BTCC / BTCC Square / Bitcoinist /
Bitcoin’s Comeback Accelerates Despite Tepid Network Activity – Is a Correction Looming?

Bitcoin’s Comeback Accelerates Despite Tepid Network Activity – Is a Correction Looming?

Author:
Bitcoinist
Published:
2025-06-28 08:00:28
13
1

Bitcoin bulls are back in the saddle as prices claw their way up—but the blockchain's heartbeat tells a different story.

Price pumps while nodes nap

The king of crypto is posting gains that would make a Wall Street hedge fund blush (if they weren't busy shorting it). Yet transaction volumes and active addresses linger near yearly lows—the kind of divergence that makes traders reach for their antacids.

Miners vs. hodlers: Who blinks first?

With hash rate hovering near all-time highs but fees stuck in the basement, the network's security budget depends increasingly on speculators' optimism. Perfectly sustainable—just like negative-yielding bonds were in 2020.

The trillion-dollar question: Is this the calm before another parabolic rally or the ghost town before a liquidity crunch? Either way, your friendly neighborhood crypto journalist will be here with popcorn.

Bitcoin Price Recovers But Network Activity Vanishes

According to a recent CryptoQuant Quicktake post by contributor CryptoMe, Bitcoin network activity has remained subdued despite the digital asset’s impressive price recovery. The analyst highlighted several data points that confirm the lack of interest in the Bitcoin blockchain.

First, the analyst pointed to the decline in BTC active addresses. When BTC fell from around $110,000 to $75,000, the number of active addresses dropped sharply. Yet, even as BTC prices have rebounded, the number of active addresses has failed to recover.

active address

Similarly, the bitcoin Network Activity Index – a composite measure that includes transaction counts, total unspent transaction output (UTXO), and bytes per block – continues to signal low engagement across the network.

bitcoin network activity

Another area of concern is Bitcoin’s mempool. For the uninitiated, the BTC mempool is a temporary holding area where unconfirmed transactions wait to be validated and added to the blockchain by miners. The analyst noted:

Looking at the current data, the mempool is nearly empty – there are very few pending transactions. Sometimes, the mempool can be low because of technologies like SegWit or batching. But when we also see a drop in active addresses and low network activity, it clearly shows that the reason is a lack of interest.

CryptoMe concluded that the low on-chain activity is “not a good sign,” especially as it suggests fading interest from retail investors. However, the analyst added that improving global economic conditions and looser monetary policy could help bring retail participants back into the market.

Will Retail Investors Make A Comeback?

Beyond network metrics, other indicators also suggest muted retail participation in the current BTC rally. For example, exchange activity has dropped to multi-year lows, further reinforcing the idea that retail engagement remains limited.

The overall demand for BTC remains significantly weak – casting serious doubts on the sustainability of the current bullish momentum. That said, some encouraging signs still remain.

The Bitcoin bubble chart indicates that, although BTC is trading NEAR its ATH, it has yet to show signs of overheating – suggesting there’s still room for further price growth. At press time, BTC trades at $107,225, up 0.1% in the past 24 hours.

bitcoin

|Square

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users