- Bitcoin user adoption increased despite the decline in address growth.
- More BTC transactions have taken place since the last halving.
Despite the occasional hurdles, Bitcoin [BTC] has gained significant traction as the number of non-zero addresses reached an All-Time High (ATH). According to Glassnode, the stat stood at 46.1 million at the time of writing.
Read From Bitcoin [BTC] Price prediction 2023-2024
This increase in adoption can be linked to a number of factors, such as its growth recognition. And this year, the cryptocurrency has shown that it can be a hedge against inflation. This was after the currency’s reaction amid the collapse of several traditional financial institutions.
New entrants have their eyes on the prize
While this growth can be considered impressive, there is also a decline in another aspect – the era. The Bitcoin Epoch tracks market patterns in terms of address growth between one four-year halving cycle and the next.
According to Glassnode, the Epoch is up 4.54% at the time of writing. However, the number of addresses added was 16 million, less than the previous cycle, which was 21 million.
#Bitcoin adoption continues to rise as the number of non-zero addresses reaches an ATH of ~46.1 million.
When comparing growth across epochs, we see a decrease in relative growth, but an increase in absolute growth as the number of non-zero addresses continues to grow:
🔴 Epoch… pic.twitter.com/iXFw52Y5eD
— glassnode (@glassnode) May 6, 2023
From Bitcoin’s inception to its first halving cycle, addresses have increased by a million. The second Epoch recorded 8x the first, while the third cycle added another 3x. However, with about 368 days until the halving, there was still time for the fourth to follow the same pattern.
Meanwhile, since the unfortunate capitulation in 2022, there has been a remarkable uptick in Bitcoin market valuation. For the unknown, Bitcoin supply and demand determine its market value.
With an indexed growth of 271% since the last halving, the market valuation had risen to $558 billion. This reflects an increase in demand for the coin and its popularity over a longer period of time.
Source: Glassnode
BTC builds up the hash
In addition to indexed growth, hashrate is a metric that has risen sustainably over the last halving period. The Bitcoin hashrate acts as a measure of computing power and is used to measure health, mining difficultyand security within the Bitcoin network.
At the time of writing, the hashrate had grown exponentially by 184.59% and rose to 439.23 Exahash per second (EH/s).
Source: Glassnode
Despite the unfortunate events that rocked the crypto economy for most of the quarters in 2022, realized profit/loss growth improved from the last halving.
Is your wallet green? Check the Bitcoin Profit Calculator
Source: Glassnode
At the moment of writing, on chain data showed that both the realized profit and the loss had increased by more than 300%. This confirms the idea that demand had subsequently increased and many coins were used in transactions during that period.
As the halving approaches, adoption could increase strengthens, especially as institutions have gradually embraced Bitcoin and allocated part of their treasury reserves to BTC. Moreover, more retail investors are also recognizing Bitcoin’s potential as a potential investment vehicle.