Despite Bitcoin’s price reaching $97K, its on-chain activity has remained weak. Key metrics such as Active Addresses and transactions have not reflected the market enthusiasm. The number of Active Addresses has only surpassed 1,000 three times in recent months, currently hovering around 958.74K.
According to Alphractal analysis, six reasons contribute to Bitcoin’s stagnant on-chain activity. First, the price increase is driven by external factors like Spot ETFs and institutional interest rather than real blockchain usage. Second, low price volatility has reduced incentives for investors to act, leading to fewer on-chain transactions. Third, some exchange volumes are artificially inflated, creating a misleading sense of activity.
Additionally, usage has shifted to other networks such as Ethereum and Solana, which are attracting DeFi, staking, and memecoin activity. Bitcoin’s appeal as a practical payment network has diminished, with prices growing faster than network activity. The adoption of second layers like the Lightning Network is also growing, shifting transactions off-chain.
This positions Bitcoin as more of a financial asset rather than a decentralized currency for everyday use. Unless on-chain demand increases, Bitcoin’s price growth may face structural limits.
— new from AMBCrypto