Bitcoin Adoption: Addresses Saw 2nd-Highest Rise In History This Weekend

Keshav Verma

1 year ago

3 mins read

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On-chain data shows the Bitcoin network saw new addresses crop up at the second-highest rate in history during the past weekend.

Bitcoin New Addresses Metric Shot Up During This Past Weekend

According to data from the market intelligence platform IntoTheBlock, BTC has just observed its highest number of new addresses since 2017. The relevant metric here is the “new addresses,” which simply keeps track of the total number of new addresses appearing on the Bitcoin network every day.

Generally, new users coming into the network aren’t the only ones generating new addresses as existing holders of the asset may also create new addresses for better privacy of their transactions and other purposes like dividing funds into multiple wallets.

Regardless of this, a good chunk of the new addresses being created on any given day are indeed signs that new investors are coming into the market, so the indicator can provide us with hints about how the adoption of the cryptocurrency is coming along.

When this metric has a high value, it naturally means that a large number of addresses are coming online for the first time on the blockchain, which could suggest that new traffic is being attracted to the blockchain currently.

Now, here is a chart that shows the trend in the Bitcoin new addresses over the past year:

Looks like the value of the metric has been quite high in recent days | Source: IntoTheBlock on X

As displayed in the above graph, the metric’s value shot up during the weekend that has just passed by, suggesting a significant amount of address creation has occurred.

At the peak of this spike, the daily value of the metric had been about 719,000 addresses, which is the highest that the indicator has been since 2017. The spike in 2017 is an all-time high for the daily new addresses, which means that this latest value is the second-highest spike that the asset has ever seen.

This extraordinary influx of new addresses on the network would imply a large amount of investors have decided to enter into the market. Historically, adoption has been a constructive sign for the cryptocurrency, as a large user base provides for a more solid foundation for sustainable growth in the future.

Any positives arising from adoption, however, typically don’t appear in the short-term periods, as the effect only plays a role for the asset in the longer timespans.

BTC Price

Bitcoin has continued to struggle recently as the asset has been devoid of any sort of real volatility. At present, the asset’s price is floating around the $25,600 mark.

These recent prices may be what has pushed new users toward the network, as they may have found the current lows to be a viable entry point into the market.

However, as mentioned before, this adoption is unlikely to be of any help to the cryptocurrency right now, unless the users coming in are the likes of the whales.

BTC seems to have been stuck sideways recently | Source: BTCUSD on TradingView

Featured image from Aleksi Räisä on Unsplash.com, charts from TradingView.com, IntoTheBlock.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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