Glassnode: Bitcoin active addresses drop to 5-year low

Glassnode data shows that Bitcoin’s active addresses have seen significant fluctuations recently. After the halving in April 2024, the number of active addresses dropped significantly due to soaring transaction fees and network congestion. This increase in fees, due in part to the emergence of new protocols such as Runes, has impacted Bitcoin’s utility in daily transactions, resulting in a significant drop in network activity. Historically, active addresses have been a reliable indicator of market stage. For example, data from 2022 shows that active addresses are stagnant, consistent with the typical bear market pattern observed in past cycles. Bitcoin’s market forces are cyclical, with there typically being periods of reduced activity and then a resurgence as market conditions improve. However, it is worth mentioning that although the number of active addresses has dropped to its lowest level since 2019, Bitcoin is back near its all-time high. (CryptoSlate)