Active Addresses (Bitcoin)

Active Addresses measures the number of unique addresses interacting with the network. The index provides insights into network activity and user engagement.

Network Adoption as Leading Demand Signal

Active Addresses directly measure organic network usage, acting as a proxy for real-world adoption. Sustained growth in unique interacting addresses often precedes price appreciation, as seen in Ethereum's 2020-2022 cycle where active addresses expansion correlated with a 5,560% ETH rally. This metric filters out noise from inactive "zombie wallets" (addresses holding assets but not transacting), focusing instead on engaged participants likely to influence market liquidity.

Speculative Activity Detection

Sharp spikes in Active Addresses frequently signal retail-driven speculation:

• 93% correlation between ETH price peaks and Active Addresses Ratio spikes since 2018
• Bitcoin's March 2025 active address surge to 912,300 preceded a 22% price reversal within 72 hours

The metric's 100-day SMA provides a smoothed view of speculative pressure, with sustained breaks above historical norms (>1.2x 5-year average) indicating overheating.

Active Addresses data is sourced by analyzing blockchain transactions to identify unique addresses participating as senders or receivers, excluding duplicates and the null address. The metric aggregates these addresses over specified time intervals (daily, weekly, monthly) and normalizes values relative to historical averages for comparative analysis.