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Bitcoin on Track to Close Year High as Number of Active Addresses Doubles in 2020

UTC by Benjamin Godfrey · 3 min read
Bitcoin on Track to Close Year High as Number of Active Addresses Doubles in 2020
Photo: Depositphotos

Coin Metrics noted that the number of active Bitcoin addresses with at least 0.01 BTC did not just grow by more than 700,000 this year, it also showed a chart that the number of active addresses has topped 1.1 million.

Bitcoin according to Coin Metrics is on track to close the year on a bullish note as the coin has experienced massive growth as evidenced by the surge in the number of its active addresses. Bitcoin is almost turning into a household name as the first-ever digital currency ranks as one of the most talked-about investment assets of the year.

With the year marked by increased demand for an alternative to the existing payment networks, Bitcoin as well as most altcoins found their use cases surge. In the latest issue of the Coin Metrics’ State of the Network, the crypto data analytics platform revealed the quantum growth Bitcoin witnessed in 2020 marked with an increase in the number of active bitcoin wallet addresses.

“Over the course of 2020 bitcoin added over $300B to its market cap. The amount of daily active addresses doubled, and the number of addresses holding at least 0.01 BTC grew by over 700k. While adoption grew, bitcoin veterans continued to hold strong. Bitcoin’s velocity dropped by close to 10% on the year, and the amount of supply active within the last 2 years decreased by about 11%,” Coin Metrics said in the release.

It added further that Bitcoin “is in its strongest position yet closing out 2020. As momentum continues to build, bitcoin is on the verge of reaching unprecedented heights in 2021.”

Here’s Coin Metrics Reasons for Bitcoin Addresses Growth

Coin Metrics noted that the number of active Bitcoin addresses with at least 0.01 BTC did not just grow by more than 700,000 this year, it showed a chart that the number of active addresses has topped the 1.1 million thresholds.

According to Coin Metrics, the massive entry of institutional investors such as Square Inc (NYSE: SQ), MicroStrategy Incorporated (NASDAQ: MSTR), and PayPal Holdings Inc (NASDAQ: PYPL) into space has stirred a massive acceptance that contributed to more retail adoption and investment in Bitcoin.

Besides these, Billionaire investor Paul Tudor Jones revealed back in May that about 2% of his networth is domiciled in Bitcoin following his perception that the digital currency can be a worthy hedge against the impending inflation at the time. He explained that he viewed it as a hedge against inflation, saying “we are witnessing the Great Monetary Inflation – an unprecedented expansion of every form of money, unlike anything the developed world has ever seen.”

While the embrace from the institutional players was spiked by factors including the inflation hedge, the coming year 2021 may even see more of these factors favor the growth and adoption of Bitcoin especially with the passage of the new $900 billion COVID-19 stimulus package, the latest advertisement Bitcoin has been waiting for according to Tyler Winklevoss, the Gemini exchange’s CEO.

Bitcoin News, Blockchain News, Cryptocurrency news, News
Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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