Bitcoin (BTC) is seeing a surge in interest this summer as consumer awareness is reflected in unique network entities hitting more than two-year highs.
Unique entity growth mirrors 2017 bull run
More unique entities are joining the Bitcoin network as activity increasingly resembles the bull run to all-time highs in 2017.
According to data from on-chain monitoring resource Glassnode, as of August 4, the average weekly new entity count has returned to 140,000 — its highest since early 2018.
New entities refer to wallet addresses, with Glassnode defining them as “a cluster of addresses that are controlled by the same network entity.”
Overall growth in activity comes as price action flips bullish above $10,000, with five figures holding as support for the first time since 2019.
Bitcoin new entities 7-day moving average chart. Source: Glassnode
Square shows “unbelievable” Bitcoin demand
Payment company Square hit almost $1 billion in Bitcoin revenues in the second quarter — and it’s proof of a bull market, a famous commentator said.
In its "Q2 2020 Shareholder Letter" this week, Square revealed quarterly BTC revenues of $875 million for its Cash App service, which has 30 million active monthly users.
The figure beats the first quarter, which totaled $306 million, by almost 200%.
Compared to the first quarter of 2018, when Square first began to support Bitcoin, the figure is 600% higher. Gross profits have also transformed, with $17 million in the second quarter this year, 711% higher than two years ago.
“Bitcoin revenue and gross profit benefited from an increase in bitcoin activities and growth in customer demand,” the company commented in the letter.
For analyst Kevin Rooke, the results were “unbelievable,” coming after months of economic instability worldwide and a dramatic squeeze in incomes for many earners due to COVID-19.
Square quarterly Bitcoin revenue. Source: Kevin Rooke/ Twitter
“That’s a bull market”
Square was already well known for its presence in the Bitcoin space. Together with investment giant Grayscale, Twitter’s sister company is responsible for buying up the lion’s share of new BTC.
In May, Square began targeting long-term Bitcoin investment strategies by releasing dollar-cost averaging functionality for users.
The move appeared to front-run a change in Bitcoin’s own fortunes, with price gains finally sweeping through the market in recent weeks after months of compression.
As Cointelegraph reported, Google Trends data further confirms an uptick in interest, similar to March and May’s block subsidy halving. Nonetheless, compared with June of last year, interest is around 40% lower while price levels are broadly similar.
Google search interest in “Bitcoin.” Source: Google Trends
At press-time levels of $11,310, BTC/USD has now delivered 215% profits versus the pit of its crash to $3,600 in March.
Parabolic Trav, a Twitter account holder known for increased activity when price action looks bullish, was clearly optimistic about Square’s performance.
“Thaaaats a bull market folks,” he summarized in response to Rooke.
Square, meanwhile, may soon not be alone among the payment giants to support cryptocurrency. As Cointelegraph reported, rumors that PayPal may soon follow suit were bolstered last month as correspondence seemed to confirm a new partnership.
Consumers on lockdown have turned to investment opportunities such as popular app Robinhood, while a dedicated monitoring resource shows that United States stimulus checks invested in BTC would have turned a 67% profit to date.