The Bitcoin network has seen a significant spike in activity due to an increase in on-chain transaction volume and the recirculation of dormant Bitcoins.
This development, highlighted by recent data from Santiment, suggests a change in the behavior of long-term holders. According to the market intelligence platform, stagnant Bitcoin movements have historically signaled future price increases.
As more dormant Bitcoins return to circulation, the market is anticipating potential upward momentum for the cryptocurrency.
Bitcoin on-chain transaction volume reaches first time in 7 months
The graph shared by Santiment focuses on two key metrics: on-chain transaction volume and “duration of consumption,” which measures how much dormant Bitcoin is being moved. Bitcoin on-chain transaction volume surged significantly on Tuesday, totaling $37.4 billion, the highest daily trading volume since March 12, 2024.
consumption age metrics
A key element in the network’s recent activity is its “age of consumption” metric. This indicator tracks old Bitcoins that have remained inactive for a long time but are now being moved. On Tuesday, the indicator showed a dramatic increase, showing that a significant portion of the $37.4 billion in trading volume came from previously inactive BTC transfers.
Santiment data shows a whale trade pulling 250 BTC worth $15.7 million from Binance. This transaction contributes to a surge in overall on-chain trading volume, as the whale previously stashed 10,158 BTC tokens at an average cost of $67,000 in March and April 2024.
Increased adoption reflected in new address
In addition to the surge in on-chain volume, IntoTheBlock’s data shows a notable increase in new Bitcoin addresses. New addresses increased by 11.54% in the past week, with 325,87,000 new addresses recorded in the week ending October 7, 2024.
Bitcoin Address Statistics IntoTheBlock
This rise reflects growing interest in Bitcoin and suggests a potential expansion of its user base. Historically, spikes in new addresses have correlated with increases in Bitcoin prices, as seen during the major bull markets of 2017 and 2020-2021.
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