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Brian Njuguna

Bitcoin Network Usage Drops Over 40% Since February 2021 as Price Diverges From On-Chain Activity

Analytics firm Santiment reports that since February 2021, Bitcoin’s network activity has sharply weakened, with unique active addresses down 42% and new address creation falling 47%. Despite this contraction, market capitalization moved toward new highs in 2025, creating a bearish divergence between price and real usage. Bitcoin is trading near $64,401, about 24% lower year-to-date, while sentiment gauges such as the Crypto Fear & Greed Index remain in "Extreme Fear."