- Bitcoin and Ethereum Wallet Growth Signifies Expanded Crypto Adoption, Surpassing 134.9 Million Active Users.
- Direct Impact of Bitcoin Price Volatility on Wallet Activity Suggests Strategic Buying During Market Corrections.
Recent data analysis by Santiment illustrates a significant increase in cryptocurrency holders over the past two years, culminating in December 2024. The analysis reveals a 27% rise in active Bitcoin ($BTC) wallets, now totaling 54.7 million.
😱 The crypto majority has flipped their moods from bullish to bearish in an alarming fashion these past 2 weeks. As market caps have corrected (particularly altcoins), there is far less interest in meme coins and far more interest back on Bitcoin. This crowd FUD is a healthy… pic.twitter.com/9ByahlY7MZ
— Santiment (@santimentfeed) December 23, 2024
Ethereum ($ETH) has witnessed the most substantial growth rate, with a 47% increase, bringing the count to 134.9 million wallets. Tether ($USDT) saw a 66% rise, amounting to 6.57 million wallets, while XRP ($XRP) recorded a 28% increase, reaching 5.75 million wallets.
😲 The past 2 years have seen big increases in cryptocurrency holders. Here are the number of non-exmpty wallets for crypto’s top 4 coins by market cap:
Bitcoin $BTC: 54.7M (+27% rise)
Ethereum $ETH: 134.9M (+47% rise)
Tether $USDT: 6.57M (+66% rise)
XRP $XRP: 5.75M (+28% rise) pic.twitter.com/rcd50VAikZ— Santiment (@santimentfeed) December 23, 2024
This trend signifies a broader acceptance and integration of cryptocurrencies among investors.
Impact of Bitcoin Price Fluctuations on Wallet Activity
Santiment’s study further highlights how Bitcoin price volatility directly affects wallet activity. There is a noted increase in wallet operations, particularly a 32% uptick when Bitcoin prices drop by 20%. This pattern suggests that investors might be capitalizing on price dips to accumulate more Bitcoin, reflecting their long-term confidence in its value.
📉 Crypto markets have opened the week retracing further, instilling panic toward the retail crowd. Particularly Bitcoin and Ethereum are seeing massive FUD from newer traders who joined markets in the past 2-3 months
These new traders have not seen mid-sized corrections before,… pic.twitter.com/L7yHMPLCNR
— Santiment (@santimentfeed) December 23, 2024
Additionally, the rising interest in Non-Fungible Tokens (NFTs) positively impacts Ethereum wallet activity. As NFT prices surge, the activity in Ethereum wallets has skyrocketed by 178% over the same period. This indicates that the burgeoning NFT market is driving increased usage of Ethereum, showcasing the interconnected nature of different cryptocurrency sectors.
The current price of Ethereum (ETH) is approximately $3,205.6, reflecting a 6.14% decrease in the last 24 hours. Over the past week, Ethereum has dropped 17.35%, aligning with broader crypto market volatility. Despite the recent decline, its year-to-date performance shows a robust increase of 40.61%, emphasizing its resilience over the long term.
Ethereum is trading below the key resistance level of $3,650, with significant support observed around $3,320. Its market capitalization is approximately $386.51 billion, with a 24-hour trading volume of $75.47 billion, indicating sustained investor activity despite the pullback.
The decline has been influenced by macroeconomic factors, including liquidations exceeding $1 billion in leveraged crypto positions following hawkish comments from the Federal Reserve.
