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Breaking News: Strategy Reports Q1 Results: Over $12 Billion In Red Ink—Here Are The Key Figures
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Breaking News: Strategy Reports Q1 Results: Over $12 Billion In Red Ink—Here Are The Key Figures

Bitcoin Breaks $80,000, But On-Chain Activity Signals A Silent Warning

Keshav Verma
Keshav Verma
Last Updated: May 6, 2026 5:00 am
2 mins read
Bitcoin

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Bitcoin has seen a rally toward the $81,000 level, but on-chain data shows the surge has failed to attract investor attention, with network activity remaining low.

Bitcoin On-Chain Activity Has Dropped To 2-Year Lows

According to data from on-chain analytics firm Santiment, the Bitcoin blockchain has witnessed a drop in indicators related to on-chain activity. The metrics of relevance here are the Daily Active Addresses and Network Growth.

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First, the Daily Active Addresses measures the total number of wallets that are coming online on the network every day. An address is said to come “online” on the network when it participates in some kind of transaction activity, whether as a sender or receiver. As such, the Daily Active Addresses basically tells us about the user activity on the network.

The other indicator of interest here, the Network Growth, deals with activity that’s specifically coming from new users; it measures the total number of addresses coming online on the blockchain for the first time.

Now, here is the chart shared by Santiment that shows how these two metrics have changed for Bitcoin over the past year and a half:

Bitcoin Network Growth Vs Active Addresses
Looks like both metrics have headed down in recent weeks | Source: Santiment on X

As displayed in the above graph, both the Bitcoin Daily Active Addresses and Network Growth have declined over the last few months. While the earlier decline made sense in the context of the bearish market shift, the latest continuation of the downtrend has interestingly arrived despite a price surge in the cryptocurrency.

Currently, there are 531,000 addresses participating in network transaction activity and 203,000 new addresses popping up daily. This is the lowest that both counts have been in about two years.

Generally, notable price rallies tend to attract network participation and adoption as traders find such phases to be exciting. Clearly, though, the latest one hasn’t been able to do that, at least not so far. Santiment noted:

Instead, the price is climbing on relatively thin participation, meaning a smaller group of players is responsible for pushing the market higher, rather than a broad wave of new and returning users flooding in.

Historically, price surges that have failed to gather enough attention have been likely to fizzle out. Since the latest rally isn’t currently being backed by mass user participation, its foundation may be shaky.

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Bitcoin Breaks $80,000, But On-Chain Activity Signals A Silent Warning

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That said, the current low network activity could also actually act like a contrarian signal. As the analytics firm explained:

Paradoxically, 2-year lows in network activity can actually signal that Bitcoin is coiled for a much bigger move upward. Activity bottoms often mark the end of apathy, not the continuation of it.

BTC Price

At the time of writing, Bitcoin is trading around $81,250, up 7% over the last week.

Bitcoin Price Chart
The price of the coin has been marching up recently | Source: BTCUSDT on TradingView
Featured image from Dall-E, chart from TradingView.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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