Gauging the health of any cryptocurrency is a very complex procedure. Looking at the number of active addresses can often provide a strong indication. In Bticoin’s case, the current number of active addresses has reached a level not seen since 2018.
Increasing Number of Bitcoin Active Addresses
Before any cryptocurrency can succeed, it needs to be used by as many people as possible. Achieving this goal is often far more difficult than one would assume. A lot of people are either not interested in cryptocurrency or worry about the inherent volatility. As Bitcoin has shown the world in recent weeks, its price swings remain rather legendary first and foremost. What seemed to be a sure bet of hitting $12,000 again has now turned into a struggle to remain above $10,000.
One aspect not affected by this volatility all that much is the number of active addresses. More specifically, the number of Bitcoin active addresses has surpassed 1 million again, based on a seven-day moving average. Back in January of 2019, this number cratered to 552,355 addresses. Crypto Winter has caused some big changes in the overall landscape, either for better or worse. Today’s levels mimic those of late January 2018. All in all, it seems Bitcoin is in a healthy state.
It is also worth noting the peak in Bitcoin active addresses was recorded in December of 2018. At the time, there were 1,190,302 active Bitcoin addresses. That peak has never been reached since. The current growth trend seems to indicate that this record is well within reach once again. Reaching a new record will be beneficial to the Bitcoin ecosystem as a whole.
A Big Gap With Other Projects
Comparing the number of active blockchain addresses shows Bitcoin is the king of cryptocurrency. Ethereum comes in second place, with 476,106 addresses. Surprisingly, TRON is in third place, with nearly 316,000 addresses. Both of these blockchains are well behind Bitcoin, and will probably remain there for some time to come. Other projects, including Tether, Litecoin, and Dash rank ahead of the Bitcoin forks as well. Neither Bitcoin Cash nor Bitcoin SV represents any noteworthy activity in this department.
Attaining the level of “adoption” Bitcoin currently displays is challenging for alternative assets. They have to bring something to the table that is both unique and can get people excited. So far, no project has come close to rivalling Bitcoin just yet, but that situation can always change in the future.
Ethereum is clearly ahead of any other project in terms of making an attempt. Increasing the number of active addresses will be a tall order, although the launch of Ethereum 2.0 may introduce some interesting changes.