Bitcoin Activity Plummets: New & Active Addresses Both Down 40%+ Since 2021

bitcoinistPublished on 2026-02-20Last updated on 2026-02-20

Abstract

Bitcoin on-chain activity has significantly declined, with both Daily Active Addresses and Network Growth dropping over 40% compared to February 2021. According to Santiment, the number of unique daily active addresses currently stands at 650,000 (down 42%), while new address creation—measured by Network Growth—is at 291,000 (down 47%). This decline persisted throughout 2025 despite Bitcoin reaching new all-time highs, forming a bearish divergence between market cap growth and network utility. Santiment suggests these metrics must show recovery for a sustained bullish rally, though the current low activity does not necessarily signal a long-term bear market. Bitcoin's price remains sideways near $66,400.

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

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Related Questions

QWhat are the two key Bitcoin on-chain indicators discussed in the article that have seen a sharp decline?

AThe two key indicators are Daily Active Addresses and Network Growth.

QHow much has the Daily Active Addresses count decreased compared to February 2021?

AThe Daily Active Addresses count has decreased by 42% compared to February 2021.

QAccording to Santiment, what does the decline in these on-chain metrics NOT imply for Bitcoin?

AThe decline does not imply that 'crypto is dead' or that Bitcoin is entering a multi-year bear market.

QWhat specific event does Santiment suggest is needed for a 'true long-term relief rally' in crypto?

ASantiment suggests that a true long-term relief rally will begin when metrics like active addresses and network growth start to rise.

QWhat was the value of the Network Growth indicator at the time of the article, and how does this compare to five years ago?

AThe Network Growth indicator was at a value of 291,000, reflecting a 47% drop compared to five years ago (February 2021).

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