Bitcoin has hit a bump. Daily active addresses on the BTC network have fallen sharply. From a steady range of 570K–800K earlier in July, it’s now down to just 380K as of July 31, according to on-chain data.
This isn’t a small dip. It’s one of the lowest numbers seen in months.
In contrast, Ethereum is staying resilient. Daily active addresses hover around 511K, suggesting users are still actively transacting and engaging on the ETH network. Is user interest shifting?
Despite the drop in address activity, Bitcoin’s current supply dynamics are sending other signals.
According to data from CoinMarketCap, Bitcoin is trading just above $122,000 at press time. However, a significant chunk of the supply is currently held at a loss.
Roughly 7.9% of the total circulating BTC supply is now underwater. This suggests many holders bought between $121K and current levels, pointing to fresh accumulation zones.
If prices slide further, analysts believe a major support zone could form near $105K. That’s where close to 900,000 BTC was previously acquired. A deeper pullback may trigger heavy accumulation here.
We’re running out of Bitcoin. Literally. As of July 2025, only 1.1 million BTC remains to be mined. That’s under 5.2% of the total 21 million supply.
Halving is done and supply is thinning. Also, Demand is heating up with many wanting to get a bite. More people want it while less of it is left.
When demand surges while supply stalls, price volatility becomes inevitable.
This long-term scarcity could shape BTC’s price action heading into 2026. Investors are watching closely.
While Bitcoin’s active address count dips, Ethereum’s fundamentals remain robust. ETH hasn’t just maintained user interest, it’s growing quietly. DApps, DeFi, and token transfers continue to drive address activity.
With 511K daily active addresses, Ethereum is close to surpassing Bitcoin in terms of daily user engagement. Yes, the price gap between the two assets is still wide, ETH trades at $3,680 (CoinMarketCap, Aug 1). But that gap in utility? Shrinking fast.
ETH now feels like the chain for builders, users, and innovation. BTC still holds the narrative for store of value. But is that enough in 2025?
Market activity is softening, at least on-chain. A decline in daily addresses doesn’t always mean weakness. It could signal consolidation. It could also signal boredom or people sitting on the sidelines.
But when Ethereum stays active while Bitcoin quiets down, it’s worth watching. The $105K support zone is a potential bull’s safety net. Short-term volatility could still shake things up.
But with only 1.1M BTC left to mine, the long-term story hasn’t changed: Bitcoin is still one of the rarest digital assets ever created.
Bitcoin’s on-chain activity is cooling, but supply-side fundamentals are tightening.
Ethereum is holding user attention and might even flip BTC in address activity soon. Price, of course, moves last. First come users. Then come transactions. Then comes volume.
Right now, Ethereum is winning that early race. The question is how long before that reflects in the charts?
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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