Bitcoin Network Sees Lowest New Addresses Created Since 2018
Bitcoin (BTC) network activity has significantly declined in the creation of new addresses, hitting its lowest point since July 2018.
Despite this, though, BTC is trading around $67,000 after gaining over 7% in the past week.
Bitcoin Network Activity Declines
Data from the market intelligence platform IntoTheBlock reveals a 7-day average of only 276,000 new Bitcoin addresses. The low numbers show a significant decline in new investors entering the crypto space, a sharp drop from 625,000 six months ago.
Someone should address the bear in the room
The number of new $BTC addresses is hitting multi-year lows. The 7-day average dropped to 276k last week, a level we haven’t seen since July 2018.
Is this because ETFs are acting as a proxy for new users? Are people moving… pic.twitter.com/1v9JeauxQG
— IntoTheBlock (@intotheblock) May 17, 2024
The “New Addresses” indicator tracks the daily creation of new wallets on the BTC network. High metrics typically signify an influx of new investors. However, returning investors and holders creating multiple wallets for privacy also contribute to this number. Despite this, a high number of new addresses generally signals long-term bullish sentiment for Bitcoin.
In addition to the drop in new addresses, other related indicators have shown a downward trend. Miners’ revenue, measured by computational power, has reached a new historical low. Transaction fees and on-chain transaction volume have also decreased, showing a general plunge in Bitcoin network activity.
Typically, increased network activity signals rising demand and price stability. However, the current decline suggests investors may be shifting towards derivatives speculation rather than organic use.
Spot ETFs Divert Interest from On-Chain Transactions
The recent approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has provided investors with a traditional investment route into BTC. Potentially, this has diverted interest away from on-chain transactions and contributed to the decline in new addresses.
As a result of these changes and the high transaction fees following excitement surrounding Runes, the seven-day moving average fell below 700,000 for the first time since March 2020. Meanwhile, although fees have stabilized, decreasing from an average of $31.4 on April 23 to $2.97 on May 18, the number of active addresses remains low.
Lower network activity, evidenced by a multi-year low in the 30-day active address count, suggests reduced demand for Bitcoin transactions. This metric, which tracks different addresses participating in transactions over 30 days, has dropped to 12.64 million, a level last seen in February 2019.
The broader crypto market slowdown might have also contributed to the decline. According to CoinGecko, the global crypto market cap today is $2.53 trillion, a 0.7% plunge in the last 24 hours. Most altcoins, such as Ethereum (ETH), BNB, XRP, and Toncoin (TON), have been trading in the red over the past day.
The post Bitcoin Network Sees Lowest New Addresses Created Since 2018 appeared first on CryptoPotato.
Welcome to Billionaire Club Co LLC, your gateway to a brand-new social media experience! Sign up today and dive into over 10,000 fresh daily articles and videos curated just for your enjoyment. Enjoy the ad free experience, unlimited content interactions, and get that coveted blue check verification—all for just $1 a month!
Account Frozen
Your account is frozen. You can still view content but cannot interact with it.
Please go to your settings to update your account status.
Open Profile Settings