Bitcoin Hit Record Number of 22.3 Million Active Wallets in January

[Imran232]

Data shows that there were more active Bitcoin wallets in January than during any other month in its history.

image source glassnode twitter page

According to glassnode data We got this news that Bitcoin achieve another historical milestone in this January month.

Bitcoin scored yet another all-time high figure in January, apart from its record-high price of $41,940. Data from on-chain analytics firm Glassnode shows the network saw the highest ever number of active users in the past month, more than at any other point in history.

As Bitcoin is wholly decentralized, the activity on its network can be calculated by certain metrics—such as active wallets, miner outflows, and on-chain transfers. Of these, the number of active wallet addresses provides the most insight, in terms of the number of interactions on Bitcoin via transfers.

And the past month saw the highest ever figures. More than 22.3 million wallets were active on the Bitcoin network, higher than the 21.6 million figure in January 2017, when Bitcoin set the then-record price high of over $19,500.

“In January, more than 22.3 million unique addresses were active in the network sending or receiving $BTC – the highest monthly number in Bitcoin's history to date,” tweeted Glassnode. What i already mentiond in top.

As per the firm, such active addresses measure the number of unique addresses—meaning those from singular addresses instead of big batch transfers from crypto exchanges or related businesses—that were active in the network either as a sender or receiver. Only successful transactions are counted in this method, explains Glassnode on its site.

In addition, the number of new wallet addresses—the number of unique addresses that appear for the first time on the Bitcoin network—set a new high this month, passing 2017’s high figure (the previous high for the metric).

Looking at specific days, over 682,000 new wallets appeared on Bitcoin on January 7 this month, compared to 655,000 on December 17, 2020, when Bitcoin set its previous price high. But is this rally just the beginning?

Thank you writter Shaurya Malwa for giving us such a lovely news.

Thanks decrypt for shareing this detailed information.

Your reaction on this achievement

[ranochigo]

You cannot measure the number of wallets that is 'active' because the concept of wallet doesn't exist and there isn't a way to measure it with any certainty. If you were to correlate the number of unique active addresses to the number of active wallets, you'd likely have a skewed results. Most wallet usually introduce an additional address after a transaction and if anything, it could be more of an indication of people moving their funds in the transaction rather than the number of active Bitcoin wallets.

It is completely wrong to say that there are 682,000 new wallets being created but rather there are new 682,000 new addresses that has been used. Those addresses could very well belong to 10 or 100 people and thus wouldn't provide any indication to anything else.

[Imran232]

You cannot measure the number of wallets that is 'active' because the concept of wallet doesn't exist and there isn't a way to measure it with any certainty. If you were to correlate the number of unique active addresses to the number of active wallets, you'd likely have a skewed results. Most wallet usually introduce an additional address after a transaction and if anything, it could be more of an indication of people moving their funds in the transaction rather than the number of active Bitcoin wallets.

It is completely wrong to say that there are 682,000 new wallets being created but rather there are new 682,000 new addresses that has been used. Those addresses could very well belong to 10 or 100 people and thus wouldn't provide any indication to anything else.

Yeah at this point you are right man. But here is a so called named what we know that is we think every address is a wallet for us. Because it is decentralise system so we cannot truck that this all addresses from how much wallet. That is why we count all addresses as a wallet. This result is based on this thought. You know better than me because you are a legendary man and you are in bitcoin sector for a long time. But i am not. That is why i take your suggestion as a lesson for me. Thank you soo much for guide me.

[Dutchyyy]

Thanks to Wallstreetbets, crypto is getting the attention of both mainstream media and retailer investors. I expect the number of active wallets to pass the 25 million in the next 30-45 days.

[davis196]

The number of active wallets means nothing to me.We have to combine this data with other metrics.
I wonder when the crypto exchanges platforms will reveal their real numbers of ID verified users.This is way better data,compared with just a number of active BTC addresses.
I know that not every cryptocurrency user in the world has an ID verified crypto trading account,but such statistical data would be really important,in order to determine the actual number of active crypto users around the globe.

[dothebeats]

Active wallets/address/whatever means little value to crypto IMO.

Most institutions who dived into cryptocurrency are probably transferring their bitcoins on one address to another, in order to improve security and privacy for their controlled coins. New address generated with active transactions on it from the most recent dates does not signify that a new user gets into bitcoin. Stats don't lie, yes, but sometimes it isn't as on point and as accurate as we want it to be.

[Kelvinid]

Okay, let us say that active wallet addresses reach 22.3 million as per record but this will never correlate to the growing price of Bitcoin. but I'm not sure if these all numbers are truly active coz there is a possibility that some of them are already abandoned for a few months or even years.

This number just simply means that more people are using it now, it will be more numbers to come as the network keeps spreading globally. We surely expect this growth due to crypto exposure and ads attracting people out of curiosity.

Anyway, Just to ask if BTC addresses created in gambling sites and in exchangers are included in this?

[stompix]

Most wallet usually introduce an additional address after a transaction and if anything, it could be more of an indication of people moving their funds in the transaction rather than the number of active Bitcoin wallets.

This thing made me curious as a while back I was tracking the changes in the value stored in bitcoin adresses:

http://archive.vn/wip/AU2oX

So, what changed in a year, although we have more than 5 million new addresses in the under 1BTC  the funds hold by those have increased by just 80k coins, while the top has gone from 17,403,531 to 17,663,887, over 240k coins.
So, if we assume an even distribution of newly minted coins, 75% went to the "rich" and only 25% to the poor.  

