CDS Crypto News Bitcoin Network Sees Decline in New Addresses Amid Waning Excitement Around New Projects

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Bitcoin Network Sees Decline in New Addresses Amid Waning Excitement Around New Projects

Zeynep Öztürk20/05/20241 Mins read337

Bitcoin Network Sees Decline in New Addresses Amid Waning Excitement Around New Projects

Six months ago, the buzz around spot Bitcoin ETFs, advancements in the Bitcoin ecosystem such as Ordinals, and the anticipation of the upcoming halving propelled the average weekly number of new Bitcoin addresses to levels nearing its peak in December 2017.

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However, much like the period following early 2018, the number of new addresses joining the network has plummeted as the excitement around new Bitcoin projects has waned. Data from The Block reveals that in the past week, an average of only 275,000 addresses were added to the Bitcoin network daily, a significant drop from 625,000 six months ago.

Additionally, other related metrics have declined. Notably, miner revenue, as measured by hash rate, has hit record lows. Transaction fees on the network have decreased, as have on-chain volume metrics.

Despite the current downturn in on-chain metrics, innovative protocols on the Bitcoin network are drawing unprecedented levels of interest from Venture Capital firms. As recently reported by The Block, this surge in investment could pave the way for a future resurgence.

FAQs

What is a Bitcoin address?

A Bitcoin address is a unique identifier, like an email address, that is used to send and receive Bitcoin (BTC). It’s a string of 26-35 alphanumeric characters, often starting with the numbers “1”, “3”, or “bc1”.

How does a Bitcoin address work?

Think of a Bitcoin address like a mailbox. If you want someone to send you a letter, you give them your mailing address. Similarly, to receive Bitcoin, you give the sender your Bitcoin address.

Technically, a Bitcoin address is a hashed version of your public key, which is part of a cryptographic key pair (public and private keys). When someone sends BTC to your address, they are essentially locking it with your public key. You can then unlock those funds using your corresponding private key.

How do I get a Bitcoin address?

You get a Bitcoin address by creating a Bitcoin wallet. Wallets come in various forms:

Software wallets: These are apps that you download to your computer or smartphone.

Hardware wallets: These are physical devices specifically designed for storing cryptocurrency.

Web wallets: These are online services that let you access your Bitcoin from any internet-connected device.

Paper wallets: These are physical printouts of your public and private keys.
Each wallet will generate one or more Bitcoin addresses for you to use.

Bitcoin network

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Zeynep Öztürk

.Zeynep Öztürk, born in 1994 in Mardin, is a journalist, writer, and SEO expert. She specializes in digital media and content strategies. With experience in news writing and SEO optimization, she creates content that reaches a wide audience.