Reason behind Bitcoin’s slumping network activity.
#Bitcoin's [
$WBTC ] network activity has been steadily declining since mid-September despite its price fluctuating within a constrained range, on-chain statistics from CryptoQuant showed.
The cryptocurrency's transactions count indicator, which counts each individual transaction that has ever been made on the Bitcoin network and is calculated using a seven-day tiny moving average, has reached its lowest point since January.
Data from CryptoQuant show that as of October 13th, this number was 266,000, representing a 55% decrease since September 20th.
Pseudonymous CryptoQuant analyst MAC_D explained the cause of the fall in the daily transaction count for
#BTC in a recent report. The analyst claims that this is the case because "there were fewer new investments coming into the
#crypto market, resulting in less liquidity and therefore less price volatility."
When a cryptocurrency asset reports a decrease in the number of daily transactions, this is primarily due to a decrease in the number of daily active addresses on the network. Since September 19, BTC's unique address count as measured by the same seven-day tiny moving average has decreased by more than 15%.
Additionally, since December 2022, the daily total of coins transferred between BTC holders has been at its lowest level.