Bitcoin ($BTC) shocked the market in May with a new all-time high price level of $112,000. Nonetheless, the data from CryptoQuant indicates that the on-chain activity related to Bitcoin ($BTC) is diminishing to a significant extent despite its surge to the latest all-time high. The on-chain data and analytics platform used social media to share insights into waning engagement when it comes to retail investors.

Retail Engagement Continues to Touch Low Levels

CryptoQuant’s statistics indicate that the Bitcoin ($BTC) ecosystem is experiencing a low participation. This points out that its price jump may not be as sustainable or healthy as it appears. While focusing on this development, CryptoQuant revealed 3 notable metrics that suggest low network participation. They take into account the depression of active addresses, decline in network activity, and empty memepool.

In this respect, the wallets engaged in receiving or sending Bitcoin ($BTC) have, up till now, not recovered in relation to price. Following $BTC’s drop to $75K, the respective addresses have remained at very low levels, highlighting that fewer participants are interacting with the Bitcoin network. While prices surge but consumer activity maintains its position, it signifies that the market may be driven by speculative forces.

Trending Now: Bitcoin Hits Low Spot Volume Despite Record High in Price

Apart from that, the network activity is also seeing a dip, reflecting low engagement. Hence, irrespective of the bullish price action, the core blockchain activity presents a sluggish outlook. It has reportedly diverged from its historical performance. Similarly, the Bitcoin memepool, which is the list of unconfirmed transfers, provides yet another indication of the ongoing scenario. Thus, at the moment, it is almost empty, underscoring least transfer traffic.

Waning Investor Interest Raises Concerns Until Big Shifts Take Place

As per CryptoQuant, memepool congestion can be decreased by technological enhancements like transaction batching and SegWit. Even then, the combination of reduced transfer, a thin memepool, and minimized active addresses suggests a wider deficiency of interest among retail investors. This raises concerns until monetary policy shifts or macroeconomic changes rekindle wider investor interest. However, at present, the rally may be deficient in long-term sustainability.