A leading analytics platform says a crucial metric is a bullish signal for Bitcoin (BTC) and Ethereum (ETH).
According to IntoTheBlock, the number of daily active addresses for both Bitcoin and Ethereum has declined after surging above $60,000 for the first time in May 2021.
The analytics firm is now noting that the number of active addresses for BTC and ETH is stabilizing, suggesting that more people are using the top 2 crypto today than before the previous bull run.
“Ethereum and Bitcoin saw a significant drop in daily addresses after May 2021 [high] for prices. Active addresses quickly stabilized and have been at a constant level ever since…
We see around 36% more active addresses for Ethereum (327,000 addresses on March 8, 2020 compared to 514,000 addresses on December 1, 2022). Bitcoin has made more modest gains with about [a] 20.6% increase in active addresses (826,000 on March 9, 2022 compared to 1.04 million on December 1, 2022).”
Source: IntoTheBlock/Medium
Source: IntoTheBlock/Medium
The market research firm tracks daily active addresses in its analytics app, which measures how many wallets made at least one transaction on any given day. According to the analysis company, more active addresses indicate broader acceptance.
The analytics firm also says that the number of active addresses for BTC and ETH has remained stable over the past year despite the troubling macroeconomic conditions.
“The gains in new active addresses since price all-time highs in November 2021 are encouraging. Despite the chaos in the markets in 2022, the number of active users has remained relatively stable over the last year.
This could indicate that we are at or near the bottom of the market cycle for active addresses and thus at or near the bottom of user churn… Aside from a black swan event, we seem to have found something that represents a bottom for active addresses resembles.”
At the time of writing, Bitcoin is changing hands at $17,050 and Ethereum at $1,288.
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