Bitcoin Magazine Pro
[1]Entities transacting on Bitcoin, network value and the number of addresses with non-zero balances all continue to grow, pointing toward greater adoption.
Entities transacting on Bitcoin, network value and the number of addresses with non-zero balances all continue to grow, pointing toward greater adoption.
The below is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine's premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now[2].
In today’s issue, we’re covering the latest state, health and growing valuation of the Bitcoin network. As price faces another major cyclical all-time high drawdown seen several times over bitcoin’s lifetime, there are growing fundamentals under the surface that continue to set higher floors for valuation.
One of those key metrics is the growth of active entities on the network. Active entities are estimated clusters of addresses that are controlled by the same individual, institution or market participant. “Active” is defined as having received or sent bitcoin on that day. It’s derived from Glassnode’s data science and heuristics techniques so it’s an imperfect measure, but one that has done well at tracking growing demand over time. More on their methodology can be found here[3].
Looking at the chart below, active entities have more than doubled since 2016 — from 126,904 to 255,333. The past two cycle tops were preceded by elevated growth and spikes in active entities, reaching 376,549 and 432,636 in 2016 and 2021 respectively. As each cycle has printed new highs in active entities, the subsequent bottoms have seen a trend of higher lows. This paints a clear picture of the growing number of new “users” that are using Bitcoin’s on-chain
