Bitcoin Transactions At All-Time High, But Active Addresses Collapse: What’s Going On?
Summary
Bitcoin's active addresses have decreased while transaction count has reached an all-time high. The decline in active addresses suggests fewer users are participating in network activity, despite strong market momentum. The rise in transaction count is attributed to a correlation with Bitcoin Inscriptions, which have declined alongside active addresses due to the emergence of the Runes protocol. This protocol, launched alongside the fourth Halving, uses address reuse, accelerating the divergence between active addresses and transaction count. As of now, Bitcoin is trading at around $69,600, down more than 2% over the past week.
