Bitcoin's daily active addresses are trending downwards

09 Jul, 2019 | Updated: 09 Jul, 2019
by David Robb
Bitcoin
Bitcoin's daily active addresses are trending downwards

The number of daily active addresses on the Bitcoin network has fallen recently. Despite the return of the bull market, the figure has dropped to levels seen back in April, when the price was just above $4,000.

 The most recent data from Coinmetrics shows that the number of BTC addresses that were involved in a transaction on July 7 was just over 834,000. The previous day saw just over 614,000 active addresses, which was the fourth-lowest figure recorded in the past three months.

Image from Gyazo

As the Bitcoin price began to rise back in April, the number of daily active addresses also started to increase. The total was over 1 million a few weeks ago, when BTC was trading near its recent high price of just under $14,000.

However, the trend seems to have reversed since then. The number of BTC addresses participating in transactions started to decline as the price saw a major retracement from the peak, and the turnaround of the last week hasn't done anything to change this.

It's unclear so far if this trend will have any effect on the BTC price. Back in 2017, the bull run was strongly correlated with on-chain activity, particularly in the final months leading up to the ATH price. However, there was at least one brief trend downwards. The number of daily active addresses decreased throughout August and September, during which time the price continued to increase, before a slight pullback in October.

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