Bitcoin Network Activity Index Keeps Declining: Demand Still Weak?
CryptoQuant’s Network Activity Index for Bitcoin has been locked in a downtrend, suggesting that demand for utilizing the blockchain stays weak.
CryptoQuant’s Bitcoin Network Activity Index Has Been Cooling Off
As highlighted by CryptoQuant group analyst Maartunn in an X post, Bitcoin on-chain exercise has been cooling off not too long ago. The indicator of relevance right here is the “Network Activity Index” from analytics agency CryptoQuant, which mixes a number of activity-related metrics to showcase the general scenario on the blockchain.
The indicators referred to by the index embrace active addresses (each receiving and sending), transactions (complete and per block), UTXO rely, and bytes per block.
Now, right here is the chart shared by Maartunn that exhibits how the CryptoQuant Network Activity Index has modified for Bitcoin over its historical past:
As displayed within the above graph, the Bitcoin Network Activity Index has been following a downward trajectory not too long ago, an indication that transaction exercise on the blockchain has been waning.
Alongside this decline, the indicator has been caught within the area beneath its 365-day transferring common (MA), one thing that tends to correspond to bearish phases.
Interestingly, the purple sign within the indicator has really maintained since earlier than the shift of winds that the market noticed within the final quarter of 2025. This signifies that though BTC noticed a rally to new all-time highs (ATHs) throughout the yr, the community exercise was nonetheless in a state of decline. From the chart, it’s seen that this sample was additionally witnessed throughout 2021; the second half of that yr’s bull run noticed the metric flash a bearish sign.
Given that the Bitcoin Network Activity Index has continued to be in a purple zone not too long ago, it will seem that demand for utilizing the community has remained weak. It now solely stays to be seen how lengthy it’ll take earlier than the indicator observes a reversal.
In another information, on-chain analytics agency Glassnode has shared the information of its new indicator, the Accumulation Trend Score by Wallet Cohort, in an X post. This metric tells us concerning the 30-day accumulation habits of the varied Bitcoin investor teams.
As the beneath chart exhibits, the Accumulation Trend Score has been at impartial or purple values throughout the market not too long ago.
The orange-red ranges for all Bitcoin teams point out that investor habits has leaned towards distribution not too long ago. In distinction, some cohorts have been taking part in accumulation following the value crash in February.
BTC Price
At the time of writing, Bitcoin is floating round $70,900, up greater than 2% during the last 24 hours.
