Bitcoin [BTC]: Of epoch disadvantages and increasing adoption

• Bitcoin user adoption increased despite the decline in address growth.
• Several BTC transactions have taken place since the last halving.

Despite occasional setbacks, Bitcoin [BTC] has gained significant traction as the number of non-zero addresses reached an all-time high (ATH). According to Glassnode, the calculation was 46.1 million at press time.

Read Bitcoins [BTC] Price prediction 2023-2024

This increase in adoption can be linked to a number of factors such as its growth Recognition. And this year, the cryptocurrency has shown that it can be a hedge against inflation. This was after the coin’s reaction amid the collapse of several traditional financial institutions.

New participants have their eyes on the prize

While this growth can be considered impressive, there has also been a decline in another aspect – the era. The Bitcoin Era keeps track of market patterns in terms of address growth between one four-year halving cycle and the next.

According to Glassnode, the epoch increased by 4.54% at the time of writing. However, the number of addresses added was 16 million, less than the previous cycle, which was 21 million.

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#Bitcoin Adoption continues to increase as the number of non-null addresses reaches an ATH of ~46.1 million.

Comparing for growth across epochs, we notice a decrease in relative growth but an increase in absolute growth as the number of non-zero addresses continues to expand:

🔴Epoch… pic.twitter.com/iXFw52Y5eD

— glassnode (@glassnode) 6 May 2023

From Bitcoin’s inception to the first halving cycle, addresses increased by one million. The second epoch recorded 8x the first, while the third cycle added another 3x. But with roughly 368 days until the halving, there was still time for the fourth to follow the same pattern.

Meanwhile, there has been a remarkable upswing in Bitcoin market valuation growth since the unfortunate capitulation of 2022. For the uninitiated, the Bitcoin supply and demand rate determines the market value.

With an indexed growth of 271% since the last halving, the market value had increased to 558 billion dollars. This reflects an increase in demand for the coin and its popularity over a longer period of time.

Source: Glassnode

BTC builds up the hash

In addition to the indexed growth, the hash rate is a value that has increased sustainably during the last halving period. Bitcoin hashrate acts as a measure of computational power, and is used to determine the health, mining difficultiesand security in the Bitcoin network.

At press time, the hash rate had grown exponentially by 184.59% as it rose to 439.23 Exahash per second (EH/s).

Source: Glassnode

Despite the unfortunate events that rocked the crypto economy over most quarters in 2022, the realized gain/loss growth improved from the previous halving.

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Source: Glassnode

At the time of writing, data on the chain showed that both realized gains and losses had increased by over 300%. This confirms the notion that demand had subsequently increased, and a lot of coin was used in transactions during the period.

As the halving approaches, increased adoption may be reinforced, especially as institutions have gradually embraced Bitcoin and allocated a portion of their own reserves to BTC. In addition, several retail investors have also recognized the potential of Bitcoin as a potential investment tool.