Bitcoin network activity hits a one-year low, but long-term accumulation addresses still increase significantly

Odaily Planet Daily News: CryptoQuant’s latest analysis shows that the Bitcoin network activity index has fallen to 3760, a 15% drop from its historical high in November 2024, hitting a new low in a year. The index comprehensively measures multiple indicators such as the number of active addresses, number of transactions, block size and transaction fees. Daily transaction volume fell from a peak of 734,000 to 346,000, a drop of 53%; the number of unconfirmed transactions in the Bitcoin transaction pool (mempool) dropped sharply from 287,000 in December 2024 to 3,000, a drop of nearly 99%, to the lowest level since March 2022. The analysis pointed out that the decline in Bitcoin network activity was mainly due to a sharp drop in the use of the Runes Protocol, with its average daily usage falling from 802,000 times in April 2024 to 10,000 times currently. However, CryptoQuant analysts believe that the decline in network activity may not directly affect Bitcoin price movements. The data shows a significant increase in long-term accumulation addresses, which historically tends to foreshadow an increase in Bitcoin prices, reflecting the market's recognition of Bitcoin as an investment asset and store of value. (Coindesk)