- The New Year’s rally further boosted adoption of the BTC network as more than 4.36 million non-zero addresses were added.
- Bitcoin remains immune to the aggressive stance of regulatory authorities
The crypto market was devastated last year by two major implosions: the collapse of Terra [LUNA] in May and the bankruptcy of crypto exchange FTX in November, which ultimately plunged it into crisis. However, during the periods of turmoil Bitcoin is the only thing that has remained resilient [BTC]the first and oldest crypto asset on the market.
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According to on-chain analytics company Glassnode, addresses with a non-zero amount of BTC coins have increased by more than 5.4 million in the past year.
About 1.06 million wallets have been added in the period from the collapse of LUNA to FTX. The New Year’s rally has further boosted adoption of the BTC network as more than 4.36 million non-zero addresses have been added since the fall of FTX.
Source: Glassnode
King coin is high
Healthy network adoption is characterized by growth in the number of daily active users and increased transaction throughput. The chart below compares the monthly average of new addresses to the annual average and captures Bitcoin’s journey through 2022.
The monthly average fell below the yearly average, indicating contraction in on-chain activity and reduced network usage.
However, network activity recovered steadily and was unfazed during FTX’s collapse, as the monthly average of new addresses in the latter part of 2022 and the 2023 bull rally remained above the annual average.
The recent dip had more to do with the low volatility phase in the market than Bitcoin’s weaknesses.
Source: Glassnode
In addition, daily transactions on the Bitcoin chain have grown steadily over the past four months, with May recording record-breaking traffic. With the network bogged down with transactions, miners’ fortunes skyrocketed. This was due to users paying additional fees to have their transactions validated, as noted below.
Source: Glassnode
The trend started with NFTs hitting. However, the recent frenzy has been driven by the bulk minting and trading of BRC-20 tokens. It greatly expanded the usefulness of Bitcoin, previously limited to use as a payment network until 2022. Thus, it stimulated mainstream acceptance.
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BTC isolated from regulators
Regulatory authorities have tightened their grip on crypto entities in recent months. The recent back-to-back moves on giants like Binance and Coinbase, with major altcoins also in the firing line, have cemented Bitcoin’s image as a reliable decentralized asset that has remained immune to the aggressive stance of outside agencies.