With the help of institutional funds, the number of active Bitcoin addresses has doubled this year

According to Decrypt on December 23, data from Coin Metrics shows that the number of active Bitcoin addresses has soared by more than 105% this year.

In its latest “State of the Network” report released today, the cryptocurrency data site said the number of active bitcoin addresses has doubled this year to 1.2 million.

On December 10, another institutional move to adopt Bitcoin came when insurance company MassMutual announced a $100 million acquisition of BTC. Less than a week later, on December 16, the price of Bitcoin surged above $20,000, three years after reaching a peak of $19,640 in 2017.

During 2020, Bitcoin’s market capitalization increased by more than $300 billion. The number of daily active addresses doubled, and the number of addresses holding at least 0.01 Bitcoin increased by more than 700,000.

Why is this data so important? Because it is evidence that the market is doing well. This data is the best it has been since 2017. More active addresses means more people are using the cryptocurrency, or at least buying it.

Coin Metric attributes Bitcoin's success this year to institutional investors pouring into the market, with Square, MicroStrategy and PayPal all investing in Bitcoin.

The report shows:

Soon after institutional investors invested in Bitcoin, the price of the digital currency began to rise. In a rapidly changing world, Bitcoin is increasingly being considered as a hedge against inflation and a form of digital gold.

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

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

The report states:

As we approach the end of the year, Bitcoin is in many ways at its strongest point yet. As Bitcoin momentum continues to build, it is on the verge of reaching unprecedented highs in 2021.

This article was translated with permission from Decrypt.com

Original article: https://decrypt.co/52403/bitcoin-active-addresses-doubles-in-2020-coin-metrics

By Mathew Di Salvo

Compiled by Captain Hiro

Source (translation): Babbitt Information (http://www.8btc.com/)