Bitcoin network usage continues to hover near record levels even as the asset trades well below its all time high, according to CryptoQuant’s Bitcoin Network Activity Index.
The index measures real on chain activity by tracking factors such as active addresses, transaction volume, unspent transaction outputs, and overall demand for block space.
Network Activity Continues to Strengthen
CryptoQuant data shows that the Network Activity Index is once again trending upward and moving closer to levels seen during the 2024 to 2025 peak period. It also remains above its 365 day moving average, suggesting that current usage is stronger than the long term baseline.
Unlike previous market cycles where rising prices typically drove increased participation, the current trend indicates that network growth is happening independently of Bitcoin’s price performance.
The report attributes this sustained activity to new applications built on the Bitcoin network. One of the key drivers is Ordinals, which allows users to permanently inscribe images, text, and NFTs directly onto individual satoshis.
This development has helped create a native digital asset ecosystem on Bitcoin. In addition, BRC 20 tokens built on Ordinals have enabled meme coins and community driven tokens without requiring traditional smart contracts.
Another contributing factor is Runes, a token standard introduced by Ordinals creator Casey Rodarmor. Runes leverages Bitcoin’s UTXO model to improve efficiency and reduce network congestion.
Together, these innovations have significantly increased demand for block space and expanded Bitcoin’s role beyond simple peer to peer payments. According to CryptoQuant, Bitcoin is increasingly being used as a platform for data storage and verification, even as macroeconomic factors continue to influence price action.
Price Pressure Persists
Despite strong network activity, Bitcoin remains under pressure in the market. The asset was trading below $63,000 on Wednesday as investors continued to show caution toward risk assets.
A key factor weighing on price is sustained outflows from US spot Bitcoin exchange traded funds, which are now heading toward a seventh consecutive week of net withdrawals. So far this week alone, these funds have recorded nearly $182 million in outflows.
Geopolitical uncertainty has also contributed to cautious sentiment, even as negotiations between the United States and Iran continue in Switzerland.
According to analysts at Bitunix, broader liquidity conditions will likely play a larger role in determining crypto market direction going forward. They noted that while easing geopolitical tensions may help stabilize energy prices, the next major phase for risk assets will depend more on Federal Reserve policy expectations than on geopolitical developments.
They added that upcoming volatility is likely to be driven by inflation data, labor market reports, and signals from the Federal Reserve regarding monetary policy rather than short term geopolitical events.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
