- Bitcoin’s active addresses dropped 26% in a year, showing a sharp decline in real network participation.
- Retail investors are retreating, leaving the network dominated by institutions and long-term holders.
The number of active addresses on the Bitcoin network continues to decline, even as the price of the digital asset has set record after record over the past year.
According to on-chain analyst Carmelo Alemán on CryptoQuant, this isn’t just a casual fluctuation, but a clear reflection of retail investors starting to leave the ecosystem.
Bitcoin Activity Plummets as Retail Users Step Away
According to the data he shared, at the beginning of November 2024, there were around 1.18 million daily active addresses. However, as of October 30, 2025, the number had dropped sharply to 872,000, a decrease of more than 26% in a year.
This clearly indicates that economic activity on the blockchain is sluggish, at least from the perspective of retail users. Active addresses are a crucial indicator that reflects real interaction with the network, not just fluctuating prices. This drop in numbers indicates a lack of transfers or transactions involving small users.
Furthermore, transaction fees have also plummeted, from $8.44 at the beginning of November 2024 to just $0.56 by the end of October 2025. What does this mean? Bitcoin blocks are no longer fully occupied, and demand for space on the network has dropped sharply.
This drop in fees isn’t a good sign in terms of adoption. On the contrary, it indicates that transactions are no longer competing for space in blocks.
Typically, when the market is busy, especially when prices are soaring, transaction fees increase as many users rush to send BTC. But now, this calm situation is more reminiscent of a typical mall atmosphere than a FOMO situation.
“When transaction fees are this low, it means there’s little retail activity,” Carmelo said.
When the Market is Dominated by Big Players
On the other hand, CNF reported that there was recently a massive sell-off by retail traders on Binance, with over $1 billion worth of Bitcoin alone. This sell-off marks a new short-term squeeze stemming from mass fear.
As if that weren’t enough, ETFs owned by large institutions like BlackRock, Fidelity, and Grayscale also recorded massive outflows. All of this suggests that retail traders are indeed panicking, and they’re starting to leave the market faster than expected.
Interestingly, while most small investors are withdrawing, whales are quietly moving. Two days ago, we highlighted a sharp spike in the Bitcoin Scarcity Index on Binance during October.
This index indicates intensive accumulation by large investors, who are taking advantage of the quiet conditions to absorb the increasingly limited BTC supply. The 24-hour spot volume also remains strong at $5.28 billion, indicating sustained organic demand, albeit not from retail.
As of press time, Bitcoin is trading at about $110,140, up slightly by 0.15% in the last 24 hours. Although the rise appears calm, it doesn’t necessarily mean the situation is stable. In fact, because large volumes are now dominated by institutions and long-term holders, market dynamics are more level, without the emotional outbursts typical of retail.
Furthermore, Carmelo also highlighted that market cycles could last longer than usual if retail doesn’t return to the arena. Retail plays a crucial role, providing the liquidity and psychological boost typically needed for large investors to exit their positions profitably.
