Data shows that the number of BTC active addresses has been steadily declining since its peak in 2021 during the bull cycle. Despite BTC’s notable upward performance this cycle, fewer wallets appear to be interacting with the network, which is an indication of fading on-chain participation.
In 2021, BTC’s active addresses reached a high of 1.5 million, but the figure has since fallen to 740,000 addresses. This steady decline in active addresses raises concerns about the sustainability of the current rally.
