Unchained Capital has discovered an increase in the number of active BTC wallets on the blockchain, having updated its ‘Hodlwaves’ chart gauging how investors treat their Bitcoin portfolios.
According to the bitcoin financial services company, this year has seen an increase in both long-term and short-term investors. The number of coins to have moved on the chain, according to Unchained Capital, is the highest since 2018 and BTC addresses have gone up 15%.
It's not just that wallets are proliferating, Unchained added. Dormant wallets have shaken off their slumber and they now represent one of the largest segments of owners, accounting for 13.5% of all addresses.
‘Hodl’ is crypto slang referring to the practice of keeping, instead of selling, your assets and Unchained Capital also found that long-term investors have been more inclined to hodl their assets.
Unchained Capital defines dormant wallets as those that have been inactive for anything between three and five years.
Conversely, wallets that have been inactive between five and 10 years has been going up, with many probably lost as early investors had quit the Bitcoin craze – some may have lost millions worth of BTC without realizing.
On the other hand, newer Bitcoin owners, who only joined in the most recent bullish run that started early in 2021, have been more inclined to cash out, exchanging their Bitcoin for a quick profit.
Unchained discovered that the number of inactive wallets over the past 12 months has dropped from 65% to 55% in January 2021. This means that almost 50% of all BTC wallets are active today.