As bitcoin continues to set new price highs, its network is also seeing recordbreaking user activity. As of Tuesday, there were 432,451 active entities wallet clusters controlled by a single participant that sent or received funds in a 24hour period. Thats an alltime high, according to data provided by blockchain analytics firm Glassnode. The previous peak of 410,972 was registered on Dec. 9, 2017.
The number of active entities has been increasing steadily since the halving and signifies a large increase in network adoption by participants, said Matthew Dibb, cofounder of Stack, a provider of cryptocurrency trackers and index funds.
Bitcoin underwent its third mining reward halving on May 11 of this year. Since then, the number of active entities has increased by 70 and bitcoins price has more than doubled to nearly 20,000.
The cryptocurrency printed a record high of 19,920,53 on Tuesday before falling back. Bitcoin was trading around 19,130 at time of writing, representing a 1.7 gain on the day.
While bitcoins price gains have been relatively sharp over the past eight weeks, the number of active entities has charted relatively steady growth. While the metric has breached highs not seen since 2017, it has done so gradually without bubblelike growth, Dibb told CoinDesk. We take comfort in this when correlating address clusters with forwardlooking price action.
Analysts consider increased activity as a bullish sign. When theres greater usage, theres more demand for…