According to Odaily, data from Glassnode reveals that Bitcoin's active addresses have recently seen substantial fluctuations. Following the halving in April 2024, the number of active addresses significantly decreased due to soaring transaction fees and network congestion. This increase in fees is partly due to the emergence of new protocols like Runes, which have impacted Bitcoin's utility in daily transactions, leading to a noticeable decline in network activity.
Historically, active addresses have been a reliable indicator of market phases. For instance, data from 2022 showed that active addresses were stagnant, consistent with the typical bear market pattern observed in past cycles. Bitcoin's market strength is cyclical, usually experiencing a period of reduced activity, followed by a resurgence as market conditions improve.
However, it's worth noting that despite the current number of active addresses dropping to a low not seen since 2019, Bitcoin has returned to near its historical high point.