Active Address Growth Trend

Active Address Growth Trend

This is part of the Onchain Uncovered series of charts which applies further insight to existing onchain data available elsewhere on the site. Onchain Uncovered charts are for subscribers only.

Active addresses are an important characteristic of Bitcoin adoption as they demonstrate that the network is being used at scale. They can also help to identify whether Bitcoin is in a major bullish or bearish trend.

Low time frame data for active addresses is noisy due to fluctuations in active address usage.

However, when we zoom out and look at moving averages of the data, they can highlight periods where active addresses are in growth, and when their overall trend is in decline.

In this example we use the circle one-year moving average and compare it to the circle 60-day moving average.

• 60-day > Yearly = Growth in active addresses, a typically healthy sign of bull markets.
• 60-day < Yearly = Decline in active addresses, typically a signal that market conditions are bearish and network usage is contracting.

It is also possible to turn on the 14-day moving average and 30-day moving average by selecting the labels in the chart legend.