On-chain data shows Bitcoin adoption has picked back up again recently, something that could be bullish for the cryptocurrency’s price.
Bitcoin Total Amount Of Holders Is Closing In On All-Time High
According to data from the on-chain analytics firm Santiment, the Total Amount of Holders has been rising for Bitcoin recently. The “Total Amount of Holders” refers to an indicator that, as its name already suggests, measures the number of BTC wallets carrying a non-zero balance.
When the value of this metric rises, it can be due to several reasons. New investors joining the network and old ones who had sold earlier reinvesting into the asset can both result in an uptick for the indicator. Existing users creating multiple wallets to manage their holdings or for privacy purposes can also add to the trend.
In general, it tends to be a safe assumption that all three of these would occur at once whenever the Total Amount of Holders increases. Thus, some net adoption can be considered to be occurring.
On the other hand, the indicator going down implies some investors have decided to clear out their wallets, potentially because they have decided to exit from the cryptocurrency.
Here is the chart shared by Santiment, which shows the trend in the Total Amount of Holders for the four top cryptocurrencies: Bitcoin, Ethereum, XRP and USDT.
The value of the metric appears to have been on the rise for all of these coins in recent days | Source: Santiment on X
As the above graph shows, Ethereum, XRP, and USDT have been witnessing growth in their Total Amount of Holders for a while now, which means the assets have been enjoying adoption.
Conversely, Bitcoin has seen chiefly consolidation in the metric during the last few months. In January, the metric set a new all-time high (ATH) of 54.72 million. Still, the metric saw a plunge shortly after, indicating that the bearish price action forced some investors to sell.
Interestingly, even though the asset’s volatility has continued during the last few weeks, the indicator has shown a turnaround, with its value again moving to set a new record.
As the analytics firm notes,
This is partially due to BTC network growth, and larger wallets splitting into smaller ones. But this does indicate continued expansion of crypto’s top network, despite the nearly 8 weeks of extreme price volatility since Bitcoin’s $109K price all-time high.
At present, the Total Amount of Holders is sitting at 54.71 million for Bitcoin, only down 0.018% as compared to the January ATH.
BTC Price
Despite the positive adoption that has been occurring, Bitcoin has been unable to keep any recovery runs going, as its price is still trading around $81,200.
Looks like the price of the coin has been consolidating over the last few days | Source: BTCUSDT on TradingView
Featured image from Dall-E, Santiment.net, chart from TradingView.com
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