Looking at those numbers I tend to think the large increase in active addresses is more done with depositing into personal addresses on exchanges or gambling sites and then having the funds swiped into large cold wallets.

[BrewMaster]

So, if we assume an even distribution of newly minted coins, 75% went to the "rich" and only 25% to the poor. 

considering that majority of the "rich addresses" belong to big exchanges and similar services then i suppose the correct conclusion based on this is that trading bitcoin became more popular as the demand increased so there are so many more people trading bitcoin today (that means they have their coins on exchanges and in those addresses).

[0t3p0t]

Data shows that there were more active Bitcoin wallets in January than during any other month in its history.

image source glassnode twitter page

According to glassnode data We got this news that Bitcoin achieve another historical milestone in this January month.

Bitcoin scored yet another all-time high figure in January, apart from its record-high price of $41,940. Data from on-chain analytics firm Glassnode shows the network saw the highest ever number of active users in the past month, more than at any other point in history.

As Bitcoin is wholly decentralized, the activity on its network can be calculated by certain metrics—such as active wallets, miner outflows, and on-chain transfers. Of these, the number of active wallet addresses provides the most insight, in terms of the number of interactions on Bitcoin via transfers.

And the past month saw the highest ever figures. More than 22.3 million wallets were active on the Bitcoin network, higher than the 21.6 million figure in January 2017, when Bitcoin set the then-record price high of over $19,500.

“In January, more than 22.3 million unique addresses were active in the network sending or receiving $BTC – the highest monthly number in Bitcoin's history to date,” tweeted Glassnode. What i already mentiond in top.

As per the firm, such active addresses measure the number of unique addresses—meaning those from singular addresses instead of big batch transfers from crypto exchanges or related businesses—that were active in the network either as a sender or receiver. Only successful transactions are counted in this method, explains Glassnode on its site.

In addition, the number of new wallet addresses—the number of unique addresses that appear for the first time on the Bitcoin network—set a new high this month, passing 2017’s high figure (the previous high for the metric).

Looking at specific days, over 682,000 new wallets appeared on Bitcoin on January 7 this month, compared to 655,000 on December 17, 2020, when Bitcoin set its previous price high. But is this rally just the beginning?

Thank you writter Shaurya Malwa for giving us such a lovely news.

Thanks decrypt for shareing this detailed information.

Your reaction on this achievement

For me it is the active addresses that has been created not wallets. One private key can provide a lot of addresses so no need to create a wallet that much. Exchanges also has addresses so I don't think "new wallets" is not the main topic in here but the addresses. Bitcoin is new so this is just the beginning.

[hatshepsut93]

It's not exactly big news that when price goes up, there's more network activity. Newcomers create their Bitcoin wallets and withdraw from exchanges, hodlers sending coins to their exchange accounts - this is all expected. You can't even use this data to predict the price, because it's a lagging indicator.

[20kevin20]

In addition, the number of new wallet addresses—the number of unique addresses that appear for the first time on the Bitcoin network—set a new high this month, passing 2017’s high figure (the previous high for the metric).

There numbers are very relative, and with increasing usage of multisig, proper coin control etc... they'll just keep accelerating in time. To me, they don't really mean much tbh..

[Twinkledoe]

It's not exactly big news that when price goes up, there's more network activity. Newcomers create their Bitcoin wallets and withdraw from exchanges, hodlers sending coins to their exchange accounts - this is all expected. You can't even use this data to predict the price, because it's a lagging indicator.

I don't think we can use that info for price speculation. The price of bitcoin was high last month, and expect that there are newcomers trying to jump the train. Few months from now, wonder if they are still active and will be used by their owners. But good news to the community, maybe there are really new crypto users , which is good for adoption, but how long they will stay?

[buwaytress]

I personally like to divide that number by 10. Just arbitrary of course. So at best 2 million active users.

 I use at least one different address a day. Many services I use, I generate a new one for each deposit. Just out of habit. In a month, I'd say I generate 50 on average use, not to mention how many others I "activate" simply by spending. Almost every spend triggers a sweep in most services too, so a single use could activate 2 new addresses even, and activate up to many more to consolidate.

[irixo10]

In as much as the news is to bring out more interesting facts about Bitcoin, and what it has achieved over the years and most especially this few months, but I still think that data or report on active wallet is not complete or wrong. I don't think there is a way to track the number  of wallets people uses to store their Bitcoin, I mean nowadays there are many wallets paper wallets, and so on or are they try to refer to addresses. Well, they did their best but they need to do more or be more explanatory, because the more Bitcoin grows, then the more people Invest in it, the more different wallets are created and there is every tendency that the wallet would be used just once. Talking about achievement, I would be reserved on the price or new ATH; that is a clear picture that Bitcoin is on the right path, it is just time and more adoption would take place.

[hd49728]

If people practice and use Coin control, they can use dozen or hundred of address in one wallet. In addition, one person can have many bitcoin wallets.

You can not connect all wallets to real owners if they do their transactions carefully and protect their privacy, anonymity.

That information can present that more usages of bitcoin but it can not identify that the bitcoin adoption is increasing. You can assume so but with some caution for unknown things.

[ranochigo]

What about using the blockchain transaction that goes through the miners and determine the number of active wallet in that way all transactions that pass through any wallet will be noticed and accounts for. I believe the aspects of wallet was not totally left out.

Do you even know what you're talking about?

Miners do not know the wallets that are being used. Miners sees the transaction the same way as every single user sees the transaction. There is no indication with regards to which wallets is being used or accounted for. If miners can see which or how many wallets are being used, your privacy would be gone in the first place.