- Shrimp wallets, or addresses holding under 1 BTC, dropped from 590,000 in 2021 to just 260,000 today.
- The 30-day average for shrimp wallet activity remains below the yearly average, showing weak retail participation.
- Bitcoin network growth is driven mainly by larger holders, as retail investor presence continues to shrink across key metrics.
Retail investors are showing low participation in the current Bitcoin cycle, despite the asset reaching multiple all-time highs since 2021. Shrinking wallet activity and falling shrimp address counts reveal a quieter retail market than expected.
Shrimp Wallets Drop to Multi-Year Lows
A recent post from Darkfost_Coc shared new data suggesting that retail investors remain largely on the sidelines. The count of Bitcoin addresses with less than 1 BTC sitting in them, known as the “shrimp” addresses, has fallen drastically. There were about 590,000 such shrimp addresses at Bitcoin’s 2021 high. The count dropped down to 490,000 during the high in April 2024.
Today, even with Bitcoin approaching another record price, the number of shrimp addresses has fallen to just 260,000. This decline suggests retail investors have not returned to the market in large numbers. The falling shrimp count is especially notable given the price performance over the same period.
Retail Participation Weak Despite Price Rallies
While Bitcoin continues to break previous price barriers, the network data presents a different story. The 30-day moving average of shrimp address activity is currently well below the yearly average. This signals reduced retail engagement in recent months. Despite favorable market conditions, new small holders are not entering the market at the same rate seen in previous cycles.
Darkfost also notes that some addresses may have moved into higher holding categories, but that shift only explains a small portion of the total decline. The current drop in shrimp wallets reflects more than just growth in holdings; it shows fewer new entrants at the retail level.
Network Activity and Investor Behavior
Network activity tied to smaller holders remains subdued, reinforcing the idea that broader adoption is stalling. Compared to earlier market cycles, retail investors now represent a smaller segment of Bitcoin’s active user base. Even with bullish price movements, the lack of retail wallet growth signals a change in investor behavior.
The decline in shrimp wallets serves as another indicator that retail participation is lagging. Without a surge in small-scale adoption, market momentum may continue to rely heavily on institutional players.
