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On-chain data shows the Bitcoin network is currently noting an uptick in Daily Active Addresses. Here’s what this could mean for BTC’s price.
Bitcoin Active Addresses Just Crossed The 800,000 Mark
In a new post on X, the market intelligence platform IntoTheBlock has discussed about the latest trend in the Daily Active Addresses of Bitcoin. The “Daily Active Addresses” here is an on-chain indicator that keeps track of the total number of BTC addresses that are becoming involved in some kind of transaction activity on the network every day.
When the value of this metric rises, it means the number of users becoming active on the blockchain is going up. Such a trend can be a sign that the interest in the cryptocurrency is on the rise.
On the other hand, the indicator going down implies investors may be shifting their attention elsewhere as not many of them are coming online to make moves on the network.
Now, here is the chart shared by the analytics firm that shows the trend in the Bitcoin Daily Active Addresses over the past decade:
As displayed in the above graph, the Bitcoin Daily Active Addresses has witnessed a jump recently, suggesting user activity has grown on the network. This uplift in the indicator has come after the cryptocurrency has witnessed a price rally.
Historically, the blockchain has tended to become active during volatile periods, as investors usually come online to reposition themselves in such phases. As such, the latest spike in the Daily Active Addresses may not be too surprising.
Generally, rallies only end up being sustainable when they can attract user attention, as it’s the increased chain activity that can provide the fuel such a move needs to keep going. Price surges that are unable to induce an increase in the metric usually fizzle out before long.
Given that the Daily Active Addresses has jumped recently, the current recovery rally may at least be in the clear in terms of this, if the activity spike indeed corresponds to demand from the investors.
That said, while there has indeed been renewed activity on the Bitcoin network recently, the indicator’s current value of about 800,000 is still not too high when compared to the past.
Last year, the Daily Active Addresses managed to hit a high of 900,000. This value was still notably lower than the 1.2 million high that the blockchain saw during the past two bull markets.
BTC Price
Bitcoin has taken to sideways movement during the last few days as its price is still trading around the $94,800 level.
