• Bitcoin Active Addresses haven’t grown much recently, suggesting a lack of demand for the asset.
• This is measured by the “active addresses” metric which counts unique addresses that participate in some transaction activity on the chain.
• Recent rallies have seen an increase in active addresses, but not to the same levels as previous cycles.

Bitcoin Demand Slower Than Previous Cycles

On-chain data shows demand for Bitcoin has been returning recently, but the rise has been slower than what previous cycles saw at a similar stage.

Measuring Bitcoin Activity with Active Addresses

As pointed out by an analyst in a CryptoQuant post, the market activity rapidly changed after the bottom formed during the previous cycles. The relevant indicator here is the “active addresses,” which measures the daily total amount of Bitcoin addresses that are participating in some transaction activity on the chain. The metric only measures unique addresses, meaning that if an address takes part in multiple transfers in a single day, it’s still counted only once. It also accounts for both senders and receivers when measuring this activity.

High Values Show Market Interest

When the value of this metric is high, it suggests a large number of users are making transactions on the network right now – indicating higher levels of market interest and demand for Bitcoin. On the other hand, low values imply not many people are engaging with trading on blockchain currently – suggesting weaker market demand for Bitcoin at present.

Recent Trends Show Low Demand

The chart below shows how active address values have changed over recent years:

Looks like the value of this metric hasn’t moved much recently | Source: CryptoQuant

As shown above, active address values had sunk to relatively low levels during bear markets – likely due its lack of volatility or potential profits from trading at those times – yet recently there has been some improvement recorded against these figures with price rallies showing increases here too. However, these rises still haven’t reached anywhere near their earlier peak levels as seen previously in past cycles.

Conclusion

Overall trends suggest current demand for Bitcoin is lower than what was seen previously at similar stages within crypto cycles – however it may be too soon to draw any definite conclusions given recent movements have only just begun to pick up again following bear markets lows seen not so long ago.