Activity in the Bitcoin Network Crashed: Last Seen in 2010

The number of weekly active addresses on the Bitcoin blockchain has dropped to levels not seen since 2010.

According to IntoTheBlock, the rate of active Bitcoin addresses has fallen to its lowest level since November 2010. While the weekly active wallet rate decreased to 1.22% in June, the highest rate was recorded as 1.32%. These numbers were last seen in November 2010.

Big drop in active wallets

The number of active wallets has also reached multi-year lows. 614,770 active wallets were recorded during the week of May 27. This is the lowest figure since December 2018. A decrease in the active address ratio indicates a decrease in trading activities and a phase of market consolidation.

IntoTheBlock senior researcher Juan Pellicer attributes the decrease in mobility in Bitcoin's network to the decrease in the number of individual users.

Pellicer said, “This year, a new price record was broken thanks to institutional capital, not retail investors. “The reason why retail investors are not investing in crypto as much as in the past may be due to general economic conditions,” he said.

Meanwhile, the bankrupt Bitcoin exchange Mt. Gox's bankruptcy administration plans to repay the exchange's creditors next month. The German government has also sold tens of millions of dollars worth of Bitcoin in recent weeks.

“Due to this density, most bearish transactions occur outside the blockchain, which does not significantly affect the address statistics on the blockchain,” Pellicer said.