Cryptocurrency analytics firm Alphractal has analyzed why on-chain activity remains lower than expected despite Bitcoin's price fluctuating above $95,000. According to the company's report, despite the optimistic market atmosphere, trading volume and the number of active addresses remain at record low levels.

According to Alphractal's findings, there are seven main reasons for this situation:

1️⃣ Prices are determined by external factors rather than on-chain usage levels: The current price of Bitcoin is driven by external factors such as institutional capital inflow into spot ETFs rather than actual on-chain usage.

2️⃣ Low volatility: Low volatility reduces the trading momentum of traders, leading to a decrease in on-chain transactions.

3️⃣ Artificial stock market volume: Inflating trading volumes on certain exchanges can obscure the actual level of usage on the network.

4️⃣ Limited real demand: Bitcoin's price is mainly sustained through derivatives and speculation rather than everyday use on-chain.

5️⃣ The market is in a consolidation phase: Investors tend to wait until there are macroeconomic developments or clear signals. This limits the volatility of money.

6️⃣ The popularity of Layer 2 solutions: Layer 2 solutions like the Lightning Network move transactions off-chain, making activity on the main network appear low.

7️⃣ Shifting speculative activities to other networks: Networks like Ethereum, Solana, and Base are attracting intensive trading activities such as DeFi, staking, and memecoin, causing the on-chain dynamics of Bitcoin to diminish.

Alphractal claims that the current situation shows Bitcoin is starting to be seen more as a 'financial asset' rather than a 'blockchain technology'. This indicates that the link between on-chain usage and pricing is gradually weakening.