Bitcoin’s active addresses fall below Ethereum's following 60% drop in six weeks
The number of active addresses on Bitcoin network has crashed nearly 60% over the past six weeks, going down from 1.3 million to roughly 500,000.
Ethereum overtook Bitcoin by a number of active addresses, with the second-largest blockchain network hosting approximately 200,000 more active wallets than Bitcoin on July 27.
However, it is not for the first time, as Ethereum also has overtaken Bitcoin by the metric June 5, 2021, and June 6, 2021.
There are several factors contributing to the aggressive drop in active Bitcoin addresses, including over 50% sell-off that followed Bitcoin’s all-time highs in May and subsequent sideways market action, and the massive crash in network hash rate following China’s latest crackdown.
Ethereum’s active addresses have increased by more than 9% over the past week to tag 700,000, despite Ether falling down more than 10%. However, active Ethereum addresses are still down 22% from their early April peak of 900,000.
The number of active addresses is the latest metric Ethereum has overtaken Bitcoin by, with Blockchain Center’s Flippening Index estimating Ethereum’s transaction fee revenue leads by more than 300%, while total transaction count is ahead by nearly 500%.
According to a report from Glassnode, the total number of unique addresses interacting with DeFi protocols has continued to surge since May, suggesting DeFi activity was rising despite the broader crypto meta-trend.