Blockchain Data Shows Bitcoin Adoption Continues to Grow Even During Cottage Season

Bitcoin isn’t going nowhere.

Blockchain Data Shows Bitcoin Adoption Continues to Grow Even During Cottage Season

Bitcoin adoption is continuing to grow, even as the largest cryptocurrency is losing market share to several alternative coins, according to a report Tuesday from cryptocurrency research firm Coin Metrics.

Bitcoin’s market share, the ratio of the cryptocurrency’s value to the overall market capitalization of digital assets, is at its lowest level since April 2018. The decline in share suggests that traders are rotating into alternative coins such as ethereum (ETH), which has gained about 20% in the past week, compared to BTC’s 3% loss over the same period.

However, Bitcoin is not coming up empty-handed.

While retail investors have been pouring into dogcoin (DOGE) “and other small-cap crypto assets, BTC adoption is still growing,” Coin Metrics writes.

“The number of addresses holding relatively small amounts, i.e. 0.01 to 1 BTC, has increased by 710,000 since the beginning of the year and saw a big jump in April.”

According to Coin Metrics, the number of addresses holding a small amount of BTC increased by 610,000 in 2020.

In addition, the dollar value of total units transferred on the Bitcoin blockchain on a given day spiked to an all-time high in April, indicating more activity in the network.

“Despite the relatively subdued price action, the Bitcoin ecosystem continues to expand in the background.”

As bitcoin adoption grows, it’s possible that long-term holders are building conviction.

According to Glassnode, the monthly net position change for long-term holders turned positive in April, suggesting that profit-taking began to slow in January.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/blockchain-data-shows-bitcoin-adoption-continues-to-grow-even-during-cottage-season/
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