Bitcoin Transactions Hit Highs As Active Addresses Drop!

The discovery of crypto has brought us constant surprises ever since. If we look back from the beginning of Bitcoin's creation till now, we see many such amazing events. Recently, the number of Bitcoin transactions reached a record level. However, even as the number of Bitcoin transactions reached record levels, the number of active addresses decreased significantly. Such an event can be said to be very surprising. As a result, such incidents raise many questions. What is really happening in the world of Bitcoin? These active addresses represent the number of unique addresses participating in transactions on the Bitcoin blockchain each day, and this metric is often taken as a reflection of the number of active users on the network. The surprising thing here is that despite the decline in active users, those who remain are incredibly active.

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Every now and then we see in the market that when a bull market starts, Bitcoin's active address increases. At that time, all the Bitcoin addresses that are basically dormant can be seen suddenly waking up. But in the present time there are some exceptions. The one-month moving average of active addresses has declined in recent months despite strong market activity.

But the exception here is that the number of active addresses has decreased but the number of transactions has increased significantly. Almost every day this number of transactions is increasing significantly even though the price of Bitcoin is currently very low. This is a figure near the ATH (All Time High). This variation indicates that the number of active addresses has decreased, but the volume of transactions per address has exploded.

Bickel's smallest single Satoshi has gained popularity over the past few years but is currently dwindling significantly. A plausible explanation for such a trend can be seen in the emergence of Runes where the Runes protocol allows users to introduce fungible tokens into the Bitcoin network through a process different from traditional inscriptions. Launched around the time of the current Bitcoin halving, runes seem to have captured a significant portion of Bitcoin users' attention. Because of the runes that led to the decline of traditional inscriptions.

If we look closely, we can see that the share of transactions attributed to inscriptions of runes has decreased since the few days after the completion of the Bitcoin halving, which coincides with the decrease in active addresses. However, even as the number of active addresses decreased, the number of transactions related to Runes increased. And also the number of these transactions contributed to the overall growth. Right now we can see that Bitcoin transactions are increasing at the current time and it has reached new highs even though the active addresses are decreasing at this time where the active addresses are supposed to be increasing. Users are experimenting with new ways to interact with the blockchain. This evolution is considered to signal a paradigm shift in the use and perception of Bitcoin.