Bitcoin network sees decline in new addresses to four-year low

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20th May 2024 – (New York) The Bitcoin network, which experienced a surge in activity six months ago, has witnessed a significant downturn in the number of new addresses being created, reaching a low not seen since 2018. This reduction follows a period of heightened enthusiasm driven by developments such as potential spot Bitcoin ETFs, the introduction of Ordinals, and anticipation of the upcoming Bitcoin halving.

During the peak of this activity, the seven-day moving average for new Bitcoin addresses neared the record highs set in December 2017, with figures approaching 625,000 new addresses daily. However, recent data indicates a stark decline, with the average falling to just 275,000 new addresses per day over the past week.

This downturn mirrors the post-2017 scenario, where interest waned following a boom period. Additionally, there has been a notable decrease in other critical network metrics. Miner revenue has dipped to record lows, reflecting a lower hash rate, and transaction fees have also decreased alongside on-chain volume metrics.

Despite these setbacks, there is a silver lining. Recent reports suggest that venture capital interest in new Bitcoin protocols is at an all-time high, hinting at potential future revitalisation of network activity. This investment could signal the beginning of a recovery phase for the Bitcoin ecosystem as it continues to evolve.