Bitcoin’s network saw a notable surge in activity, driven by increased on-chain transaction volume and dormant Bitcoin re-entering circulation.
This development, highlighted by recent data from Santiment, suggests a shift in the behavior of long-term holders. According to the market intelligence platform, the movement of stagnant Bitcoin has historically signaled future price growth.
As more dormant BTC moves back into circulation, the market anticipates potential upward momentum for the crypto.
Bitcoin On-Chain Volume Hits 7-Month
The chart shared by Santiment focuses on two primary metrics: on-chain transaction volume and the “Age Consumed” metric, which measures how much dormant Bitcoin is being moved. On Tuesday, Bitcoin’s on-chain transaction volume saw a significant spike, totaling $37.4 billion, marking the highest daily volume since March 12, 2024.
Age Consumed Metric
A key element in the network’s recent activity is the “Age Consumed” metric. This metric tracks older Bitcoin that has remained inactive for an extended period but is now being moved. On Tuesday, this metric showed a dramatic increase, indicating that a substantial portion of the $37.4 billion in transaction volume came from previously inactive BTC being transferred.
Santiment’s data points to a whale transaction involving the withdrawal of 250 BTC, valued at $15.7 million, from Binance. This transaction contributes to the overall surge in on-chain volume, as the whale had previously stashed 10,158 BTC tokens at an average cost of $67K in March and April 2024.
Growing Adoption Reflected in New Addresses
Alongside the surge in on-chain volume, data from IntoTheBlock shows a notable increase in new Bitcoin addresses. Over the past week, new addresses have grown by 11.54%, with 325.87k new addresses recorded for the week ending October 7, 2024.
This uptick reflects growing interest in Bitcoin and suggests a potential expansion of the user base. Historically, spikes in new addresses have been correlated with rising Bitcoin prices, as seen during the major bull runs of 2017 and 2020-2021.
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