Bitcoin’s bull run this year has seen on-chain activity surge along with the flagship cryptocurrency’s price, to the point the number of daily active addresses is now nearing 1 million after its first prolonged increase in three years.
According to data from on-chain analytics firm IntoTheBlock, Bitcoin’s long-term activity trend has “decisively shifted” as on-chain activity is seeing “significant growth” amid BTC’s price rise.
Bitcoin's long-term activity trend has decisively shifted, with on-chain activity seeing significant growth.The number of daily active addresses is approaching 1 million, representing the first prolonged increase of this scale since 2021. pic.twitter.com/PheqxY52ej
— IntoTheBlock (@intotheblock) November 26, 2024
It’s worth adding that a daily active address doesn’t necessarily mean a daily active user, as anyone can create as many Bitcoin addresses as they would like to, and experts often recommend the use of various addresses for privacy and security purposes.
The figure likely doesn’t represent one million active users, but it’s worth noting that many use BTC within cryptocurrency exchanges, whose addresses often bundle the funds of various users and end up representing the assets of numerous users rather than those of a single entity.
On top of that, many invest in cryptocurrency and store their funds in cold wallet solutions that aren’t touched for years as long-term holders prefer these solutions for the added benefits to security.
Bitcoin is at the time of writing trading at around $92,000 after seeing a steep correction of over 6% over the last 24-hour period, amid a price decline that started after it nearly hit the $100,000 mark. BTC is up more than 144.5% over the last 12 months.
As reported, the Coinbase Premium Index, which measures the price difference between BTC on Coinbase and other exchanges, has recently “disappeared.”
According to a post from CryptoQuant analyst “maartunn,” the index disappeared “as soon as Bitcoin tagged $98,000,” which means that spot exchange-traded funds (ETFs) will have to “step up” to “keep the price elevated.”
The Coinbase premium index is an indicator showing the price gap between Coinbase’s BTC/USD trading pair and Binance’s BTC/USDT pair. When the premium is positive, it shows buying pressure on the exchange is heating up.
A deeply discounted premium suggests weak buying pressure from American investors, a trend that has coincided with past Bitcoin price bottoms.
Featured image via Unsplash.
