According to a recent analysis by Chainalysis and Fortune, although at least one of these early Bitcoin wallets tends to come back online every month, there are nearly 1.8 million Bitcoin addresses that have remained inactive for more than a year. decade.
Fortune said these wallets, not including Nakamoto's, contain about $121 billion worth of Bitcoin. While it is impossible to know whether these coins are still active or truly lost, the 1.8 million addresses represent 8.5% of the total supply of 21 million Bitcoin.
People often speculate that dormant wallets may wake up to sell Bitcoin at the opportune moment, others suggest it may be to transfer funds to another address, possibly under a service provider. Unattended wallet service is more secure.
Bitcoin is currently priced at more than 62,000 USD (as of May 13) and has increased more than 130% in the past 12 months.
MORE FACTORS AFFECTING BITCOIN PRICES
In a new post on the X platform, Santiment revealed that on-chain activity on the Bitcoin network is approaching historic lows. This revelation is based on a notable downward trend in various metrics, especially trading volume, daily active addresses, and number of whale transactions. (On-chain (transactions on blockchain) are cryptocurrency transactions that take place directly on the blockchain and are recorded and verified by its mechanisms).
According to the blockchain intelligence platform, investors have been trading less with BTC since the leading cryptocurrency hit a new all-time high price. As a result, Bitcoin's on-chain activity has dropped to its lowest level since 2019.
Analyzing the figures, Santiment found that blockchain transaction volume is falling to its lowest level in the past decade.
Furthermore, Santiment mentioned in its report that the number of daily active addresses, which measures the number of distinct addresses participating in BTC transactions on any given day, has reached its lowest level since January year 2019.
The blockchain intelligence platform also revealed that whale activity has slowed on the Bitcoin network. According to Santiment data, the number of whale transactions (greater than $100,000) has dropped to its lowest level since late 2018.
On the surface, the decline in on-chain activity seems like a worrying trend and could be indicative of an unstable market. However, Santiment notes that this price drop may not be related to the impending BTC price drop – as seen in the past weeks.
The drop in on-chain activity is a further indication of 'crowd fear and indecision' among traders, the analytics firm said. Ultimately, this highlights the connection between on-chain activity and sentiment in the Bitcoin market.