Bitcoin’s on-chain activity remains significantly below the heights seen during the 2021 bull market. In May 2021 the network averaged roughly 1.12 million active addresses per day and nearly 489,000 newly created wallets each day.
Today, those figures have fallen to approximately 624,000 active addresses and 278,000 new wallets per day. Compared with the 2021 peak, these numbers represent declines of about 44% and 43%, respectively, according to data from Santiment.
Fewer Wallets, Fewer Transactions
Active addresses are a common measure of how many unique participants are transacting on the network, while network growth tracks the creation of addresses interacting with Bitcoin for the first time. Based on these metrics, Santiment reported that Bitcoin is attracting fewer new participants and generating less daily transactional activity than during the retail-driven enthusiasm of five years ago.
This decline has taken place even though BTC’s price has remained well above 2021 levels for much of the current market cycle. Santiment suggests one contributing factor is the rise of spot Bitcoin ETFs and other institutional investment vehicles, which let investors gain exposure to Bitcoin without moving coins on-chain or creating additional wallets.
The firm also noted that many long-term holders have become more passive, choosing to hold their BTC rather than frequently transact. As a result, the network still carries considerable value but sees less activity than during the 2021 rally. Santiment cautioned, however, that this slowdown in on-chain activity should not automatically be interpreted as a bearish signal.
Historically, large price swings have driven spikes in network activity. In the current cycle, the reduced activity seems tied to both a relative lack of major price movement and growing investor interest in traditional markets like equities and gold.
Attention Returns Despite Weaker Activity
Investor attention in the broader crypto market has begun to recover. In May there was renewed focus on digital assets, with discussions about Bitcoin rising roughly 24% compared to April. Santiment noted that this increase indicates traders are positioning for opportunities in crypto again, even as capital deployment remains selective and broader participation stays muted.
At the same time, the firm observed a noticeable shift of investor attention toward traditional equities. Strong performances from technology, artificial intelligence (AI), semiconductor, and defense stocks have encouraged many traders to diversify beyond crypto, and conversations about stocks and ETFs have become more common within crypto-focused communities.
Regulatory developments also remained a central area of interest. Santiment highlighted that optimism around the CLARITY Act built during May as market participants anticipated long-awaited regulatory guidance for digital assets in the United States. Repeated delays and procedural hurdles, however, left the legislation unresolved by month-end, turning some of the initial optimism into frustration.
Meanwhile, Strategy remained one of the most closely watched Bitcoin-related companies. The firm’s disclosure of a 32 BTC sale — the first publicly reported Bitcoin sale in its history — sparked debate about whether its long-standing “never sell” stance is changing. The sale appears tied to managing preferred stock obligations rather than signaling a shift in Strategy’s overall Bitcoin strategy. The company continues to hold 843,706 BTC.