Bitcoin Adoption Accelerates: Record Address Growth and Corporate Interest in 2024

TLDR:

• Over 52 million Bitcoin addresses now hold positive balances in 2024
• Addresses holding 100-1,000 BTC control 20.3% of circulating supply
• 5% increase in large holder accumulation over past 6 months
• Forecast: 10% of U.S. companies may allocate 1.5% of cash to Bitcoin within 18 months
• Corporate Bitcoin holdings could increase by 204-519 BTC daily until 2026

The cryptocurrency landscape is witnessing significant shifts in 2024, with Bitcoin adoption reaching new milestones.

Recent data from multiple sources highlights the growing interest in Bitcoin from both individual users and corporate entities.

According to Glassnode, the number of Bitcoin addresses with non-zero balances has climbed to over 52 million in 2024. This metric, which tracks unique addresses holding any amount of Bitcoin, has shown steady growth throughout the year. After a brief dip in early January, the total number of addresses began to recover around March, with notable growth from May through September.

This increase in address count comes despite fluctuations in Bitcoin’s price, which has dropped from around $70,000 to under $60,000 since March.

The continued rise in non-zero addresses aligns with broader market patterns following Bitcoin’s halving event in April 2024.

While individual adoption is on the rise, large holders are also increasing their Bitcoin positions. Data from IntoTheBlock reveals that addresses holding between 100 and 1,000 BTC now control 20.3% of the circulating supply, equivalent to approximately 4.01 million BTC.

This represents a 5% increase from 3.82 million BTC just six months ago, indicating a robust accumulation trend among large holders.

Addresses holding between 100 and 1,000 BTC now control 20.3% of the circulating supply, equivalent to 4.01 million BTC.

This marks a 5% increase from 3.82 million BTC six months ago, highlighting growing accumulation by large holders pic.twitter.com/JwkxBgWmDS

— IntoTheBlock (@intotheblock) September 8, 2024

Corporate interest in Bitcoin is also growing. River, a Bitcoin technology company, estimates that in the next 18 months, approximately 10% of U.S. companies will allocate about 1.5% of their cash reserves to Bitcoin. This could amount to approximately $10.35 billion in corporate Bitcoin investments.

The report from River outlines several factors driving this trend. Bitcoin’s daily trading volume now consistently exceeds $10 billion, providing the liquidity necessary for institutional participation. Additionally, Bitcoin’s 24/7 trading allows companies to make financial decisions beyond normal working hours.

Regulatory changes are also supporting corporate adoption. The Financial Accounting Standards Board will enable corporations to declare their Bitcoin holdings at fair value as of December 2024, addressing previous accounting challenges.

Looking ahead, River estimates that business Bitcoin holdings could increase by between 204 and 519 BTC per day until 2026. This translates to potential daily investments ranging from $12.2 million to $31.1 million, assuming a Bitcoin price of $60,000.

As of September 2024, businesses worldwide have publicly disclosed holdings of 683,332 BTC, a 587% increase since mid-2020. While corporate Bitcoin adoption is still in its early stages, the trend suggests a continuous and fast-growing incorporation of Bitcoin into company treasury strategies.

The growth in both individual and corporate adoption comes as Bitcoin continues to mature as an asset class. Despite price volatility, the increasing number of addresses with non-zero balances indicates a broadening user base.