Recent on-chain data indicates a resurgence in Bitcoin adoption, which could positively influence the cryptocurrency’s price.
Bitcoin’s Total Number of Holders Approaches All-Time High
Data from on-chain analytics company Santiment reveals that the Total Number of Holders for Bitcoin has been increasing lately. This metric reflects the count of BTC wallets that hold a non-zero balance.
An increase in this metric can stem from several factors. It could be the result of new investors entering the network or previous sellers reinvesting in the asset. Additionally, existing holders might be creating multiple wallets for better management or privacy, contributing to the uptick.
Generally, it is reasonable to assume that all three scenarios are happening simultaneously when the Total Amount of Holders rises, suggesting a degree of net adoption.
Conversely, a decline in this metric suggests that some investors may be liquidating their wallets, possibly signaling a decision to exit the cryptocurrency space.
Below is the chart provided by Santiment, illustrating the trend in the Total Amount of Holders across the four leading cryptocurrencies: Bitcoin, Ethereum, XRP, and USDT.
The metric appears to have been rising across all these coins in recent days | Source: Santiment on X
As depicted in the graph, Ethereum, XRP, and USDT have been enjoying a steady increase in their Total Amount of Holders, indicating ongoing adoption.
In contrast, Bitcoin has primarily experienced consolidation in this metric over the last few months. In January, the metric reached a new all-time high (ATH) of 54.72 million, but subsequently saw a drop as bearish price action forced some investors to sell.
Interestingly, despite the asset’s ongoing volatility in recent weeks, there has been a turnaround in the indicator, with its value trending toward a new record high.
As noted by the analytics firm,
This growth is partly attributed to advancements within the BTC network, along with larger wallets being divided into smaller ones. It reflects the continued expansion of crypto’s leading network, despite approximately eight weeks of significant price volatility since Bitcoin’s all-time high of $109K.
Currently, the Total Amount of Holders for Bitcoin stands at 54.71 million, representing a decrease of just 0.018% compared to the January ATH.
BTC Price
Despite the encouraging adoption trends, Bitcoin has struggled to maintain recovery momentum, with its price hovering around $81,200.
The coin's price appears to have been consolidating in recent days | Source: BTCUSDT on TradingView
Featured image from Dall-E, Santiment.net, chart from TradingView.com
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