Bitcoin network activity has dropped to its lowest level since 2010

According to data from IntoTheBlock, the ratio of active Bitcoin addresses has fallen to its lowest level since November 2010.

In June, the weekly active portfolio ratio fell to a low of 1.22% and a high of 1.32%.

Additionally, the total number of active wallets has dropped to levels not seen since 2018, with 614,770 active wallets recorded this week.

Source: IntoTheBlock

A decreasing ratio of active addresses suggests reduced buying and selling activity among Bitcoin holders, indicating a phase of market consolidation.

Juan Pellitzer, senior analyst at IntoTheBlock, explained the drop in activity on BTC portfolios with less retail participation than in previous cycles.

He stated:

This year's march to a new all-time high was fueled by institutional capital, not retail investors. The broader economic situation may have influenced retail investors to make fewer investments in cryptocurrencies than in the past.

According to him, much of the bearish trading activity takes place off-exchange, which does not significantly affect the on-chain activity statistics of addresses.