Daily Bitcoin On-Chain Snap #15

The number of New BTC Addresses has doubled to 500,000 from July lows

This metric captures the number of unique addresses that appeared for the first time in a transaction of the native coin in the network. For comparison, new addresses ranged from 450,000 to 650,000 during the bull run in the first half of 2021. This number dipped to ~250,000 in July before strongly rebounding in the last 30 days to 500,000 on 7 October. This aligns well with the growing acceptance and ongoing narrative of BTC as a medium of exchange given El Salvador adopted the digital currency in August and Brazil may follow.

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Rebound in active BTC Addresses confirms ongoing adoption and growth of the BTC network

This metric captures the number of unique addresses that were active in the network either as a sender or receiver. Only addresses that were active in successful transactions are counted. This is important to understand in context of the historically low BTC reserves on exchanges, as it informs us that the activity has just moved elsewhere, and most likely to DeFi. As it would be difficult for activity to be as high based on exchange reserves alone. As such, active addresses have rebounded strongly during Q3 and are not too far from the late-April levels of ~1.4m active addresses.

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