TLDR:

• Bitcoin on-chain activity has fallen to 2-year lows, with only 531K wallets making daily transfers.
• BTC’s 22% price rise over five weeks is not backed by broad network participation or new user growth.
• Only 203K new Bitcoin wallets are created daily, a figure that sits at the lowest point in two years.
• Santiment warns that price rallies without on-chain support are historically fragile and short-lived.

Bitcoin on-chain activity has dropped to its lowest levels in two years, even as BTC reclaims the $80,000 price mark.

Data from blockchain analytics firm Santiment shows only 531,000 wallets making daily transfers. Additionally, just 203,000 new Bitcoin wallets are being created each day.

These are the weakest participation numbers since 2023. The gap between the price recovery and user activity has drawn fresh scrutiny from market observers.

A Rally Supported by Few Market Players

Bitcoin’s price has climbed roughly 22% over the past five weeks. Yet, the number of daily active wallets has not risen in step with the price.

This kind of divergence is unusual during a sustained price recovery. Market participants and on-chain analysts are paying close attention to the gap.

Santiment noted on X that both wallet metrics are sitting at two-year lows. The firm shared data showing “531K Bitcoin wallets making transfers daily” and “203K new Bitcoin wallets created daily.”

This comes as Bitcoin breaks back above $80,000 for the first time in three months. The timing makes the numbers stand out even more.

Typically, rising prices pull in new users and encourage more wallet activity. More on-chain traffic and higher wallet creation rates are common signs of broad adoption. Those signals are clearly missing from the current rally.

Instead, a smaller pool of market participants appears to be driving prices higher. Without wide user participation, the move rests on a narrow foundation.

That makes it more sensitive to profit-taking by larger holders. There is also less fresh demand available to absorb a potential sell-off.

What Low Network Activity Could Signal Next

Low on-chain activity during a price rally is widely viewed as a warning sign. According to Santiment, price increases without growing on-chain participation tend to be fragile. There is simply less buying pressure backing the current move.

If larger players choose to exit their positions, the situation becomes more delicate. There may not be enough demand from new users to keep prices elevated.

The absence of retail adoption at scale remains a key concern for market watchers. Santiment’s data shows that buying fuel remains thin at current participation levels.

However, Santiment also notes that low activity can serve as a contrarian signal. Activity bottoms have historically marked the end of periods of market apathy, not the continuation of them. The market may be closer to a turning point than the current numbers suggest.

Bitcoin is already recovering toward $80,000 with participation near multi-year lows. If retail interest picks back up and daily active addresses begin climbing, the move could gain a stronger footing.

During the 2024–2025 peaks, new wallet creation regularly exceeded 100,000 per day. A return to those levels would represent a notable shift in market momentum.

XRP price climbed from $1.3840 to $1.4065 in early Asia trading on May 4 on a sharp pickup in volume, breaking through resistance at $1.40 alongside Bitcoin’s return above $80,000.

XRP price broke above $1.40 for the first time in several days on May 4, alongside Bitcoin’s move above $80,000. As crypto.news reported, Standard Chartered analyst Geoffrey Kendrick projected that Senate Banking Committee advancement of the CLARITY Act could unlock $4 to $8 billion in additional XRP ETF inflows, placing the week-of-May-11 markup as the primary event that could break the $1.45 supply wall.

The $1.45 level has rejected XRP four times in 2026, including a brief $1.50 excursion on April 17 after Rakuten integrated XRP payments for 44 million Japanese users.

Glassnode data confirms roughly 36.8 billion XRP, approximately 60% of total circulating supply, is held at an average cost basis of $1.44, creating a mechanical ceiling at every approach. Traders are now watching whether XRP can hold $1.40 as support and clear $1.41 to $1.42, with a failure back below $1.40 signalling a reversed breakout.

As crypto.news documented, Standard Chartered cut its 2026 XRP target from $8 to $2.80 in February on macro headwinds, making the CLARITY Act catalyst the primary variable for any re-rating this year. As crypto.news tracked, XRP spot ETFs posted $81.63 million in April inflows across a 20-day streak that broke on April 30, before the broader market recovery on May 4 brought renewed buying interest.

Key Highlights

• Upbit introduces GIWA Layer 2 for enhanced infrastructure autonomy and fee management
• Exchange-operated blockchain networks become increasingly common across the industry
• Optimism’s OP Stack technology provides established scalability foundation for GIWA Layer 2
• Self-Managed operational model grants Upbit complete sequencer authority
• Network architecture designed for institutional-grade compliance and performance standards

South Korean cryptocurrency exchange Upbit has announced its collaboration with the Optimism Foundation to establish GIWA Layer 2, representing a significant evolution in how exchanges manage their technical infrastructure. This GIWA Layer 2 deployment enables the trading platform to exercise direct authority over network performance, transaction costs, and regulatory adherence. The development highlights an industry-wide movement where leading exchanges prioritize infrastructure ownership rather than depending on communal blockchain networks.

