Data indicates a recent divergence between Bitcoin's active addresses and transaction count, which has raised interest among analysts. Here’s an overview of what’s happening:

Bitcoin Active Addresses and Transaction Count Show Divergence

According to the latest weekly report from Glassnode, Bitcoin's network activity metrics, particularly Active Addresses and Transaction Count, are showing notable differences.

Active Addresses represent the unique number of addresses involved in transaction activity on the blockchain daily, akin to the network's active user count. Recent data reveals a decline in the 30-day moving average (MA) of Bitcoin Active Addresses over the past few months, suggesting a decrease in user participation in transaction activities.

In contrast, the Transaction Count, which measures the total number of transfers occurring on the network daily, has seen a significant increase. The 30-day MA of Transaction Count is currently near its all-time high (ATH), standing at approximately 612,000 transactions per day.

This divergence indicates that while fewer addresses are actively participating in transactions, each active address is making a higher number of transfers. This trend marks a departure from previous bullish periods, where both indicators typically moved in tandem.

The analytics firm notes an intriguing correlation between the pattern of Active Addresses and the Transaction Count share of Bitcoin Inscriptions. Bitcoin Inscriptions allow data to be embedded into Satoshis (Sats), the smallest unit of BTC, which gained popularity from early 2023 until recently.