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Bitcoin network’s activity rises as active addresses hold above 1 million for the 5th day

Bitcoin network's activity rises as active addresses hold above 1 million for the 5th day
Jordan
Major
7 months ago
2 mins read

Bitcoin’s (BTC) daily active address count has historically been a reliable indicator of the digital asset’s prospected price movement, with the price of BTC traditionally rising due to an increase in the total number of addresses interacting on the network.

Interestingly, for the fifth day in a row this week, the number of active Bitcoin addresses on the network has exceeded one million, according to Blockchain analytics firm Santiment. Indeed, the on-chain analytics platform commonly used by crypto traders usually for historical balances, and emerging trends stated:

“Bitcoin has had 5 straight days (excluding historically slow weekends) of over 1M active addresses interacting on the BTC network. This rise is an encouraging sign that another all-time high can inevitably be tested.” 

Bitcoin amount of addresses 5 straight days over 1M. Source: Santiment

Lightning Network continues to grow

Furthermore, the extension of the Bitcoin network has resulted in additional leading indicators of the overall performance, such as the Lightning Network, which has shown consistent growth in recent days. It is expected that more than 9.2k nodes will be added to the network in the first ten months of 2021, according to the latest available data from the on-chain analysis platform.

Co-Founders of Glassnode, Yann and Jan, noted:

“The Bitcoin (BTC) Lightning Network keeps on growing. Around 9.2k new nodes have been added to the network in 2021 alone. This is a 111% growth rate in operating hardware YTD. The network currently has 11,464 LN nodes online.” 

Bitcoin: Lightning network number of nodes. Source: Glassnode

The Lightning Network is built on top of the Bitcoin foundation layer; it is a Layer 2 scaling solution that allows a channel to be formed between two peers to postpone final settlement until a later time.

Bitcoin price

After reaching an all-time high of $66,800 on October 20, Bitcoin’s price has remained above the $60,000 mark for the most part, with brief dips below. The cryptocurrency is presently trading over $61,747, down 2.25% on the day and up 0.96% in the last week, according to CoinMarketCap statistics.

Bitcoin seven day price chart. Source: CoinMarketCap.com

In line with the latest spike in general Bitcoin network activity, BTC appears to be gaining bullish momentum. Many leading crypto trading analysts believe that Bitcoin is on course to break a new all-time high this month and hit $100,000.

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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