The number of active addresses on the Bitcoin network has decreased by nearly 60% over the past six weeks, from 1.3 million to about 500,000.

The collapse in activity led to the fact that Ethereum surpassed Bitcoin in the number of active addresses: on July 27, there were about 200,000 more active wallets on the Ethereum network than Bitcoin.

This is the third time this month that Ethereum has also overtaken Bitcoin on June 5, 2021 and June 6, 2021. The last time ETH was on top was in early 2017.

Twitter analyst Keith, who is known for his bearish grip, also noted that the number of active Bitcoin addresses has fallen to the lowest level since April 2020 based on the weekly moving average.

Several factors could be contributing to the sharp drop in the number of active Bitcoin addresses, including a discount of more than 50% after Bitcoin’s continued rally in May and the subsequent sideways market movement, as well as a massive collapse in network hashrate during the recent Chinese crackdown to local Bitcoin mining. .

Active Ethereum addresses have increased over 9% over the past week to 700,000, despite the fact that the price of ETH has fallen by more than 10%. However, the number of active Ethereum addresses is still down 22% since the start of the 900,000 April peak.

flip clock
Active addresses are the latest metric by which Ethereum has outperformed Bitcoin, with the Blockchain Center Flippening Index estimating Ethereum transaction fee revenue at over 300%, while the total number of transactions is up nearly 500%.

However, Bitcoin also regained the lead in both trading volume and transaction volume after recently lagging behind Ethereum.

Flipping Index: Blockchain Center
According to a June 23 report from network analytics provider Glassnode, the total number of unique addresses interacting with DeFi protocols has continued to rise since May, indicating that DeFi activity has increased despite the broader trend towards cryptocurrency.

Related: Double ETH Nearly Banned in DeFi from Control Panels: Glassnode

The data shows a nearly 40% increase in the number of wallets interacting with DeFi protocols since early May, bringing the total number of users to more than 2.9 million. Thus, the continued demand for DeFi from new users may explain Ethereum’s recent strength in network activity versus Bitcoin.

Source: CoinTelegraph