Bitcoin network continues to record a growing number of transactions on its blockchain despite the asset’s high volatility throughout 2022. The number of addresses generated on the network has been a part of significant activity, suggesting broad market sentiment surrounding the flagship cryptocurrency.
According to data published by crypto analytics platform Glassnode, the number of BTC addresses has surpassed one billion for the first time, reaching 1,000,002,559 as of July 12.
Increase in new bitcoin addresses
It’s worth noting that recent cryptocurrency turmoil has decreased investors’ interest in getting involved with BTC, as the overall market appeared to avoid high-risk assets. While Bitcoin is known to be pricey, its price drop appears to have motivated investors to join the network.
“The relationship between discussions related to BTC vs. all cryptocurrencies have increased rapidly on social media. BTC’s social dominance is now at its highest point since June, 2021. Historically, the focus on returning to BTC is a good sign for cryptocurrency, ”Santiment tweeted.
Over the years, buying on the decline has become a popular investment technique, especially for those wanting to make long-term gains. The trend is probably driven by retail investors who may be buying BTC to profit from a new all-time high, and the present figure could suggest a more significant trend.
Overall, the number of BTC addresses should be seen as a bullish indicator for the asset that has been unable to break $20,000. By tomorrow, Bitcoin will have dropped by almost 4% in the last 24 hours and was trading at $19,700.
Bitcoin 7-day price chart. Source: CoinMarketCap
Although the number of BTC addresses is increasing, it does not necessarily indicate that people own the asset. On the other hand, the figure helps give a broad perspective of Bitcoin’s adoption.
Some people have multiple BTC addresses to send and receive transactions. It’s fascinating to note that the growing number of investors may be attributed to the need for some individuals to process each BTC transaction on a new address as part of their privacy concerns.
Bitcoin’s address usage has remained steady
Furthermore, the number of addresses with any BTC is a tiny fraction of all created addresses. According to Finbold, the 40 millionth Bitcoin address was created for the first time this year.
With 1 billion addresses now in use, the ones with any quantity of BTC have likely increased.
