- Despite market stagnation, the adoption of Bitcoin has been steadily increasing recently. The number of new addresses created daily on the network has reached its highest level in three months.
- The increasing adoption of Bitcoin could be good news for struggling BTC miners dealing with declining profits and rising expenses.
- Following the enthusiasm around “BRC-20” in May, miner revenues followed a downward trend. Daily transaction counts significantly decreased.
The number of new addresses created daily on the Bitcoin network has reached a three-month high, and the increase in network revenues could deter miners from selling Bitcoin.
Steady Growth of the Bitcoin Network
Bitcoin reached impressive highs at the beginning of the year but has been hovering in the $30,000-$31,000 range for the past few weeks. The lack of volatility has disappointed both bullish and bearish forces in the market, and now everyone is waiting for a decisive move in either direction.
However, despite the stagnation, the adoption of Bitcoin has been steadily increasing recently. According to an update shared by Glassnode, the number of new addresses created daily on the network has reached its highest level in three months.
The graph shows a steady increase in the pace of new entrants into the Bitcoin market since early July. If the positive sentiment continues, there is a higher probability of surpassing the yearly highs of April.
The increasing adoption of Bitcoin could be good news for struggling BTC miners dealing with declining profits and rising expenses. More addresses can increase the likelihood of more transactions on the chain.
As known, miners heavily rely on network transactions to receive transaction fees and generate revenue, which is used to finance expensive hardware and electricity costs. Recently, the slow price movement of BTC and miners’ preference to hold coins have affected their economics.
Following the enthusiasm around “BRC-20” in May, miner revenues followed a downward trend, and daily transaction counts decreased significantly. Although there was some relief in transaction activity over the past weekend, the increasing hash rate presented challenges for miners again.
Amount of BTC Sent by Miners to Exchanges Is Increasing
While miners earn Bitcoin, they cover their costs with fiat currencies. Therefore, they follow positive market signals to generate profits.
As seen in the CryptoQuant chart, miners have been consistently moving their assets to exchanges over the past month. This indicates that miners could create selling pressure on Bitcoin. However, as depicted in the above charts, the increase in transactions and revenues could deter miners from selling BTC.
