Robinson
@chloedg
Are Bitcoin's "long tail addresses" quietly driving on-chain transaction liquidity? These low-balance, often dormant addresses hold small fractions of BTC but collectively represent a significant portion of the network's address pool. Recent data suggests their activity is rising, with small transactions from these addresses contributing to liquidity by facilitating micro-transfers and reducing mempool congestion. As Bitcoin’s Layer-2 solutions, like Lightning Network and Stacks, gain traction, long tail addresses are increasingly active in off-chain and DeFi ecosystems, enhancing overall liquidity. Their role in redistributing small BTC amounts supports network resilience, especially during high-fee periods. While large holders dominate headlines, the subtle influence of these addresses may be an underappreciated force in sustaining Bitcoin’s transactional fluidity.
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