Bitcoin’s on-chain metrics such as the Active Address count [AA] have been growing steadfastly, despite the current market turmoil.
Active Addresses is a metric that includes all addresses sending and receiving BTC, providing a look at how active market demand is.
According to market intelligence firm, Santiment, in the last two months, the total amount of BTC addresses has grown by 1.71 million, an increase of nearly 4% in a relatively short period.
Following a year of subpar development, the number of AAs dramatically increased starting on March 18, as shown in the graph below. The most recent instance of this expansion occurred between March and June of last year.
Around 45 million addresses have already been created for Bitcoin, showing that the network is currently thriving.
Even with its 50% price increase, Bitcoin’s lackluster growth in Active Address this year worried many experts.
One such analysis took into consideration the on-chain volume and active address factors that characterize bull markets.
In a blunt assessment of the 2023 BTC price rebound, on-chain analytics platform CryptoQuant deduced that Bitcoin might be weaker than it appears.
“You can see that Active Addresses increased both during the 2019 bull market turnaround and when coming out of the 2020 COVID-19 shock,” Yonsei_dent, of CryptoQuant added.
“I am concerned that this 2023 rally did not show any rise in Active Addresses.”
But, the most recent spike in network activity during a turbulent moment has revived hopes that all is not yet lost.
It needs to be told that Bitcoin‘s value staged an astounding comeback after falling to new two-month lows beneath the $20k mark last week.
Bitcoin Cross $26k In 8 Months
This occurred after a series of crypto-friendly banks went under. However with a combination of bullish factors, which included the launch of a new bank liquidity program.
This helped USDC, a crucial component of the crypto market’s plumbing, recover back to its $1 peg, and analysts’ expectations that the risk of a banking crisis would prevent the Fed from undertaking significant further rate hikes, were other reasons, analysts believe that the market is currently up.
The coin reached the mid-$26,000s, its highest level since last June the mid-$26,000s earlier this week.
At the time of writing, BTC has mildly retraced back from its previous high to trade at $24303.