Bitcoin’s on-chain activity has fallen well below its 2021 bull-market peak, even as price remains elevated. Daily active addresses and new-wallet growth now trail May 2021 levels by more than 40%. The shift points to a market where spot ETFs and large holders can shape exposure. Fewer investors need to move coins directly or open their own on-chain wallets today.
Bitcoin averaged about 624,000 active addresses per day, compared with roughly 1.12 million in May 2021. That marks a decline of about 44%, based on the reported figures. New-wallet creation also slowed to about 278,000 per day. The May 2021 level was nearly 489,000, which shows a drop of about 43%.
Active addresses are often used to track unique senders and receivers. Network growth tracks addresses that interact with Bitcoin for the first time. Both measures remain below the retail-heavy period of 2021. The data shows lower daily use, not a lower network value.
Bitcoin’s network activity looks very different today than it did during the peak of the 2021 bull market. In May 2021, the Bitcoin network was averaging roughly 1.12M active addresses per day and nearly 489K new wallets being created daily. Today, those figures have fallen to… pic.twitter.com/RK6wMoMfA8
— Santiment Intelligence (@SantimentData) June 1, 2026
In May 2021, retail traders were highly active during a fast rising market. Address counts tend to expand when users buy, sell, and transfer coins more often. A quieter address count can also reflect changed access channels.
Spot ETFs changed how many investors access Bitcoin. A buyer can gain price exposure through an ETF without creating a wallet. The fund may settle shares through brokers, while coins remain with custodians. That structure can reduce visible on-chain activity from new investors.
ETF demand can also pool many buyers behind fewer visible addresses. Custodians may manage large wallets for funds, brokers, and institutions. That means one on-chain move can represent many end buyers.
Institutions also tend to move coins less often than retail traders. Long-term holders have also become more passive. Many keep coins in cold storage or with custodians. As a result, the network can hold high value while showing fewer daily transactions.
Market analyst Matthew Dixon said BTC/USD showed a short-term bearish structure on the daily chart. He cited a sharp pullback from the May high near 81,000 to 83,000. He also noted prices near 71,400, close to support around 70,000 to 71,000. His chart view placed further support near 68,000 to 69,000, then 66,000 to 67,000. Resistance sat near 73,500 to 74,500, and then 76,000 to 78,000.
Dixon said a move back above those levels would be needed to ease the bearish setup. Recent selling was also tied by market commentators to Middle East tension, higher oil, global risk-off moves, and crypto liquidations. Strategy’s 32 BTC sale was small compared with its reported 843,706 BTC holding. Yet the sale drew attention because Michael Saylor had long been linked with a hold-focused treasury strategy.
Why Iran is likely the bigger short-term driver than Saylor #BTC sales
I mentioned a few days ago that there is more "bad" news top come – The $BTC chart is clear that we have been correcting higher since the FEB low and we need a further low.
When Bitcoin dropped below $73k… pic.twitter.com/0T2RWZIPJd— Matthew Dixon – Veteran Financial Trader (@mdtrade) June 1, 2026
Network activity often rises when volatility increases. Santiment’s post said volatility in either direction can lift Bitcoin activity. For now, the main on-chain story is cooler participation than in 2021. ETF demand has given more investors Bitcoin exposure without direct wallet use. That leaves fewer public address signals.
The post Bitcoin Network Activity Cools as ETF Demand Shifts More Investors Off Chain appeared first on CoinCentral.
