Bitcoin saw some interesting changes in 2024. While some metrics showed growth, others revealed a shift in how the network is being used. Let’s break down the key findings.
Growth and Decline: A Mixed Bag
Data from IntoTheBlock shows a mixed picture of Bitcoin’s on-chain activity in 2024. The number of Bitcoin addresses increased, indicating growth in the user base. However, the overall number of daily transactions actually decreased.
- More Users, Fewer Transactions:
The total number of Bitcoin wallets grew from 51.67 million in December 2023 to 53.16 million in December 2024. Despite this, daily transactions dropped from an average of 550,000 in 2023 to 515,000 in 2024 – a decrease of over 6%.
The Rise of the Whales
Interestingly, while smaller transactions decreased, large transactions ($100,000+) saw a significant increase of over 44%. This suggests that larger investors (“whales”) are becoming more active, while smaller investors are less so.
Long-Term Holders are HODLing
The number of long-term holders (those holding Bitcoin for over a year) also increased, growing from 35 million in 2023 to 38.5 million in 2024. This could be a positive sign, suggesting confidence in Bitcoin’s long-term prospects.
Miners’ Reduced Holdings
On the other hand, miners reduced their Bitcoin holdings by around 60,000 BTC (approximately $5.8 billion), a 3% decrease. This is a factor to consider.
Bitcoin’s Price: A Look Ahead
Bitcoin’s price briefly reclaimed the $96,800 mark, but whether this is the start of a sustained recovery remains to be seen. Recent price fluctuations have been quite volatile.
