The Bitcoin (BTC) network has doubled its monthly active addresses (MAA) over the past five years. According to data presented by tradingplatforms.com, BTC increased its MAA by 92% over time. From 15.47 million in January 2017, it closed at 29.68 million MAA in December 2021.
Edith Reads of Tradingplatforms.com shared her thoughts on the news. She says, “Monthly active addresses are a critical metric for any crypto project. This is because it can be the window to the overall health of the crypto. Active addresses are pointers to people interacting with the asset. In this case, the doubling of the BTC MAA indicates increasing confidence in the currency. “
Increase in monthly active addresses
The data show that MAAs peak at specific intervals. For example, there was a spike in December 2017, when addresses approached the 34 million mark. Again, there are further peaks in January and March 2021. In these cases, addresses had reached around 36 million and 35 million, respectively.
This December 2017 peak coincided with the coin’s uptrend. Since the January 2017 low of $ 1,100, bitcoins had registered a twenty-fold increase on December 16, 2017. Then it traded at around $ 20,000. Again, the surge came a year after the crypto halved.
The growth of the MAA in 2017 could be linked to increased public awareness of crypto. Bitcoin then became the first in mainstream media coverage. Therefore, there has been an influx of new Bitcoin retailers to the market, possibly due to FOMO.
Hedge against inflation
On the other hand, the surges of January and March 2021 are due to a different factor. Rising inflation rates globally in the wake of the COVID -19 pandemic has led people to seek alternatives for coverage. And bitcoin has provided that opportunity. Hence, many hold currency as digital gold and the perfect hedge against inflation.
In addition, the period saw an influx of institutional investors. For example, pension plans, endowments and investment funds.
Unlike the bull run of 2017, that of 2021 has attracted the interest of renowned investors. These included Paul Tudor, the billionaire hedge fund guru. Even longtime skeptics like JP Morgan read the digital assets value. Their actions helped build confidence in the crypto king.
These investments from institutional investors say a lot about the integration of Bitcoin. Some of the major payment companies now accept cash payments. Again, there is an increase in the number of institutions and outlets supporting payments in the asset.
Through Edith reads