• This article discusses the recent trend in Bitcoin active addresses, which measure daily total amount of Bitcoin addresses participating in some transaction activity on the chain.
• Recent market activity has been slower than what previous cycles saw at a similar stage, with low values suggesting demand for the asset is currently low.
• The chart shows that the value of the metric hasn’t moved much in recent weeks, with some improvement being registered during recent rallies.
Overview: Bitcoin Active Addresses
On-chain data shows that demand for Bitcoin has been returning recently, albeit at a slower rate than previous cycles. An important indicator to measure this is “active addresses,” which measures the daily total amount of unique Bitcoin addresses taking part in some transaction activity on the blockchain. Low values imply not many users are making transfers on the blockchain at the moment, suggesting that demand for the asset is currently low.
Previous Cycles
The market activity changed rapidly after bottoming out during previous cycles and this can be seen from looking at active address metrics. An example of sudden activity returning can be seen around FTX’s collapse when price began to move sideways again and active addresses sank down once again.
Recent Rally
The latest rally in price of Bitcoin has caused an increase in active address metrics; however, it still hasn’t been as significant as other cycles before it.
Chart Analysis
A chart showing trends in active addresses over last few years reveals that there has been minimal change recently, with some improvement being registered during recent rallies.
Conclusion
In conclusion, while there have been signs of life returning to Bitcoin’s network through its active address metrics, it appears that current growth is slower than what was seen during past cycles at this stage of recovery.