In the second quarter of 2025, the Bitcoin network reached the highest usage levels in its history. Growing interest from both individual users and institutional actors significantly increased on-chain activity. According to data published by blockchain analytics firm Glassnode, the number of active wallets reached a record daily average of 1.35 million. Meanwhile, Coinbase Institutional’s report shows that on-chain transaction volume exceeded $1.2 trillion, surpassing even the 2021 bull market peak.
The main drivers behind these records include new institutional demand sparked by the launch of spot ETFs, renewed activity in long-term wallets, and large-scale transfers conducted outside Layer 2 solutions. Experts note that these developments broaden Bitcoin’s use cases and demonstrate that it is no longer only a store of value, but also an actively used financial asset.
Bitcoin Network Usage Is Diversifying
The record levels mentioned in the introduction reflect not only numerical growth but also a change in usage patterns. Unlike previous cycles, where activity was mainly driven by short-term moves during price increases, this time the intensity is more sustained and rooted in on-chain activity. Following institutional ETF purchases, cold wallet transfers, large-scale individual transactions, and OTC (over-the-counter) volumes have significantly increased the network load.
Moreover, the rise in active wallet numbers is not only linked to new investors entering the market but also to the reactivation of long-dormant wallets. In particular, wallets that had remained inactive for more than seven years showed a noticeable increase in transfers.
The 4 Key Factors Behind the Growth
The record levels observed in the Bitcoin network during Q2 2025 cannot be explained solely by rising market interest. On-chain data shows that this growth is the result of several cumulative factors. The main drivers are:
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Institutional Inflows and the Spot ETF Effect
The approval of spot Bitcoin ETFs at the beginning of 2025 led large investors to engage directly in on-chain transactions. This significantly boosted both wallet numbers and transaction volume. -
The Rise of OTC Transfers
A substantial portion of large-scale Bitcoin transfers in the over-the-counter (OTC) markets were conducted on-chain. Asia-based transactions, in particular, stood out during this period. -
Reactivation of Old Wallets
Transfers from long-inactive wallets, especially those untouched for seven years or more, surged. This suggests that even long-term holders are repositioning themselves. -
Large Transactions Outside Layer 2 Solutions
Instead of relying on second-layer solutions like Lightning, many large-value transfers were made directly on the Bitcoin mainnet. This increased on-chain load and directly impacted total transaction volume.
Bitcoin Is Being Used More—Not Just Held
For years, Bitcoin has primarily been described as a “store of value,” or digital gold. However, the developments in Q2 2025 show that this definition is no longer sufficient. Rising wallet numbers, growing on-chain transaction volume, and the reactivation of old wallets reveal that investors are not just holding Bitcoin but also actively using it.
Experts highlight that this trend accelerated especially after institutional participation. Large transfers linked to the spread of spot ETFs significantly boosted the network’s “real usage.” This marks a new phase for Bitcoin—not only in terms of price, but also in its role within the financial ecosystem.
Bitcoin is no longer just stored; it is moved. This revival on the network could, in the long run, both diversify its usage and strengthen the foundations of decentralized finance infrastructure.
