Quote from: bitampcom on July 05, 2021, 01:14:58 PM

What do you guys think about stats floating around saying 60% drop in active BTC addresses?

I don’t think that statistic really stands. And it would depend on what you define as active addresses. Take into account that a LOT of activity now happens off-chain — that means people more and more are using and transacting Bitcoin without actually using the network. Exchange wallet to wallets, platforms between user accounts, and now even wrapped Bitcoin on other networks and Layer 2 solutions like Lightning.

Bitcoin use and adoption continues to grow, not shrink.

I agree with you. The stats are most likely not accurate at all but could reflect on times when the network is very active and times when it's not very active.

My Theory is that the on chain transactions or number of active addresses tend to rise during times of high volatility. There are people joining in due to FOMO and try opening up wallets and purchasing bitcoin and then people trying to move Bitcoins to from wallets to exchanges to sell due to panic.

But in the recent months, the volatility has been very low and so naturally the number of transactions on chain tends to drop. The low volatility is leads to low buy and sell orders as reflected by the low trading volumes lately.

The low on chain activity can also be reflected in the mempool. very few unconfirmed transactions compared to some months back.