• On-chain data shows that demand for Bitcoin has been returning recently, but at a slower rate compared to previous cycles.
• The relevant indicator here is the “active addresses” which measures the daily amount of unique Bitcoin addresses participating in transaction activity on the chain.
• Recently there has been an increase in the active addresses, suggesting that more users are trading on the blockchain.
Bitcoin Demand Growing Again
On-chain data suggests that demand for Bitcoin is slowly growing again, though not as quickly as it did during past cycles.
Measuring Market Activity
The best way to measure this activity is with “active addresses” – a metric which counts the daily amount of unique Bitcoin addresses taking part in some kind of transaction activity on the chain. This metric takes into account both senders and receivers and only counts each address once even if it is involved in multiple transfers within a single day. When this value increases, it means that more users are engaging in transactions with Bitcoin indicating higher demand. Conversely, low values indicate fewer people transacting with the asset and thus lower demand.
Recent Changes
Recently active addresses have increased following a bottom formed during the previous cycle and a volatile move triggered by the FTX collapse. However, despite these recent changes, the rise in active addresses has still not been too significant yet when compared to past rallies.
Conclusion
It appears that while Bitcoin’s demand is slowly recovering, it still hasn’t gained back its full momentum from prior cycles just yet. Nevertheless, as more investors jump back into trading crypto assets like BTC this could change soon enough so keep an eye out for further developments!
Bonus Offer
Don’t wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today! BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? 570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io Play Now!