Bitcoin on-chain data shows both the Daily Active Addresses and Network Growth indicators have seen sharp drops compared to five years ago.
Wallet-Related Bitcoin Metrics Have Declined In Recent Years
As highlighted by on-chain analytics firm Santiment in an X post, there is a staggering difference between the level of activity on the Bitcoin network today and February 2021.
There are several on-chain metrics that can be used to gauge blockchain activity, but two in particular are of focus here: the Daily Active Addresses and Network Growth.
The first of these measures the total number of BTC addresses that are coming online every day. A wallet is said to come ‘online’ when it participates in some kind of transaction activity on the network. Thus, the Daily Active Addresses essentially tracks the unique daily count of addresses making at least one transfer on the network.
The other indicator, the Network Growth, tells us about the amount of addresses that are coming online on the blockchain for the first time. In other words, it tracks the amount of new addresses joining the network every day.
Now, here is the chart shared by Santiment that shows the trend in the Daily Active Addresses and Network Growth for Bitcoin over the last several years:
Both the metrics appear to have declined in recent years | Source: Santiment on X
As displayed in the above graph, both the Bitcoin Daily Active Addresses and Network Growth witnessed a significant drop at the start of 2024. The former made some recovery as the cryptocurrency observed its bull rally in the second half of the year, but the latter still remained at relatively low levels despite a jump.
In 2025, both indicators again slumped and took to sideways movement, despite the fact that Bitcoin explored fresh highs. Santiment noted that “there was a clear bearish divergence that had been forming throughout 2025 as market caps continued to hit new heights while Bitcoin’s utility declined.”
During the recent market downturn, the indicators have gone a notch lower. Currently, there are 650,000 unique addresses interacting on the blockchain per day, which is down 42% compared to February 2021, five years ago. Similarly, the Network Growth is sitting at a value of 291,000, reflecting a 47% drop for the same window.
So, what does the sharp drop in activity mean for Bitcoin? According to the analytics firm, it doesn’t imply that “crypto is dead” or that the digital asset is entering a multi-year bear market. That said, the return of bullish winds could still depend on the trend in the network metrics. As Santiment explained:
A justification for crypto beginning to see a true long-term relief rally will be when metrics like active addresses and network growth begin to rise.
BTC Price
Bitcoin continues to move sideways as its price trades around the $66,400 level.
The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView