The leading coin, Bitcoin, has been trading within a narrow range since the beginning of February. It has struggled to break out of consolidation as both buying and selling pressures remain subdued. 

On-chain data suggests that this period of sideways movement could persist due to weakening activity on the Bitcoin network.

Bitcoin Could Face Prolonged Sideways Movement as Network Activity Drops

According to a recent report by pseudonymous CryptoQuant analyst Avocado_onchain, Bitcoin network activity has been steadily declining, contributing to BTC’s recent narrow price movements. If this continues, “we must consider the possibility of another prolonged consolidation phase, similar to what began in March 2024,” the analyst says.

One such data Avocado considers is the number of daily active wallet addresses on the Bitcoin network. According to CryptoQuant’s data, when observed using a 30-day small moving average (SMA), the daily count of addresses that have completed at least one BTC transaction has plummeted by 2% since February 1.

A decline in active daily wallets on the Bitcoin network signals reduced user demand. This can contribute to downward price pressure on the coin, as decreased network activity typically aligns with lower buying interest.

In addition, Avocado reports that “the number of UTXOs is also decreasing, with the magnitude of the decline similar to the correction period in September 2023.”

Unspent Transaction Output (UTXO) tracks the amount of Bitcoin left after a transaction, which can be used as input for future transactions. It represents the available balance that can be spent on the network. When the number of UTXOs declines, fewer new coins are being distributed or moved, suggesting reduced transaction activity. This indicates a period of consolidation, where investors are holding rather than spending their coins.

“If this trend continues, we could see signs of investor exodus similar to the market cycle peak of 2017. However, a simple decline in UTXOs alone is not enough to confirm the end of the current cycle, as other indicators still suggest a bullish outlook,” Avocado writes.

Bitcoin Hovers Near Key Support—Will It Hold or Break Lower?

As of this writing, BTC trades near the support line of its horizontal channel at $95,527. If the Bitcoin network activity wanes, further affecting the demand for the king coin, its price could break below this level. In this scenario, BTC could drop to $92,325.

On the other hand, if market trends shift and the buying pressure gains momentum, the coin could rally toward the resistance at $99,031 and attempt a crossover. If successful, BTC could reach $102,665. 

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Crypto airdrop farmers have five confirmed valuable opportunities to receive free cryptocurrency tokens from projects backed by renowned investors.

Hub.xyz, OG Labs, Sentient, Monad, and Succint make for the top five crypto airdrops for the last week of February.

Hub.xyz

Decentralized Web3 social platform Hub.xyz confirmed its crypto airdrop, focusing on community engagement through AI training. The platform connects creators with brands through AI-powered solutions, leveraging artificial intelligence to analyze audience interactions and content trends.

The airdrop rewards users for active participation in training the platform’s AI agents through social interactions on X (Twitter). Participants earn IQ Points based on the quality and intelligence of their contributions, which can later be converted into HUB tokens during the Token Generation Event (TGE).

The campaign entails direct participation rewards and a referral program. Users maximize their potential earnings when they invite others to join the platform.

“[Tips to maximize rewards include] providing thoughtful and intelligent responses when interacting with AI agents and engaging regularly with Hub.xyz’s content on X. Also, focus on quality over quantity in your interactions, reach the minimum level requirement (Level 4), and share your referral link with others to earn additional rewards. Accumulate at least 3,100 IQ points,” airdrops.io reported, citing Hub.xyz.

OG Labs

Crypto airdrop farmers can also interact with OG Labs (OG Network), a modular AI chain combining Layer 1 (L1) blockchain technology with decentralized AI capabilities. The project confirmed its airdrop following $325 million in funds raised from notable investors, including Hack VC, Animoca Brands, Delphi Ventures, OKX Ventures, and Samsung NEXT.

Based on this, the OG Network team allocated $88 million for their Ecosystem Growth Program. It includes various community initiatives and potential rewards for early participants. The exact airdrop structure remains unannounced, but the project has launched multiple testnet activities and community engagement programs.

Farmers can now participate in testnet activities and various tasks that may contribute to future airdrop eligibility. The team emphasizes active participation in the ecosystem’s development through testing and community engagement.

Sentient

Blockchain service Sentient is also on the list of top crypto airdrops for the last week of February. The project raises $85 million in a three-tier fundraiser co-led by industry titans like Pantera Capital, Framework Ventures, and Founders Fund.

Sentient added the opportunity to interact with Dobby, an AI model developed by Sentient Foundation for NFT Holders. With it, users can communicate with the AI and rate the answers. This is one of the first activities to start testing the Sentient product. It also updated Dobby to V2.

Further, Sentient is collaborating with Fraction AI, introducing a space where users can join, earn fractals, and keep farming the Fraction AI airdrop.

“Fraction AI has teamed up with Sentient to launch a new space where you can join and earn fractals! By completing this update, you will be using Sentient’s Dobby-mini while farming the Fraction AI airdrop. Plus—a $5K reward pool is also up for grabs,” sector researcher Airdrop Adventure reported.

Monad

Monad, which raised $244 million with DragonFly Capital and Paradigm co-leading the fundraiser, has joined the list of top crypto airdrops this week. The project launched the testnet on February 19, and users have already requested test tokens.

“Monad testnet is live,” the project revealed recently.

The project rewards participation, with Discord roles reflecting user time in the community and their contribution style.

“If you have a “Full Access” role in the Monad Discord, you will receive 5 MON. If you hold at least 0.01 ETH on the Ethereum Mainnet and have made an outgoing transaction, you will receive 2 MON. All others will receive 0.05 MON,” Cryptorank reported, citing Monad.

Succinct

The top crypto airdrop to watch this week is Succint, a blockchain infrastructure project that raised $55 million from Paradigm, Robot Ventures, and Bankless Ventures, among others.

Succinct also launched its testnet, which is quite difficult to participate in because of the limited number of testers. Only 20,000 users have access to the testnet for now, but new spots will come up over time.  

“The Succinct Prover Network Testnet is LIVE. Generate proofs, earn stars,” Succinct said.

Participants need to play all available games and earn stars in return. These stars can be claimed on the stars tab, and users can track their progress on the leaderboard.

Notably, the Succint team will attend the ETH Denver this week and has committed to “secret special sessions” with crypto and blockchain sleuths.