Resilience in Turmoil: One Million Wallets Now Hold a Whole Bitcoin
Despite prevailing market turbulence, the enduring appeal of Bitcoin remains indisputable. As per the latest data from on-chain analytics tool, Glassnode, Bitcoin wallets holding at least one full BTC crossed the historic one million mark earlier this week. This milestone showcases the unwavering long-term sentiment for Bitcoin even amidst fluctuating market conditions.
This surge is especially noteworthy, marking a 20% jump since February last year. A significant contribution to this growth occurred between November and January when the Bitcoin wallets count grew by an impressive 79,000. This spike notably coincided with the collapse of the crypto exchange FTX, which saw Bitcoin prices plummet from over $22,000 to briefly under $16,000.
Interestingly, the rise of Bitcoin Request for Comment (BRC-20) tokens has not had a substantial effect on the growth of Bitcoin-rich wallets. Since the launch of the BRC-20 token standard in March, a mere 30,000 new wallets holding a single Bitcoin have emerged.
This new token standard facilitates developers to issue tokens on the network and foster decentralized finance (DeFi) services, such as lending and borrowing. This has culminated in Bitcoin blockchain fees surging to a two-year high due to the heightened demand for block space. Altcoins issued on Bitcoin reached a cumulative market capitalization of as high as $1.6 billion earlier this month.
However, this positive trend doesn’t overlook a critical observation. Tom Rodgers, Head of Research at ETC Group, points out that most of the current Bitcoin transactions emanate from smaller wallets. He says, “During the last peak in 2019, most Bitcoin transactions skewed towards larger transactions, in the range of $1,000 to $10,000. This suggests most Bitcoin users were using the blockchain for trading.”
Despite this trend, the number of individual wallets holding a whole Bitcoin crossing the one million mark is a testament to Bitcoin’s resilience and an indicator of its enduring appeal among long-term investors. As more wallets join this exclusive club, Bitcoin’s place as a premier store of value continues to solidify.