There are many different metrics in the cryptocurrency industry. Looking at the number of active addresses helps gauge the popularity of a project. In the case of Waltonchain, there has been a steep drop-off in recent weeks.
The Evolution of Waltonchain Addresses
Most of the ERC20 tokens tend to note a lot of initial network activity. As more time progresses, the overall interest tends to dwindle slowly. Waltonchain is – somewhat unfortunately- a good example in this regard. Its number of active addresses has decreased rather quickly.
As the image above illustrates, the initial interest did not last long. Following the 2017 ICO hype and subsequent demise, the number of active WTC addresses took a hit. Albeit there have been some peaks along the way, the downtrend remains in effect.
During the previous week, a very step drop has become apparent. The number of active Waltonchain addresses now sits at just 77. This is the lowest point since October 2019. Why there are so few active addresses, seems correlated to the WTC price. The value of this ERC20 token sits far lower compared to about a year ago.
WTC Exchange Supply is Drying up
One would expect there to be more WTC in exchange wallets. That can explain the decline in active wallet addresses. Between 2017 and July 2019, the amount of WTC in exchange wallets kept increasing.
Following the price dip after hitting $2.58, the funds started dwindling until late September 2019. Ever since, more WTC made its way to exchange wallets. A peak is reached on January 11,2020. Over 18.5 million WTC is in exchange wallets by this time.
Since then, this supply continues to decrease. Rather aggressively, in fact. On January 23rd, just over 10,525,083 WTC remains on exchanges. That is a decrease by over 8 million, for reasons unknown.
The WTC supply on exchanges mirrors the trend in active network addresses. Both charts note steep decreases out of the blue. How all of this will affect the price, is a different matter altogether. A very peculiar development worth keeping an eye on. The future of Waltonchain may hang in the balance.