On-chain usage of Bitcoin continues to decline, with active addresses returning to levels near those seen during the 2019 bear market. Amid falling prices, reduced on-chain participation further dampens market sentiment.
Active addresses return to the 2019 range
According to Bitcoin Magazine data, as of June 4, the 60-day average of active Bitcoin addresses slightly exceeded 600,000, nearing levels seen during the 2019 bear market. This metric is commonly used to gauge network participation and on-chain activity.
The report notes that this downward trend has persisted since the end of the 2021 bull market. Although Bitcoin has become more accessible to institutional and traditional investors through compliant products such as ETFs, some of this demand has not translated into on-chain transaction activity.
Stablecoin settlement is shifting to other blockchains.
The article suggests that the weakening usage of the Bitcoin network is also related to other public blockchains taking on more payment and settlement activities. Ethereum, Solana, and Tron have consistently absorbed stablecoin transfers and high-frequency settlements in recent years, while Bitcoin is increasingly viewed as a store of value.
- More businesses are using Ethereum to process stablecoin transfers.
- Solana and Tron are handling increased payment settlement demands.
- On-chain transactional demand for Bitcoin has relatively decreased.
The report also noted that, following the enactment of the Genius Act in July 2025, which established federal regulatory rules for stablecoin issuers, institutional stablecoin activity further expanded toward faster, lower-cost public blockchains.
BTC is down more than 26% this year.
As of press time, Bitcoin is trading at approximately $63,950, down more than 26% year-to-date. The market continues to monitor the support zone formed in February 2026, which was previously regarded as a buying observation area.
However, the latest U.S. employment data briefly supported risk assets. The data showed that initial jobless claims for the week ending May 30 rose to 225,000, above market expectations, while the final increase in labor costs for the first quarter came in below expectations.