In a notable metric to measure how Bitcoin’s popularity is soaring new heights, Glassnode has brought to notice that the active participation in the Bitcoin network has risen to exponential levels which were last seen in December 2017 especially when Bitcoin established record highs near $20,0000.
A general outlook of Active Bitcoin addresses
Let us first observe this chart from Bitinfocharts. As is visible, the Bitcoin Active addresses have increased and decreased along the journey. The peak performance of Bitcoin in terms of its addresses reached a new acme in December 2017, mid-month when the total number of active addresses was 1.037 million. But immediately after the month got over, the beginning of 2018 registered a deep plunge in the active bitcoin addresses counts.
The same momentum carried out that entire and half of 2019 when finally on 24th June 2019, it reached a new high of 856.21k addresses as against 613.329k addresses at the beginning of the same month. But right now in October 2020 as of today, after Bitcoin has endured several highs and lows and crashes also, the figure stands at 851.402k active address showing that it is growing from strength to strength.
Glassnode’s analysis of the increase in the cluster of active addresses
The popular crypto-data provider Glassnode noted that the number of active entities or a bundle of addresses controlled by a single network participant has increased to 388,697 yesterday. This is the highest ever recorded since December 9th, 2017. In the past 5 days or so, the metric has almost doubled coinciding with the bullish rally that Bitcoin is enjoying right now. The Bitcoin’s rally from $11,350 to $13,300 was the most cheerful news about Bitcoin this week.
A company spokesperson for FCA-regulated crypto index provider CF Benchmarks also said:
“It shows active participation in bitcoin is growing”
Apart from the rally, PayPal the biggest payment giant has also announced that it will be support Bitcoin for payments which also can be a huge reason for cheer. This will lead to the widespread adoption of Bitcoin in retail circuits especially when Bitcoin is viewed as a corporate investment tool.
The numbers do the talking
The count of active entities is closing on the record-high of 411,127 figures on December 9th, 2017, but at the same time, Bitcoin’s price is still plunging by 53% considering its lifetime high of $20,000. Along the same line, the seven-day rolling average of Bitcoin’s hashrate rose to a huge high of 146 exahashes per second, registered earlier this month.
Over a period of time, slowly but continuously there is a marked rise in the network usage which also is leading the price chart to increase. The Blockchain intelligence firm Chainanlysis also has an opinion on this. Its Chief economist Philip Gradwell said:
“When there’s greater usage, there’s more demand for the cryptocurrency, and that drives the price up.”