Emily Walker
This article examines the shifts in transaction activity on the Bitcoin network throughout 2024, based on on-chain data.
Mixed Trends in Bitcoin On-Chain Metrics for 2024
A recent update from IntoTheBlock, a market intelligence platform, highlights the changes in critical Bitcoin indicators over the past year.
The following infographic summarizes the data shared by the analytics firm:
The infographic’s first metric, “Number of Addresses,” tracks the total wallets on the Bitcoin blockchain. By December 2023, this figure was 51.67 million, increasing to 53.16 million by December 2024, indicating growth in the cryptocurrency’s user base.
However, despite this growth, network activity has declined. The second metric, Daily Transactions, shows a drop from a monthly average of 550,000 transfers at the end of 2023 to only 515,000 at the close of 2024, a decline exceeding 6% in Daily Transactions.
In contrast, the Daily Large Transactions metric, which accounts for transfers exceeding $100,000, has risen over 44% during the same timeframe. This suggests that larger investors, often referred to as whales, have remained active, while smaller investors appear to be reducing their trade volume.
Additionally, the trend of holding onto Bitcoin seems to have strengthened. The count of Long-Term Holders (LTHs) increased from 35 million in 2023 to 38.5 million in 2024, indicating that many investors are committed to holding their assets for more than a year, which could be a positive sign for Bitcoin’s long-term prospects despite significant price increases over the past year.
A less favorable trend is seen among miners, who have reduced their holdings by approximately 60,000 BTC, equivalent to around $5.8 billion, resulting in a 3% decline in total miner assets.
Current BTC Price Status
Bitcoin is currently striving for a rebound, recently surpassing the $96,800 threshold. It remains uncertain whether this upward movement will succeed or if it will falter as previous attempts have in recent weeks.