Recently, the number of active addresses on the Bitcoin network dropped below 700,000 for the first time since March 2020. This decline was expected, as high fees can make it difficult for users to interact with the blockchain. The excitement around Runes led to a surge in fees, pricing out some users. However, as the hype died down, fees stabilized, and users returned to the network.

Despite this, the number of active addresses has continued to fall, reaching a low of 655,190 on May 12. Similarly, the number of new addresses on the network has dropped to its lowest point since July 2018, with an average of 290,000. While Runes-related transactions still make up a significant portion of Bitcoin activity, the frenzy has died down, leading to lower fees.

The initial slowdown in active addresses was likely caused by high fees, but the broader market slowdown may also be contributing to the decline. As the excitement around Runes wears off, users may be waiting for further signs that the hype is truly over before returning to the network.

In the meantime, fees have declined to pre-halving levels, making it more affordable for users to interact with the blockchain. Despite this, the number of active addresses remains low, indicating a slowdown in Bitcoin activity.