The world is in a strange state of flux as the outbreak of the Covid-19 virus impacts almost every aspect of society. This outbreak has had a major say on the traditional markets, and it is also worth examining how it has impacted the cryptocurrency markets — but more than just the price.
Cryptocurrency users are a special breed as they operate in a financial space that is seen as quite revolutionary and predicated on future uses. So, with the pandemic looking like it might rewire the way we do things, how are cryptocurrency users operating through this time?
One area to look in the cryptocurrency space to get an idea of cryptocurrencies activity is at the wallet information that is transparent and available. LongHash, the crypto data analyst site, has looked for some broad trends across nine top coins and their wallets to see what has been happening in the last month or so.
Daily active address count
Longhash first looked for any signs of correlation between Bitcoin, Ethereum, Ripple, the Ethereum implementation of Tether, Bitcoin Cash, Bitcoin SV, Litecoin, Binance Coin, and Tezos, but did not find anything extraordinary.
“We found no evidence of any pattern. In the correlation matrix above, a score of 1 reflects a perfect positive correlation, a score of -1 reflects a perfect negative correlation. Any score between -0.4 and 0.4 suggests there’s little evidence of any correlation at all. And as you can see, there was little evidence of correlation between the active address count patterns of any of these tokens,” their report read.
However, in the daily active address count, there were some interesting takeaways.
“Active addresses on Ethereum (and USDT’s Ethereum implementation) have climbed pretty noticeably as the COVID-19 crisis has escalated. It may be that many users who aren’t generally active have turned to USDT as a safe haven over the past few weeks, leading to a spike in active addresses here,” Longhash found. “Binance Coin has also risen slightly.
“Active addresses on Bitcoin SV’s chain actually seem to be trending downward. This seems to have started before the global market crash dragged crypto prices dramatically downward.”
Overall, it seems as if most of these major tokens did not see too much change in their active address patterns even though this pandemic looks to have changed the entire face of the planet and how people operate.