Bitcoin active addresses doubled in 2020

The number of active Bitcoin addresses has surged more than 105% this year, according to Coin Metrics.

The number of active Bitcoin addresses has doubled this year to 1.2 million, the crypto data site said in its latest “State of the Network” report released today.

The total market value of BTC has increased by more than $300 billion during 2020. The number of daily active addresses has doubled, and the number of addresses holding at least 0.01 BTC has increased by more than 700,000.

— Nate Maddrey (@natemaddrey) December 22, 2020

Why is this so important? This shows that the market is healthy, the healthiest it has been since 2017. Active addresses mean more people are using the cryptocurrency, or at least buying it.

Coin Metrics attributes Bitcoin’s success this year to the massive influx of institutional investors into the market, with Square, MicroStrategy and PayPal all entering this world.

The number of active Bitcoin addresses has surged

“Bitcoin’s price began to rise soon after the emergence of institutional investors,” the report said. “In a rapidly changing world, more and more people recognize Bitcoin as a hedge against inflation and a form of digital gold.”

Coin Metrics also noted that Bitcoin’s market capitalization has increased by more than $300 billion this year, and the number of addresses holding at least 0.01 BTC has grown by more than 700,000.

The website added that the largest cryptocurrency by market capitalization will continue to grow next year.

“In many ways, Bitcoin is at its strongest point yet 2020 is only just coming to an end. As momentum continues to build, Bitcoin is on track to reach unprecedented heights in 2021,” the report said.