In the past six weeks, the number of active addresses on the Bitcoin network has dropped from 1.3 million to approximately 500,000, a drop of approximately 60%.
The collapse of the activity caused the number of active addresses in Ethereum to exceed that of Bitcoin. On July 27, the number of active wallets hosted on the Ethereum network was about 200,000 more than Bitcoin.
This is the third time this month, Ethereum also surpassed Bitcoin by indicators on June 5, 2021 and June 6, 2021. The last time ETH took the lead was in early 2017.
Twitter analyst Mr. Whale (known for his pessimistic views) also pointed out that according to the weekly moving average, Bitcoin’s active addresses have fallen to the lowest level since April 2020.
Bitcoin’s active address on the blockchain network has just dropped to its lowest level since April 2020.
This data is bearish. This shows that the demand for Bitcoin is rapidly drying up. pic.twitter.com/vdmwagbvtm
-Mr. Whale (@CryptoWhale) July 1, 2021
There are several factors that may cause a significant drop in active Bitcoin addresses, including a more than 50% sell-off after Bitcoin hit a record high in May and subsequent horizontal market movements, as well as the network hash rate in the latest news from China. Mass collapse. Cracking down on local Bitcoin mining operations.
Although the price of ETH has fallen by more than 10%, the number of active addresses in Ethereum has increased by more than 9% in the past week, reaching 700,000. However, active Ethereum addresses are still down 22% from the peak of 900,000 in early April.
Flip the watch
Active address is the latest indicator of Ethereum surpassing Bitcoin, the blockchain center’s Flip index It is estimated that Ethereum’s transaction fee income leads by more than 300%, while the total transaction volume leads by nearly 500%.
However, after falling behind Ethereum recently, Bitcoin has also regained its lead in terms of transaction volume and transaction volume.
According to June 23 report From the on-chain analytics provider Glassnode, the total number of unique Address and DeFi protocol interaction It has been climbing since May, which shows that despite the broader trend of cryptocurrency, DeFi activity is still on the rise.
This data It shows that since the beginning of May, the number of wallets interacting with the DeFi protocol has increased by nearly 40%, and the total number of users has exceeded 2.9 million. Therefore, the continued demand for DeFi by new users can explain the recent advantages of Ethereum over Bitcoin in network activities.