Bitcoin on-chain usage continues to decline, with active addresses returning to levels close to those seen during the 2019 bear market. Against the backdrop of falling prices, declining on-chain participation has further dampened market sentiment.
Active addresses have returned to the 2019 range.
Data from Bitcoin Magazine shows that as of June 4, the 60-day average of active Bitcoin addresses was slightly above 600,000, approaching the levels seen during the 2019 bear market. This metric is typically used to observe network participation and on-chain activity.
The report noted that this downward trend has continued since the end of the 2021 bull market. Although Bitcoin is more easily held by institutions and traditional investors through compliant products such as ETFs, some demand has not translated into on-chain transaction activity.
Stablecoin settlements shift to other public blockchains
The article argues that the weakening of Bitcoin network usage is also related to other public blockchains taking on more payment and settlement activities. Ethereum, Solana, and Tron have been continuously absorbing stablecoin transfers and high-frequency settlements in recent years, while Bitcoin is more often seen as a store of value.
- More businesses are using Ethereum to process stablecoin transfers.
- Solana and Tron are handling more payment settlement needs.
- The demand for on-chain Bitcoin transactions has decreased relatively.
The report also mentioned that after the U.S. signed the Genius Act in July 2025, which established federal regulatory rules for stablecoin issuers, institutional stablecoin activities further expanded to faster and lower-cost public blockchains.
BTC has fallen by more than 26% this year.
As of press time, Bitcoin was trading at approximately $63,950, down more than 26% year-to-date. The market remains focused on the support zone formed in February 2026, which was previously considered a key buying opportunity.
However, the latest US employment data briefly provided support for risk assets. Data showed that for the week ending May 30, initial jobless claims in the US rose to 225,000, higher than market expectations; while the final increase in labor costs for the first quarter was lower than expected.
