A leading analytics platform says a crucial metric is flashing a bullish signal for Bitcoin (BTC) and Ethereum (ETH).
IntoTheBlock says that the number of daily active addresses for both Bitcoin and Ethereum fell after rising above $60,000 for the first time in May 2021.
The research firm now notes that the number of active addresses for BTC and ETH is stabilizing, indicating that more people are using the top two cryptos today than before the previous bull run.
“For Ethereum and Bitcoin, there was a clear drop in daily addresses, after May 2021 [high] for prices. The active addresses quickly stabilized and have been at consistent levels ever since…
We see an increase of around 36% in active addresses for Ethereum (327,000 addresses on March 8, 2020 compared to 514,000 addresses on December 1, 2022). Bitcoin has seen more modest gains with approx [a] 20.6% increase in active addresses (826,000 on March 9, 2022 compared to 1.04 million on December 1, 2022).”
The market intelligence firm tracks daily active addresses on its analytics app, which measures how many wallets have made at least one transaction on a given day. More active addresses indicate wider adoption, according to the research firm.
The research firm also says that the stability in the number of active addresses for BTC and ETH has occurred despite the troubling macroeconomic conditions of the past year.
“The increase in new active addresses since the all-time prices in November 2021 is promising. Even with the chaos in the markets in 2022, the number of active users has remained relatively stable over the past year.
This may indicate that we are at or near a market cycle bottom for active addresses and therefore at or near the bottom of churn… Barring a Black Swan event, we appear to have found something resembling a bottom for active addresses. »
At the time of writing, Bitcoin is changing hands at $17,050 and Ethereum at $1,288.
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