Bitcoin Daily Active Addresses and Network Growth Down ~40% Since 2021
On-chain analytics from Santiment show a significant decline in Bitcoin wallet activity versus February 2021. Two metrics — Daily Active Addresses (unique addresses transacting each day) and Network Growth (new addresses created) — have fallen sharply. Daily Active Addresses currently average about 650,000 per day (down ~42% from Feb 2021), while Network Growth is roughly 291,000 (down ~47%). Both metrics plunged at the start of 2024, partially recovered during the 2024 bull rally, then slid again through 2025 and into the recent market downturn. Santiment warns that rising active addresses and network growth will be key signals for a sustainable long‑term relief rally, though the firm does not interpret the decline as proof that crypto is "dead." Bitcoin price is trading near $66,400 at the time of reporting. Primary keywords: Bitcoin, Daily Active Addresses, Network Growth, on-chain metrics. Secondary/semantic keywords included for SEO: BTC activity, wallet metrics, blockchain utility, market rally, on-chain analytics.
Neutral
The drop in Daily Active Addresses and Network Growth is a meaningful negative signal for Bitcoin’s on-chain utility and organic user engagement, which can weigh on sentiment and reduce speculative conviction. Historically, sustained declines in active addresses have coincided with weaker price performance or muted rallies because fewer participants are transacting, reducing velocity and on-chain demand. However, this report alone is not strictly bearish for price: Bitcoin has previously reached new price highs amid declining or flat on-chain activity (reflecting concentration of holdings, derivatives-driven rallies, or macro liquidity). Santiment’s note that metric recovery would support a durable rally implies these indicators act as confirmation rather than direct drivers. Short-term impact: likely increased caution and reduced retail-driven volume; potential for sideways to volatile price action as traders await on-chain confirmations or macro catalysts. Long-term impact: if active addresses and network growth remain depressed, it could limit the sustainability of future rallies and reduce the probability of organic, broad-based price appreciation. Conversely, a clear trend reversal in these metrics would be a bullish confirmation and could attract renewed participation. Traders should monitor on-chain address trends alongside exchange flows, derivatives skew, and macro liquidity events to gauge probability of trend continuation or reversal.