Glassnode data shows that the number of active addresses for Bitcoin has recently experienced significant fluctuations. After the halving in April 2024, the number of active addresses decreased significantly due to the surge in transaction fees and network congestion. The increase in fees is partly due to the emergence of new protocols like Runes, which have affected the utility of Bitcoin in daily transactions and led to a significant decline in network activity.

From a historical perspective, active addresses have always been a reliable indicator of market phases. For example, the data from 2022 shows that active addresses have remained stagnant, consistent with the typical bear market pattern observed in past cycles. The market strength of Bitcoin is cyclical, with a period of reduced activity typically followed by a resurgence as market conditions improve.
However, it is worth mentioning that despite the fact that the number of active addresses has dropped to the lowest point since 2019, Bitcoin has returned to near its all-time high. (CryptoSlate)