Bitcoin network is losing active users despite growing transaction volumes.

Analysts have noted a worrying divergence between the price and key Bitcoin network metrics. They note that the 30-day average number of active addresses has fallen to an 11-month low. Meanwhile, the total number of transactions has reached its highest level since early 2025. This discrepancy signals the shaky foundations of the current market.

They believe the increase in network activity isn't due to an expanding user base. The main driver is new protocols, such as Runes, which allow for token minting. This process often involves thousands of small transactions from a limited number of users or even bots. As a result, the metric is artificially inflated, while actual user participation declines.

A key indicator—the number of active addresses—continues to decline. This indicates a decline in the number of actual network participants. Unlike the transaction boom, this decline reflects a genuine weakening of user interest in Bitcoin as a payment tool and store of value.

“The current surge in transactions is attributed to low-quality activity. It's related to speculative experimentation within limited segments of the ecosystem, not mass adoption of BTC. Such distortions in metrics create the illusion of healthy growth, even though fundamental indicators suggest otherwise,” the analysts stated.

Despite a shrinking user base, the BTC price remains near $116,000. However, it is largely driven by speculative hype rather than sustained demand growth. This imbalance makes the market vulnerable to a sharp decline.

A situation in which the price remains high while user activity declines increases the likelihood of a major correction. Speculative protocols are unable to maintain the price over the long term.

Source: cryptonews.net