Bitcoin’s network activity is improving even as the price remains below previous highs.
In 2024, the network activity moved along with the price action as Bitcoin [BTC] moved to the $100,000 zone. However, in 2025, this relationship began to unravel as network activity rapidly plummeted.
The difference suggests that Bitcoin adoption continues to increase beneath the surface, even as investors remain cautious about the price outlook. Recently, however, the trend has reversed.
The metric’s index rose from almost 3.2k to almost 3.8k as Bitcoin lost its upward momentum. This shift is important because growing use precedes a major price recovery.
That said, caution is still advised. According to CryptoQuant, most of the increases are due to smaller transaction volumes compared to institutional inflows.
Demand for funds is declining despite improving network activity
While there are indications that network activity is recovering, demand for funds continues to move in the exact opposite direction. Recently, the fund market premium fell into negative territory as Bitcoin fell to $63.1k.
This indicates that institutions and investors are still unwilling to pay more than net asset value (NAV) for exposure. Earlier in the cycle, the premium was near neutral while Bitcoin traded above $100,000.
However, demand for funds gradually weakened, pushing the premium down to around -6 during the recent sell-off. Although the statistic has recovered to around -0.6, it remains in negative territory.
Furthermore, the 30 Day EMA continues to trend downward. This difference implies that while under-the-hood adoption may improve, stronger capital inflows will not support a sustainable recovery.
Despite improvement network activity and reduced question, the current dolphin accumulation adds one additional layer of caution. The addresses of balances by 100 Unpleasant 1k BTC have been accumulate more Bitcoin over time than they did one year prior.
However, the rate at which these balances increase is steadily decreasing. If A result by this declinethe net increase in dolphin (addresses with between 100 And 1k) The balance has fallen significantly since then the start of the year.
Although dolphin balance sheets remain positivethe loss by momentum inside this segment of the market indicates a certain level by investor confidence has decreased.
That’s why, while there seems to be evidence of it conviction among investors based on continued positive net increases in dolphin balances compared to last year’s totalsthe rates bee who have these increases has occurred indicates a weakened belief.
Final summary
- Usage of the Bitcoin network continues to improve, but weaker demand for funds suggests that adoption is still outpacing capital inflows.
- Dolphin Holdings remains above last year’s levels, although slowing accumulation points to weaker conviction.