- Although BTC rallyed itself up to $ 97k, the activity on the chains remained in particular in the midst of the price.
- Six important reasons explain why the adoption and the use of Bitcoin are left with the recent price profits.
While Bitcoin [BTC] Has experienced long -term profit at his price charts in recent months, the network has had difficulty.
Although Bitcoin has risen to $ 97,000, the activity in the chain remains relatively low.
Important network statistics, such as the number of active addresses and transactions, surprisingly do not reflect the general market enthusiasm.
In fact, the number of active addresses has difficulty staying above 1,000 and only reaching this level three times in recent months.
Source: Cryptuquant
At the time of the press, active addresses float around 958.74K. This raises the question: why does this happen?
According to Alfractal Analysis struggles the activity on the Bitcoin chains for 6 important reasons.
Six reasons for the stagnant activity on the Bitcoin chains
To begin with, the current price is powered by external factors.
As such, the Bitcoin market and value are more influenced by capital inflow by spot ETFs and institutional importance, and not by real blockchain use. This is proven by the continuous accumulation of micro strategy, metaplanet and black rock’s spot ETFs.
Secondly, the price volatility of BTC has been unusually low.
After weeks of consolidation between $ 92k and $ 95k, the price promotion needed to activate an active wallet movement was missing. In such circumstances, many holders simply choose to wait.
That is why there are fewer incentives for investors to act, resulting in fewer transactions on chains.
Thirdly, Bitcoin experiences artificial exchange volumes, where some exchange volumes are probably blown up. The bloated volume creates a misleading feeling of activity, while the real network use remains modest.
Source: Alfractaal
Moreover, the use has shifted elsewhere.
Other networks such as Ethereum [ETH]Solana [SOL]And the basic, commitment and memecoin activity attract. The speculative use therefore gradually goes to other chains where there is a lot of traffic.
For example, the Solana chain has become dominant for memecoins, while Ethereum is on the exhaust. With use to other chains, Bitcoin is struggling considerably.
That said, Bitcoin’s profession has also taken a backseat as a practical payment network.
Prices are therefore growing faster than network activity. Usually this is untenable and the prices can be confronted with a correction to meet the actual demand.
Finally, the acceptance of second layers such as Lightning Network is growing faster. With more transactions that shift off-chain, especially to lightning, minstet activity seems lower.
This positions the crypto in a challenging situation in which L2 sees more demand and use. In conclusion, it is essential to note that the high price of Bitcoin does not necessarily mean an increased blockchain use.
We are therefore witnessing a shift in which BTC is treated more as a financially active, while dynamics take place on the chain elsewhere.
What does this mean for BTC?
In the end, only price does not tell the full story. The strong performance of Bitcoin in the graphs have not translated into an increased network use.
This shift suggests that BTC is increasingly being treated as a macro -financial active – not as a decentralized currency built for daily use.
Historically, network growth – especially from retail users – played a crucial role in maintaining Bitcoin rallies. But now, with institutions that largely dominate streams and retailing on the sidelines, it is more difficult to maintain the momentum.
Unless the question is on the chain, the price growth of BTC can get structural limits.
