresses Remain Flat Despite Price Rally
CryptoQuant’s @cryptometugce noted that the number of active Bitcoin addresses fell significantly during the price drop from $110,000 to $75,000. These addresses—used for sending or receiving Bitcoin—did not recover in line with the recent price rebound.
Even as the asset pushed past its previous high, the active address count stayed muted. This divergence points to weak retail participation in the rally, as individual users are typically reflected in address activity. The stagnation suggests the current upward move may be driven more by institutional or algorithmic demand.
Network Activity Index Reflects Overall Weakness
Supporting this view, the Network Activity Index also shows low engagement on the Bitcoin blockchain. This index combines several key metrics, including active addresses, transaction counts, unspent outputs, and block size.
Despite the surge in price, the network has not mirrored this move. The persistent low index value indicates a lack of new wallet interaction and limited blockchain usage. This disparity between price and network metrics underlines the unusual nature of the current rally.
Low Mempool Volume Suggests Fewer Transactions
Further reinforcing the on-chain weakness is Bitcoin’s mempool data. The mempool, which holds unconfirmed transactions awaiting miner validation, remains nearly empty. Although some of this reduction may stem from transaction batching or SegWit, the broader picture suggests limited transfer activity.
When taken together with the other metrics, the low mempool volume confirms weak transaction flow across the network. CryptoQuant noted that such conditions reflect low interest from retail investors, who are often the main drivers of mempool spikes during bullish phases.
Market analysts now turn to macroeconomic trends and central bank policy as possible catalysts for renewed retail involvement. Until then, Bitcoin’s price strength continues without matching network validation.
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