Analysts at Santiment compared Bitcoin trading volume, the number of active addresses, and social-media discussions around Bitcoin over the past years. They concluded that, by these metrics, the market for the first cryptocurrency had recovered after a downward price trend over the past three years.
😮📊 Comparing the past decade of Bitcoin’s address activity, volume, and social discussion rate really puts into perspective how far we’ve come. The largest week of volume in 2020 ($60.2B) completely dwarfs the highest spike in the 2017 bull run ($22.1B) https://t.co/eo6QKEK4mc pic.twitter.com/D0Fk4cp1I5
— Santiment (@santimentfeed) November 12, 2020
Weekly trading volumes this year have been four times higher than the record $22 billion set from December 11–17, 2017. On those days Bitcoin’s price neared $20,000.
In the week of April 23–29 this year, weekly volume was almost three times higher — around $60 billion. The daily price jumped from $6,800 to $8,700, breaking out of a consolidation that had formed after the rout on March 12–13. In addition, the peak in 2017 volumes was also surpassed in the weeks of September 24–30 and January 9–15.
In terms of active addresses, 2020 essentially matched the 1.1 million marks seen at the start of January 2018 and in mid-December 2017. From July 23–29 and August 6–12 the figure exceeded 1 million.
Santiment does not have data for 2017 on social-media activity. Analysts note that this year’s peak discussions occurred in the week leading up to the third halving from May 7–13, and in the week of July 23–29, which was accompanied by a rise in on-chain activity.
Researchers believe that the figures give a broader view of the path Bitcoin has taken over the past decade since its appearance on the market. They are convinced that these figures confirm growing demand for the first cryptocurrency.
Earlier in the report, Kraken noted substantial grounds for Bitcoin’s rally toward a historic high, driven by the FOMO effect and the actions of so-called “whales”.
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