This Metric Confirms Interest In Bitcoin And Ethereum Is Picking Up

By
JP Buntinx
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Both bitcoin and ethereum remain at relatively low prices compared to a few months ago. Bitcoin has yet to reclaim the $45,000 level, and Ether seems stuck below $3,000 at this time. Those low prices entice more people to acquire both assets, as the number of non-zero addresses continues to rise. 

Ethereum Non-zero Addresses ATH

When more addresses are holding a balance of a particular cryptocurrency than ever before, it can mean one of two things. Either newcomers buy the asset and fund their wallets, or existing users spread their existing funds across more addresses. That latter option can be helpful when collecting airdrops or using multiple accounts on NFT marketplaces or DeFi protocols. Unfortunately, it is impossible to determine which of the two is true, although Ethereum’s high network fees make spreading funds across multiple wallets an expensive idea.

Interestingly, the Ethereum network notes an all-time high of non-zero addresses suddenly. The new all-time high sits at over 75.028 million, which is spectacular. More importantly, the metric shows a substantial increase after a brief plateau in early 2021. Continuing the uptrend is a positive sign for the network, although no one knows how many new users are funding these addresses. 

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Interestingly, the number of non-zero addresses for Ethereum has nearly doubled compared to late 2019/early 2020. There are more smart contracts, DeFi protocols, and NFT solutions than ever before. All of those projects will contribute to this metric in their own way. However, the current growth remains rather interesting. It confirms Ethereum may surpass 100 million non-zero addresses in the next 12-18 months. 

Under the current price conditions, Ether remains an appealing buy. One can argue spending almost $2,900 on a crypto asset remains expensive. However, it is still more affordable than bitcoin, especially for those who want to accumulate some crypto assets without breaking the bank. However, both currencies can be acquired in minimal units, even though some people assume buying a full ETH or BTC is necessary. 

Bitcoin Notes A Bounce

The non-zero addresses for Bitcoin are not close to an all-time high yet. However, it would only take roughly 300,000 more addresses to hit a new peak. So it is intriguing to see this metric for BTC non-zero addresses surpass 40 million again. There was a steep drop-off after the recent market dip in the past few weeks, but the momentum is reversing steadily. Moreover, more people seek active exposure to cryptocurrencies than ever before. That trend will not slow down due to a market dip.

Similar to Ethereum’s statistics, it is difficult to determine why Bitcoin has more non-zero addresses. Growth is beneficial, though, and the details may not matter all that much. Even if this metric dips below 40 million again for BTC, it will not matter too much. The current level is still higher than the period until mid-2021 and everything that came before it. Cryptocurrencies are here to stay; that much is clear. 


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