• Bitcoin Active Addresses haven’t grown much recently, suggesting a lack of demand for the asset.
• This is measured by the “active addresses” metric which counts unique addresses that participate in some transaction activity on the chain.
• Recent rallies have seen an increase in active addresses, but not to the same levels as previous cycles.
Bitcoin Demand Slower Than Previous Cycles
On-chain data shows demand for Bitcoin has been returning recently, but the rise has been slower than what previous cycles saw at a similar stage.
Measuring Bitcoin Activity with Active Addresses
As pointed out by an analyst in a CryptoQuant post, the market activity rapidly changed after the bottom formed during the previous cycles. The relevant indicator here is the “active addresses,” which measures the daily total amount of Bitcoin addresses that are participating in some transaction activity on the chain. The metric only measures unique addresses, meaning that if an address takes part in multiple transfers in a single day, it’s still counted only once. It also accounts for both senders and receivers when measuring this activity.
High Values Show Market Interest
When the value of this metric is high, it suggests a large number of users are making transactions on the network right now – indicating higher levels of market interest and demand for Bitcoin. On the other hand, low values imply not many people are engaging with trading on blockchain currently – suggesting weaker market demand for Bitcoin at present.
Recent Trends Show Low Demand
The chart below shows how active address values have changed over recent years:
Looks like the value of this metric hasn’t moved much recently | Source: CryptoQuant
As shown above, active address values had sunk to relatively low levels during bear markets – likely due its lack of volatility or potential profits from trading at those times – yet recently there has been some improvement recorded against these figures with price rallies showing increases here too. However, these rises still haven’t reached anywhere near their earlier peak levels as seen previously in past cycles.
Overall trends suggest current demand for Bitcoin is lower than what was seen previously at similar stages within crypto cycles – however it may be too soon to draw any definite conclusions given recent movements have only just begun to pick up again following bear markets lows seen not so long ago.
• The SEC has charged Terraform Labs and its co-founder Do Kwon with multi-billion dollar crypto asset securities fraud.
• Mirror, the decentralized platform built on Terra, allowed users to trade mirror assets of actual securities.
• Anchor, Terraform’s flagship product, touted a clean and straightforward UI and a consistent 20% interest rate on UST stablecoin.
Terraform Labs Charged With Crypto Fraud
The Securities and Exchange Commission (SEC) has charged Terraform Labs and its co-founder Do Kwon with orchestrating a multi-billion dollar crypto asset securities fraud through their algorithmic UST stablecoin and surrounding securities.
Mirror: Trading Mirrored Assets of Actual Securities
Mirror was the decentralized platform that was built on Terra which allowed users to trade mirrored assets of actual securities. At one point in the early days of Mirror, some users were ‘looping’ assets with leverage based on existing securities traded on federal exchanges. The press release calls out Mirror’s MIR token, the UST stablecoin, and Luna’s native LUNA token directly.
Anchor: Bread & Butter Of Ecosystem
Anchor was the bread and butter of the ecosystem that touts a clean and straightforward UI as well as a consistent 20% interest rate on UST stablecoin at its peak – when it was home to several billions of dollars in liquidity. The SEC complaint alleges that Kwon and Terraform Labs “misled and deceived investors” around topics such as the stability of UST.
Gensler Cracking Down On Crypto Frauds
Former CFTC chairman Gary Gensler is now leading up SEC’s enforcement team against any sort of crypto frauds or scams in order to protect investors from any potential harm or manipulation in this space.
The downfall of Terra brought upon much scrutiny by regulators – especially due to its size – but also due to its use case being so widely adopted amongst defi users prior to its collapse in 2022. It remains unknown whether Kwon will be able to make an argument for his innocence, but regardless, this is yet another reminder for traders that these markets are still subject to regulatory oversight even if they are decentralized or operate within blockchain technology networks
• Bitcoin network activity is at its highest level since May 2021 due to the popularity of Ordinals NFTs.
• CryptoQuant’s Network Activity Index evaluates the activity of the Bitcoin network on four metrics: number of active addresses, number of transactions, Unspent Transaction Output (UTXO) count and block size.
• The surge in network activity is due to the growing popularity of Non-Fungible Tokens (NFTs) which occur through Taproot transactions, leading to an increased average block size.
Bitcoin Network Activity at All-Time High
On-chain data shows that Bitcoin network activity is now at its highest level since May 2021 as Ordinals NFTs have been rapidly gaining popularity.
CryptoQuant’s Network Activity Index
CryptoQuant’s “network activity index” evaluates the activity of the Bitcoin network using four metrics: total number of active addresses on the network, number of transactions, Unspent Transaction Output (UTXO) count and block size. The graph below displays how this value has changed over time:
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Growth Due to Non-Fungible Tokens (NFTs)
The reason behind this boost in activity is that BTC non-fungible tokens (NFTs) have been quickly becoming popular. These NFTs have become possible on the BTC blockchain thanks to a system called the “Ordinals.” This protocol directly stores images on the chain using Taproot transactions. As these NFTs are directly “inscribed” on the blockchain itself,the average block size gets inflated when these are added to transactions; thus resulting in a rise in CryptoQuant’s Network Activity Index.
In conclusion, as more and more people adopt Non Fungible Tokens as a form of investment or display item with unique characteristics such as rarity and scarcity, it is evident that there will be increasing demand for blockchain space; causing Bitcoin’s network activity index to reach all-time highs not seen since May 2021!
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• John E. Deaton scored a major win for the crypto industry, the XRP community and Ripple yesterday in the remedies hearing of the LBRY vs SEC case.
• The SEC declared that they do not consider secondary sales of LBC tokens as securities, while the judge confirmed he would clarify that in the final remedy.
• Following this news, LBC token prices rose up to 155%, showing what could happen to XRP if Ripple wins its case against SEC.
John E. Deaton’s Win for Crypto Industry
Attorney John E. Deaton scored a massively significant victory for the entire crypto industry, the XRP community as well as Ripple yesterday by appearing as an amicus in the remedies hearing between LBRY and U.S Securities and Exchange Commission (SEC).
SEC Declares No Secondary Sales are Securities
The SEC declared “live and on tape” that it does not consider secondary sales of the LBC token as securities. In addition, New Hampshire District Court judge confirmed that he would clarify in the final remedy that he does not rule on the secondary market.
Positive Impact on Token Prices
This meant massively good news for LBC token holders, since previous ruling would have jeopardized its existence independent of LBRY company. As a result of this news, prices rose up to 155%. At press time, price stood $0.024913 with a spike of 120%.
Potential Impact on XRP Price
The rise in LBC token price following yesterday’s partial victory by LBRY against SEC may be a foreshadowing of what will happen to XRP price if Ripple wins its case against SEC and there is regulatory clarity around it. When lawsuit was filed by SEC against Ripple in December 2020, XRP price plummeted -72% from $0.60 to $0.17 due to high risk associated with it – further showing relative weakness against other cryptocurrencies such BTC & ETH compared to their all-time highs (-88%).
A potential win by Ripple could trigger euphoria among investors resulting them increasing their XRP holdings which can lead to significant increase in price as seen with LBC after winning partially against SEC – according Bill Morgan (XRP Community lawyer).