This week saw a new historical breaking in the number of Bitcoin wallet addresses holding a non-zero balance. The first, most widely used, and most prominent cryptocurrency by market valuation, the Bitcoin network is still gaining momentum despite the challenging bear market of 2022 and the unfavorable 2023 outlook for the worldwide economy.
As per cryptocurrency analytics company Glassnode, the introduction of Bitcoin nonfungible tokens (NFTs), also known as Ordinals, has pushed the overall number of non-zero Bitcoin addresses to a latest all-time high of 44 million.
The Rise of Non-Monetary Solutions on Blockchain
According to Glassnode, the recent “short-term boost in Bitcoin network activity” caused by the Ordinals boom has attracted many “new active users” with non-zero BTC balances.
The protocol has set a record as the first non-monetary solution on the Bitcoin network in the 14 years since it initially appeared, according to statistics from Glassnode, a prominent independent blockchain analytics company.
The 44.06 million wallet addresses having non-zero balances at the time of this publishing are shown on an updated chart by Glassnode.
According to Glassnode, the increase in addresses was caused by Ordinals carrying a significant payload of data and new active users rather than the conventionally accepted massive payload of coin volume.
Additionally, the presence of Bitcoin Ordinals on the network has improved mean block size, pushing it from 1.5-2.0MB over the previous seven days to an “upper range” of 3.0-3.5MB.
However, there has been some debate regarding how the NFT-like images have affected Bitcoin.
Adam Back, the CEO of Blockstream, and other well-known “Bitcoiners” have recently stated their dislike for the Ordinals protocol, arguing that it diverges from Bitcoin’s intended use as a peer-to-peer electronic cash system.
Others though, have been more receptive to the notion. Dan Held, a proponent of Bitcoin, has repeatedly claimed that Ordinals increase the “financial use cases for Bitcoin.”
The Key Indication of Bitcoin Non-Zero Address Increase
This information is released when interest in investing in Bitcoin, a digital currency, continues to soar. Bitcoin has the potential to give consumers more financial flexibility and security than conventional currencies because it is a decentralized currency.
A vital indicator of the adoption and expansion of cryptocurrency is the number of non-zero Bitcoin addresses. It speaks of the variety of specific addresses with a balance over 0.
The non-zero measure gives a more realistic picture of the number of unique users on the network, even though some users may have multiple addresses.
In January 2021, when there were 36.8 million non-zero Bitcoin addresses, the previous high was hit. Since then, cryptocurrencies have gained enormous popularity, especially with businesses and institutional investors.
Beyond Bitcoin Investment
The growing recognition of Bitcoin as a reliable investment is one of the main factors influencing the increase in its popularity. Major financial organizations have recently announced plans to handle Bitcoin transactions including PayPal, Square, and Visa. This has contributed to the currency’s legitimacy in the eyes of many investors, increasing demand.
Growing knowledge of the drawbacks of conventional banking systems is another factor influencing the adoption of Bitcoin. The necessity for alternative financial systems that might offer more adaptability and security during crises has been brought to light by the global epidemic. For individuals looking for an alternative to conventional banking systems, Bitcoin is a particularly appealing choice due to its decentralized and unchangeable nature.
However, worries regarding Bitcoin’s environmental impact have also grown as its popularity has grown. Numerous detractors claim that the quantity of energy needed for bitcoin mining is unsustainable in the long run. In response, many supporters of the currency have suggested using sustainable energy sources and alternate mining techniques.
Despite these reservations, the continuous use of Bitcoin is evidence of the rising popularity of decentralized money and alternative financial structures.
It is becoming more evident that Bitcoin has the potential to upend established financial systems and give users more financial independence as more people join the network.
The fact that there are already 44 million non-zero addresses for Bitcoin, a record, is a glaring indication of the cryptocurrency’s rising popularity. It’s becoming more and more evident that Bitcoin can upend established financial systems and give people more financial independence as more users join the network. However, if Bitcoin is to maintain its rapid growth over the long term, issues regarding the environmental impact of mining must be resolved.