Data by crypto-financial data provider, CoinMetrics, shows that Bitcoin user adoption is increasing as the price of the cryptocurrency rises. As economies feel the effects of the coronavirus, the rush for safe-haven assets continues.
A record-high 16 million Bitcoin addresses were recorded as holding at least $10 worth of cryptocurrency. This presents an increase of 14% from the previous record in January 2018 when Bitcoin’s price was at an all-time high of $20,000. A rise in the number of addresses with small balances has also been recorded.
According to network data product manager at crypto data provider Coin Metrics,
“We just hit an all time high in the number of addresses holding more than $10 worth of $BTC (16.6M) and $ETH (6M). Millions of addresses more than what was seen at the top of the 2017 bubble.”
While the growth in the number of addresses is not always a sure sign of an increase in the user base, it indicates positive sentiments about the cryptocurrency.
The adoption of Bitcoin has risen by 27% in the 4.5 months since the crash in its price in March. During the period, prices rallied 200%. The apex cryptocurrency already surged 5% on Wednesday, outpacing stocks and gold.
According to the crypto-research firm, Arcane Digital,
“The strong momentum in the market continues…the sharp rise in open interest at CME is a clear indication of increased institutional demand for bitcoin.”
Earlier in the year, Billionaire and Bitcoin proponent, Tim Draper asserted that Bitcoin (not banks or governments) will be the solution once the world bounces back from the coronavirus period.
Over the years, a noticeable number of South American nations have shown greater reliance on cryptocurrencies. In more recent times, nations of other continents have come to rely more on cryptocurrencies such as Bitcoin as their fiat currencies fall in value.