Despite the high transaction demand for Bitcoin, the active addresses have sharply dropped recently, according to the latest weekly report from Glassnode. The active addresses metric measures the daily number of unique Bitcoin addresses participating in some transaction activity on the blockchain. This restriction exists because the number of unique addresses can serve as an analog to the number of unique users visiting the blockchain. Another indicator that’s made for tracking activity on the Bitcoin blockchain is the transaction count, which tells us about the daily total number of transfers taking place on the network. The reason behind this explosion in the transaction count is the emergence of BRC-20 tokens, fungible tokens created on the BTC blockchain using the Ordinals protocol. It would mean that while the demand for making transactions is super high right now, the demand isn’t actually coming from a large number of users but a rather small number of them, who are constantly making repeat transfers. At the time of writing, Bitcoin is trading around $27,400, down 1% in the last week.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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