Bitcoin Network Witnesses Massive Growth with 1 Million New Addresses in a Short Span

03/21/2023 10:17 • Crypto & Markets • 62 views

According to reports from Bitfinex, the Bitcoin network has grown by nearly 1 million new addresses. Buying BTCs belongs to the non zero balance category. After falling to about 43.8 million on or about February 23, 2023, the number of non zero balance wallets began to increase rapidly. Analysts at Bitlinex said that as new retail funds flooded into BTC, wallets with less than 1 BTC led the purchase. After evaluating order flow and on-chain data, price increases that exceed the high range can be attributed to spot purchases by large and small investors and traders.

Bitcoin’s non zero address hit a record high, exceeding 44.7 million

Bitcoin, once misjudged as a cryptocurrency hoax, has grown into a $1 trillion industry. Today, Bitcoin is a digital currency that can be used to buy goods and services or traded for other cryptos or even traditional currencies like dollars or euros. The underlying technology used to store and secure transactions is known as blockchain; a distributed, decentralized ledger that records all transactions that take place on the network. One of the most significant milestones achieved in the Bitcoin network in recent times is the addition of nearly 1 million new addresses to its network. In this article, we delve into what caused this sudden increase in the number of non-zero balance wallets and what it means for the future of Bitcoin.

What Caused the Increase in the Number of Non-Zero Balance Wallets?

After falling to about 43.8 million on or about February 23, 2023, the number of non-zero balance wallets began to increase rapidly. Analysts at Bitfinex, a widely-renowned cryptocurrency exchange platform, said that as new retail funds flooded into Bitcoin, wallets with less than 1 BTC led the purchase. This sudden growth can also be attributed to spot purchases by large and small investors and traders.

Evaluating Order Flow and On-Chain Data

Order flow, a critical aspect of trading, is the summary of buy and sell orders being executed on an exchange. The Bitfinex team used the data collected over a period of time to determine the source of recent major market moves. They evaluated the order flow and on-chain data by analyzing the transaction value, number of transactions, and the balance of the top holders on the Bitcoin network. Based on their analysis, they confirmed that price increases that exceeded the high range can be credited to spot purchases by large and small investors and traders.

Implications of the Increase in Non-Zero Balance Wallets

The addition of nearly 1 million new addresses to the Bitcoin network may not indicate an immediate increase in the value of Bitcoin, but it does show a growing amount of interest in the cryptocurrency. As more people become aware of cryptocurrencies and their potential as a store of value, it’s highly likely that the number of non-zero balance wallets on the Bitcoin network will continue to increase. This could lead to a snowball effect, causing a further rise in the value of Bitcoin. The more widely accepted it becomes and the more people start using and buying Bitcoin, the more its value appreciates.

Conclusion

Bitcoin has come a long way since its inception in 2009, and its rapid growth in recent times is a testament to the growing interest in cryptocurrencies. The addition of nearly 1 million new addresses in a short span illustrates the growing trust in Bitcoin’s underlying technology, a trend that is likely to continue in the foreseeable future. With more people buying, owning, and holding Bitcoin, we can expect its value to increase, making it a valuable asset and a store of value just like gold.

FAQ

Q. What is Bitcoin?

A. Bitcoin is a digital currency that can be used to buy goods and services or traded for other cryptos or even traditional currencies like dollars or euros.

Q. What is the underlying technology for Bitcoin?

A. Bitcoin’s underlying technology is known as blockchain; a distributed, decentralized ledger that records all transactions that take place on the network.

Q. Can the addition of new addresses lead to the rise in Bitcoin’s value?

A. While it may not indicate an immediate increase in the value of Bitcoin, the addition of new addresses on the network does show a growing amount of interest in the cryptocurrency. It is highly likely that the number of non-zero balance wallets on the Bitcoin network will continue to increase, causing a further rise in the value of Bitcoin.

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