Bitcoin has hit $106K, but active wallet addresses have fallen 28%, signaling a weaker retail presence during the price surge.
Despite all-time highs, Bitcoin's Network Activity Index has dropped 33%, showing declining usage beneath market momentum.
Mempool transactions have plummeted 98% since 2022, suggesting off-chain migration or fading organic demand despite price growth.
Bitcoin rebounded to an all-time high of $106.8K during mid-2025 but network active addresses dropped. According to a report by CryptoQuant, address activity declined from over 1.15 million at the end of 2023 to a measly 830,000 by June 2025, indicating a decreasing association between price action and user engagement.
Between late 2023 and January 2023, expansion followed Bitcoin's price surge from less than $20,000 to about $45,000.In the process, the address activity enabled positive price action, causing a coordinated rush. That convergence began to break down in early 2024.
Network divergence happens in real time
According to a report by CryptoQuant, address activity also bifurcated in March 2024, as Bitcoin was climbing from $45K to $75K and later broke $90K. The bifurcation has continued in 2025, with price highs being unaccompanied by corresponding user action.
https://twitter.com/cryptoquant_com/status/1938898420845916285
This divergence intensified after March 2025, with active addresses falling from 950K to 830K as the price went above $106K. The drop suggests fewer retail participants or greater wallet concentration in price appreciation. Importantly, the 14-day SMA of active addresses still forms lower lows, indicating structural weakness. The declining user base is sharply contrasted by a historically strong price trend.
Activity Index Breakdown Challenges Bulls
The Bitcoin Network Activity Index fell from over 4.8K in early 2024 to below 3.2K by June 2025. This drop happened despite Bitcoin's lofty values, supporting the idea of fragmented fundamentals.
Between January 2023 and January 2024, the index grew alongside the price, indicating healthy utilization. But the index has since formed lower highs, suggesting declining organic activity even as valuations remain bullish.
The 365-day moving average of the index is now trending around 3.6K—its lowest in over two years. Long-term usage metrics confirm that the recent drops are part of a broader weakening in core engagement.
Bitcoin Mempool Empties as Transactions Fade
The chart on mempool activity reveals a dramatic shift: transaction volumes have collapsed nearly 98% since peak congestion in 2022. Back then, over 1 million transactions were pending daily, mainly in low-fee cohorts.
As Bitcoin's price recovered past $60K into 2025, mempool volume dropped under 25,000 daily. The sharp decline, especially in high-fee activity, reflects either network optimization or user migration to off-chain solutions.
This phase points to a structurally leaner Bitcoin network where price can surge without bottlenecks. However, it also challenges the assumption that rising prices always reflect growing organic demand.
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