Recent on-chain data indicates a surge in new address creation on the Bitcoin network as BTC price has exceeded $103,000.
Increase in Bitcoin Network Activity
A recent post by the analytics company Santiment highlights a notable trend in Bitcoin’s Network Growth. This term refers to the daily count of new BTC addresses established by users.
An address is deemed ‘created’ when it is first used for a transaction on the network. Various reasons can lead to heightened address generation.
The influx of new users and the return of previous users who previously sold contribute significantly to the rise in Network Growth. The metric can also rise when existing users set up multiple wallets for privacy or other purposes.
These three elements likely contribute to the observed spikes in Network Growth, suggesting a general increase in cryptocurrency adoption.
Below is a chart from Santiment displaying Bitcoin Network Growth trends over the past month:
The chart reveals that Bitcoin Network Growth has climbed alongside the recent price uptick, indicating a surge in demand for Bitcoin addresses. This surge is not unexpected; sharp price movements often attract attention, prompting more investors to engage with the blockchain during such exciting times.
Historically, BTC price rallies have been successful when they capture significant attention, as new capital is vital for sustaining these price movements.
In just the last day, following Bitcoin’s rise past $103,000, over 344,620 new addresses were created, pointing to a substantial influx of users.
In related news, analyst James Van Straten mentioned on X that BTC Open Interest has remained low compared to the market cap.
Open Interest measures the total number of active derivatives positions in Bitcoin across centralized exchanges. Historically, rallies driven by spot market activity have proven to be more stable, so the current low Open Interest could bode well for Bitcoin’s future performance.
Current BTC Price
As of now, Bitcoin is trading at approximately $103,500, reflecting a rise of nearly 7% over the past week.
