A leading analytics platform says that one crucial metric is flashing a bullish signal for Bitcoin (BTC) and Ethereum (ETH).
IntoTheBlock says the number of daily active addresses for both Bitcoin and Ethereum dropped off after surging above $60,000 for the first time in May 2021.
The analytics firm now notes that the number of active addresses for BTC and ETH are stabilizing, indicating that more people are using the top two crypto today than before the previous bull run.
“For Ethereum and Bitcoin, there was a clear drop off in daily addresses, after the May 2021 [high] for prices. The active addresses stabilized quickly and have been at consistent levels since then…
We see around a 36% increase in active addresses for Ethereum (327,000 addresses on March 8th, 2020 compared to 514,000 addresses on December 1st, 2022). Bitcoin has seen more modest gains with about [a] 20.6% increase in active addresses (826,000 on March 9th, 2022 compared to 1.04 million on December 1st, 2022).”
The market intelligence firm tracks daily active addresses on its analytics app, which measures how many wallets have made at least one transaction in a given day. More active addresses indicates wider adoption, according to the analytics firm.
The analytics firm also says that the stability in the number of active addresses for BTC and ETH has occurred despite the troubling macroeconomic conditions during the past year.
“The increases in new active addresses since the price all-time highs in November of 2021 are promising. Even with 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 a market cycle bottom for active addresses and therefore at or near the bottom of user attrition… Barring a black swan event, it seems that we have found what resembles a bottom for active addresses.”
At time of writing, Bitcoin is changing hands at $17,050 and Ethereum at $1,288.
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