Metric Shows Bullish Signal for Bitcoin and Ethereum, Says Crypto Insights Platform IntoTheBlock

A leading analytics platform indicates that a crucial metric is showing a bullish signal for Bitcoin (BTC) and Ethereum (ETH).

IntoTheBlock reports that the number of daily active addresses for Bitcoin and Ethereum has fallen after hitting $60,000 for the first time in May 2021.

The analytics firm now notes that the number of active addresses for BTC and ETH is stabilizing, indicating that more people are using the top two cryptos today than before the previous bull run.

“For Ethereum and Bitcoin, there was a sharp drop in daily addresses, after May 2021 [high] for prices. Active addresses stabilized quickly and have been at consistent levels ever since…

We see an increase of around 36% in active addresses for Ethereum (327,000 addresses as of March 8, 2020 versus 514,000 addresses as of December 1, 2022). Bitcoin saw more modest gains with around [a] 20.6% increase in active addresses (826,000 on March 9, 2022 compared to 1.04 million on December 1, 2022).

Source: IntoTheBlock/Medium
Source: IntoTheBlock/Medium

The market intelligence firm tracks daily active addresses on its analytics app, which measures the number of wallets that have made at least one trade in a given day. More active addresses indicate wider adoption, according to the analytics firm.

The analytics firm also claims that the stability in the number of active addresses for BTC and ETH has occurred despite troubling macro conditions over the past year.

“The increase in the number of new active addresses since the record prices of November 2021 is promising. Even with the chaos of the markets in 2022, the number of active users has remained relatively stable over the past year.

This could indicate that we are at or near a trough in the market cycle for active addresses and therefore at or near the trough of user churn… Barring a black swan event, it looks like we have found what looks like a dip for active addresses.

At the time of writing, Bitcoin is changing hands at $17,050 and Ethereum at $1,288.

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