Key Points
- The number of new Bitcoin wallets has dropped to its lowest level since 2018.
- Despite the decrease, novel Bitcoin protocols are attracting significant interest from Venture Capital firms.
The excitement surrounding spot Bitcoin ETFs, advancements in the Bitcoin ecosystem, and the impending halving drove the average weekly number of new Bitcoin addresses to near-record levels six months ago.
However, similar to the situation in early 2018, the number of new addresses joining the network has significantly decreased as the enthusiasm for new Bitcoin projects has waned.
Data Indicating Decrease
Recent data reveals that only an average of 275,000 addresses were added to the Bitcoin network each day in the past week, a stark contrast to the 625,000 new addresses added daily six months ago.
Other related indicators, including miner revenue as determined by hash rate, have also hit record lows. Transaction fees on the network, as well as on-chain volume metrics, have also seen a decline.
Potential Comeback
Despite the current decline in on-chain metrics, new protocols on the Bitcoin network are drawing extraordinary interest from Venture Capital firms. This could potentially set the stage for a resurgence in the future.
