Despite a recent market downturn, the Bitcoin network has witnessed a significant surge in new addresses, reaching a two-month high. The seven-day moving average (7DMA) recorded over 317,000 new addresses on Friday, July 5, marking a substantial increase from the 263,000 new addresses observed at the beginning of the week. This represents a notable 20% week-on-week increase, even as Bitcoin’s price has fallen by over 10% during the same period.
An increase in the number of new addresses typically suggests heightened network activity. However, this recent surge does not necessarily correlate with increased on-chain activity or higher transaction fees.
The seven-day moving average of the average transaction fee on Bitcoin has decreased to just $1.75, significantly lower than Ethereum’s average transaction fee of $2.50. For comparison, three months ago, Bitcoin’s average transaction fee was over ten times higher than Ethereum’s. Additionally, the total fees paid on the Bitcoin network have significantly underperformed compared to Ethereum. The seven-day moving average of total fees paid on Bitcoin stands at $1 million, only one-third of Ethereum’s total.
This discrepancy highlights an interesting dynamic within the Bitcoin network. While there is a noticeable influx of new participants, this increase is not currently translating into higher transaction fees or more substantial on-chain activity. The Bitcoin network appears to be experiencing growth in user adoption without a corresponding rise in transaction costs or activity levels, indicating a potential shift in usage patterns or user behavior.