Bitcoin Is Observing High Daily Average Wallet Creation Right Now

In a new post on X, the on-chain analytics firm Santiment has discussed about how the average Network Growth has been like for the top assets

Data from on-chain analytics firm Santiment shows that the Bitcoin network is currently observing a high amount of Network Growth, while the average daily address creation rate for XRP is lagging far behind.

Network Growth: A Key Indicator For Adoption An indicator that can be used to measure the total number of new addresses that are being created on a given network every day is Network Growth. An address is said to be generated when it clocks its very first transaction.

When the value of this indicator goes up, it can be due to new investors joining the network or old ones who had sold earlier re-investing into it. Existing users creating multiple wallets for a purpose like privacy can also naturally add to this trend.

In general, all three of these can be considered to be simultaneously at play to some degree whenever the Network Growth registers a spike, so some net adoption of the cryptocurrency could be assumed to be occurring.

Top Assets’ Network Growth ComparedDuring the past month, the average Network Growth has been clocked at 309,000 addresses per day for Bitcoin, according to the analytics firm. This places the apex coin far ahead of the rest of the sector, and it has consistently remained the top coin during the last twelve months.

Next up is Ethereum, which is lagging behind at 112,000 addresses, meaning the BTC network is expanding at a rate almost three times that of ETH’s.

There is again a large gap between second and third, with the stablecoin USDT witnessing an average of 36,400 addresses being created per day. Finally, there is XRP in fourth, severely lagging behind the rest with its Network Growth sitting at just 3,500.

The average daily address creation rate for the Bitcoin network is currently quite high. Here’s how other major assets like XRP and Ethereum stack up in comparisonhttps://t.co/p9q7Jm8b9Z pic.twitter.com/88QZxYIx7A

— Santiment Network (@Santiment_io) September 1, 2023

Concluding ThoughtsOn a historical note, adoption is something that has been constructive for cryptocurrency networks, as a wider userbase can provide for a more sustainable ground for futures price moves to grow on. That said, the effects of adoption are generally only visible in the long term.

Considering that the Bitcoin network has been growing at an appreciable rate for a while now, the asset’s bull run may be positioned well, at least in the context of userbase growth. However, it remains to be seen if this bull market can continue for much longer given that it has already run for a decent time.