Bitcoin Activity Reaches Lowest Point Since 2010

The activity levels of Bitcoin addresses have sunk to their lowest since November 2010, as reported by IntoTheBlock’s onchain data.

In June, the ratio of weekly active wallets fell to just 1.22%, with a brief peak at 1.32%. Such low engagement levels were last observed in November 2010.

Moreover, the total count of active wallets has dwindled to figures not seen in years. Specifically, during the week of May 27, there were only 614,770 active wallets, marking the lowest since December 2018.

A decline in the active address ratio reflects a reduction in transaction activity among Bitcoin holders, pointing to a period of market stabilization.

Juan Pellicer, a senior researcher at IntoTheBlock, notes that the recent decrease in wallet activity is due to diminished involvement from retail investors compared to previous cycles.

“Institutions, not retail investors, fueled the rally to this year’s record highs,” Pellicer explained.

He also suggested that the broader economic climate might be deterring retail investors from engaging as heavily in cryptocurrency investments as before.

As investors prepare for a potential uptick in major transactions, including the upcoming distribution of funds by the Mt. Gox trustee this July, the activity rate continues to wane.

Additionally, significant selling movements have been observed among large holders, including those associated with governments.

Pellicer further mentioned, “A lot of the bearish market actions are happening offchain, thus not affecting the onchain address activity figures significantly.”

Are Runes struggling?

Contrary to expectations, the introduction of Runes, a new fungible token protocol launched alongside Bitcoin’s latest halving in April, has not sustained high transaction fees. While initially boosting miners’ earnings on the day of the halving, fees have since returned to levels seen before the event.

Furthermore, miner reserves are at their lowest in 14 years, reflecting the minimal amount of new Bitcoin held by miners.

Pellicer commented to that while Runes has seen a decrease in activity, it’s likely just a temporary downturn due to the cyclical nature of such assets.

Meanwhile, the crypto spotlight has shifted towards memecoins and celebrity-backed tokens, which are drawing in speculators aiming for higher returns.

Despite Bitcoin’s well-known volatility, its current situation is relatively stable compared to the highly speculative lower-cap memecoins.

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