Ethereum killers and layer-2 tokens rally despite 5% Bitcoin price drop
BTC Rally Pushes New Bitcoin Addresses To 3-Year High
New Bitcoin Addresses Soar To 3-Year High.
Only the January 2018 record remained unbeaten.
These data may indicate an increase in mass adoption of bitcoin and individual investment..
The number of new addresses on the bitcoin network has reached its highest level since January 2018, according to the latest data from Glassnode.
Analytics service GlassNode reported on November 18 on Twitter that the 24-day average of new addresses created on the Bitcoin network soared to its highest value since January 2018..
In January 2018, shortly after the Bitcoin exchange rate (BTC) hit an all-time high of $ 19,783, general public interest in this cryptocurrency also reached record levels. At that time, the 24-day average value of new addresses exceeded 600,000.
Now the indicator has not managed to break this record, but it has grown significantly above the psychological level of 500,000.
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In the past hour we observed the highest number of newly created addresses in the #Bitcoin network since January 2018
Chart: https://t.co/fTmoH5ezNw pic.twitter.com/INq7sEEtoM
– glassnode (@glassnode) November 18, 2020
500,000 and above
According to GlassNode data, as of November 18, the 24-day average of new addresses created on the bitcoin blockchain almost reached 550,000. By comparison, in April 2020, this figure was just over 350,000..
In the chart below, you can see that the indicator has shown a slow but steady gain over time since it bottomed out around 250,000 in April 2018..
The main difference from the situation with January 2018 is the fact that at that time the BTC had already rolled back by 17 +% from the previously achieved historical maximum and was preparing to enter the protracted bear market, which covered almost the entire 2018. The current jump in the indicator began more quickly and is taking place against the background of the still continuing growth of bitcoin. Many market participants believe that cryptocurrency can still set new records.
In theory, if we take into account the positive correlation between new address creation and private investment and mass adoption, this could be an indication that the current bull market may be longer than rally 2017.
What are the possible consequences
The most obvious consequence of these trends is reaching new levels of mass adoption of cryptocurrencies and investments. This has the potential to further strengthen Bitcoin’s current surge. The arrival of a large number of new users and investors on the market will indicate that the current organic growth is due not only to the money of institutional investors..
This is the opinion of, for example, Willie Wu, a popular analyst in the crypto community. He is confident that BTC is showing a loss of correlation with institutional stocks and capital..
As the BeInCrypto editorial staff said in September, Wu believes that the main drivers of Bitcoin’s dynamics will be indicators of its internal use and adoption, that is, organic growth of users, and not external investment.
If you want to see data behind the upcoming decoupling of BTC from the stock markets powered by BTC’s internal adoption, here’s some @glassnode data. This is the active users of BTC after filtering for unique players (ignores multi wallet addresses belong to one entity). https://t.co/FvGWUUlSc8 pic.twitter.com/gEweb9vYOY
– Willy Woo (@woonomic) September 26, 2020
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