Exchanges Embrace Proprietary Blockchain Infrastructure

Upbit will implement GIWA Layer 2 through the OP Stack framework to achieve operational autonomy. The platform intends to oversee transaction ordering, revenue generation from fees, and service stability through independent management. Consequently, GIWA Layer 2 enables the exchange to satisfy compliance obligations while delivering reliable service quality.

Leading cryptocurrency platforms increasingly view blockchain infrastructure as a competitive advantage instead of merely a technical requirement. Operating at substantial scale, dependence on public blockspace constrains operational flexibility and limits potential income from transaction processing. GIWA Layer 2 therefore supports Upbit’s objective to synchronize technical capabilities with its worldwide customer base and substantial trading volumes.

The South Korean platform serves more than 13 million registered customers and maintains considerable international trading operations in recent periods. GIWA Layer 2 consequently resolves the constraints associated with utilizing external infrastructure amid expanding user demand. This strategy guarantees stable performance while minimizing reliance on external blockchain networks.

Leveraging Proven OP Stack Technology

GIWA Layer 2 will operate using the OP Stack framework, which currently supports numerous operational Layer 2 blockchain networks worldwide. This technology ecosystem has facilitated billions of on-chain transactions, demonstrating its capacity for scale and dependability. GIWA Layer 2 therefore builds upon validated infrastructure rather than experimental alternatives.

Enterprise-level organizations increasingly select OP Stack based on its demonstrated performance history and flexible architecture. This framework accommodates both centralized exchanges and decentralized platforms requiring dedicated blockchain environments. GIWA Layer 2 thus participates in a widespread industry trend toward standardized Layer 2 infrastructure solutions.

The OP Stack network ecosystem maintains ongoing growth with various chains sharing compatibility and governance structures. Individual networks function autonomously while participating in a collective infrastructure layer. GIWA Layer 2 therefore joins an established ecosystem while preserving independent operational authority.

Complete Operational Authority Through Self-Managed Framework

GIWA Layer 2 will operate under OP Enterprise’s Self-Managed configuration, providing Upbit with comprehensive control over network functions. The exchange will operate the sequencer mechanism, which establishes transaction priority and generates corresponding fee revenue. The Optimism Foundation will deliver network monitoring, backup infrastructure, and expert technical assistance.

This operational structure enables GIWA Layer 2 to combine autonomy with enterprise-level reliability. Upbit maintains decision-making power regarding network operations while accessing external support infrastructure. The arrangement minimizes operational vulnerabilities without sacrificing control.

The Self-Managed configuration addresses organizations requiring rigorous compliance standards and infrastructure governance. For licensed cryptocurrency exchanges, maintaining direct oversight of transaction processing remains critical for regulatory reporting and accountability. GIWA Layer 2 therefore exemplifies an expanding preference for controlled blockchain architectures among prominent financial service platforms.

GameStop (GME) is aiming for a major expansion with a proposed $55.5 billion acquisition of online marketplace eBay (EBAY), raising fresh questions about whether its bitcoin BTC$80,040.21 holdings could help fund the deal.

The video game retailer, which holds about $368 million worth of BTC, submitted a non-binding offer Sunday to buy eBay for $125 per share in cash and stock. The bid represents a 46% premium to eBay’s share price in early February, when GameStop began building a position. The company said it now holds a 5% economic stake through shares and derivatives.

A deal of this size would likely require significant cash. GameStop said it expects to fund the offer using its $9.4 billion of “cash and liquid investments” on its balance sheet and up to $20 billion in financing, backed by a letter from TD Securities.

Will GameStop sell BTC?

That raises fresh questions about whether GameStop will sell its BTC to help pay for the deal.

The acquisition plan follows earlier remarks from CEO Ryan Cohen, who said in February he was pursuing a “very, very, very big” acquisition of a public consumer firm. He described the plan as “way more compelling than bitcoin” and left open the option of selling the company’s crypto holdings to fund a deal.

GameStop disclosed last month that it shifted about 4,709 BTC to Coinbase Prime, crypto exchange Coinbase’s prime brokerage platform for institutions, as part of a covered-call options strategy, keeping exposure to bitcoin while generating income.

The company held little over $9 billion in cash and accounted for its $368 million bitcoin stash as “receivables” after the Coinbase Prime maneuver. Those items add up to the $9.4 billion balance sheet power that could be used to fund the acquisition.

In an interview with CNBC, Cohen also said the firm has the “ability to issue stock in order to get the deal done.”

GameStop did not respond to a request for comment on its plans for its bitcoin holdings by press time.

The proposed eBay deal would turn GameStop into a broader e-commerce player. It will also determine whether the firm’s bitcoin remains a long-term holding or becomes a funding source for the expansion.