With Bitcoin experiencing volatility swings in the first half of 2021, the asset’s number of new addresses remained significant between January and June this year.
According to data provided by Blockchain Centre, during the first half of 2021, a total of 488,206 new Bitcoin addresses on average were created daily. Cumulatively, during the first six months of the year, a total of 88,365,209 new addresses were generated.
January recorded the highest number of new addresses at 551,332, while June registered the least number at 370,269. Notably, the change in Bitcoin’s new addresses reflects the asset’s price movement during the period under review.
In January, Bitcoin’s rally was building up from last year’s price movement before the value began plunging towards the end of May. The price drop emerged amid increased regulatory crackdown and concerns about the asset’s environmental impact.
Although Bitcoin’s new addresses underwent a downward trajectory during the first half of 2021, activity on the network is likely to rebound alongside the number of unique addresses as the asset’s price continues to recover.
Potential factors influencing BTC new addresses
The unique addresses activity in January potentially points to an influx of new users as the fear of missing set in. Most specifically, the steady rise of unique addresses might result from accumulation by retail buyers who were projecting a near-term rally.
Notably, during the half, Bitcoin’s value plunged by almost 50% from the $64,800 record price established in April. The drop was also reflected in the number of new addresses generated.
At the same time, the high number of new unique addresses does not necessarily point to the entry of new investors into the Bitcoin network. In some cases, a single investor can account for several Bitcoin addresses. This scenario is aided by the fact that creating a Bitcoin address is very easy.
Elsewhere, the decline in Bitcoin’s number of new addresses played a role in the asset losing a key position to Ethereum. According to data provided by analytics firm, Santiment, on June 29, Ethereum surpassed Bitcoin in daily active addresses for the first time.