Bitcoin Active Addresses Hit Three-Year Low
CryptoNewsTerminal Staff04 Jun, 2024
Bitcoin Active Addresses Hit Three-Year Low
As reported by CryptoSlate, the number of active Bitcoin (BTC) addresses has recently hit its lowest level in three years. As of the time of this writing, the 7-day average of active BTC addresses stands at just over 500,000. This decline in network activity is largely attributed to the increased transaction fees that have been prevalent since the halving. As the block reward was cut in half, miners have been forced to increase their fees in order to maintain profitability. The impact of these higher fees has been particularly pronounced on smaller transactions. As a result, many users have been forced to either consolidate their transactions or simply refrain from making any transactions at all. The decline in active BTC addresses is a potential concern, as it suggests that the network's user base is shrinking. However, it is important to note that this decline is not entirely unexpected. In the wake of the halving, it was widely anticipated that there would be a period of adjustment. As the market settles down and the fees begin to stabilize, we can expect to see the number of active BTC addresses start to recover.
