The number of active addresses on the Bitcoin network has fallen by around 60% from 1.3 million to around 500,000 in the past six weeks.

The collapse in activity has caused Ethereum to overtake Bitcoin in the number of active addresses, with the Ethereum network hosting around 200,000 more active wallets than Bitcoin as of July 27.

This is the third time this month, with Ethereum also overtaking Bitcoin on June 5, 2021 and June 6, 2021. The last time ETH took the lead was in early 2017.

Twitter analyst Mr. Whale – known for its bearish bias – also noted that Bitcoin’s weekly average active addresses have fallen to their lowest level since April 2020.

Active Bitcoin addresses on the blockchain network have just dropped to their lowest level since April 2020.

These dates are discounted. It shows that the demand for Bitcoin is drying up very quickly. pic.twitter.com/vdmwagbvtm

– Mr Wal (@CryptoWhale) July 1, 2021

Several factors could have contributed to the dramatic decline in active Bitcoin addresses, including the more than 50% sell-off after Bitcoin’s all-time high in May and the slowdown in market movement amid China’s recent crack reduced local Bitcoin mining operations

Ethereum’s active addresses have risen by more than 9% to 700,000 in the past week, even though the ETH price has fallen by more than 10%. However, active Ethereum addresses are still down 22% from their high of 900,000 in early April.

Sliding clock

Active addresses are the latest indicator that Ethereum has overtaken Bitcoin. The Blockchain Center Flippening Index estimates that transaction fee income is driving Ethereum by more than 300%, while total transactions have increased by nearly 500%.

However, Bitcoin has also regained its leadership in both transaction and trade volume, having recently lagged behind Ethereum.

According to a June 23 report by online chain analytics provider Glassnode, the total number of unique addresses interacting with DeFi protocols has continued to rise since May, suggesting that DeFi activity has increased despite the broader super-crypto trend .

Connected: Twice as much ETH blocked in DeFi as on exchanges: Glassnode

The data shows that the number of wallets that have interacted with the DeFi protocol has increased by almost 40% since the beginning of May, and the total number of users has grown to more than 2.9 million. Thus, continued demand for DeFi from new users could explain Ethereum’s recent strength in network activity versus Bitcoin.