Almost a million newly created wallets were added to the Bitcoin network in a month.
According to the Data From on-chain analysis, Glassnode, 913,300 new wallets were added to the Bitcoin network between November and early December.
Almost 913,000 addresses were added from November 1 to December 1, 2021.
Was this just an outlier fueled by excitement after recently hitting an ATH? Was it the start of a broader trend?
TBD- As always, I will monitor this …
Data from @glassnode
– On-Chain College (@OnChainCollege) December 29, 2021
The number suggests the beginning of a broader adoption trend, but it’s not final. While the market, Bitcoin in particular, appears to be in a bearish zone, the Twitter tide explains a solid macro outlook for the premier coin. Data shows, the number of Bitcoin wallets with BTCs greater than zero rose from 30 million to almost 40 million in the period from June 2020 to December 2021.
Glassnode describes wallets with a positive value as non-zero wallets. If the number of non-zero wallets increases, this indicates that more crowds are entering the Bitcoin network, on the contrary, a decrease in the number shows that crowds are leaving the network. The main factor driving the trend is Bitcoin’s price action. Usually when bitcoin goes down people liquidate their investments while people start putting their money into the network when bitcoin goes up.
For example, from May to July this year, more investors emptied their wallets to zero as Bitcoin went down. So there is an obvious direct link.
Additionally, looking at the data, one should wonder whether new entries are just based on the excitement created by Bitcoin’s all-time high, or whether this actually indicates the beginning of a broader trend?
While the evidence is not as clear on either side of the spectrum, it would be safe to conclude that it would take a lot more data to conclude that this is, in fact, the start of a potentially broader trend.