Daily Active Address Momentum

Overview

This pillar analyzes the momentum of daily active addresses on a blockchain to gauge network health and user adoption. It provides a fundamental view on a crypto asset's value, moving beyond simple price speculation.

What It Does

It calculates and tracks the 30-day moving average of daily active addresses (DAA) for a specific crypto asset. This on-chain activity trend is then directly compared against the asset's price trend over the same period. The pillar identifies key divergences where user activity and price action move in opposite directions.

Why It Matters

In crypto, user activity is a primary driver of long-term value. A rising price without a corresponding rise in active users can signal a speculative bubble, while rising activity can precede a price breakout. This provides a leading indicator of market sentiment and fundamental strength.

How It Works

First, the pillar aggregates daily active address data from on-chain sources for a given crypto asset. It then computes a 30-day simple moving average (SMA) to smooth out daily noise. Finally, this DAA momentum is plotted against the price momentum to identify bullish or bearish divergences, signaling potential future price movements.

Methodology

The core calculation is the 30-day Simple Moving Average (SMA) of Daily Active Addresses (DAA). A Bullish Divergence is flagged when DAA_30d_SMA_slope > 0 while Price_30d_SMA_slope <= 0. A Bearish Divergence is flagged when DAA_30d_SMA_slope < 0 while Price_30d_SMA_slope >= 0. The slope is calculated over a 14-day lookback period on the SMA values.

Edge & Advantage

This provides an edge by revealing the underlying network health that pure technical analysis misses. It helps identify unsustainable price rallies or undervalued assets with growing user bases before the market reacts.

Key Indicators

• DAA Divergence

  high

  Measures the difference in trend between active address growth and price movement.

• New Address Growth

  medium

  Tracks the rate at which new wallets are being created on the network, signaling user acquisition.

• Transaction Count

  low

  The total number of transactions, indicating the level of economic activity on the network.

Data Sources

• Glassnode

  Provides comprehensive on-chain intelligence and metrics for various cryptocurrencies.

• The Graph

  A decentralized protocol for indexing and querying data from blockchains.

• Dune Analytics

  An open platform for querying blockchain data with SQL and creating dashboards.

Example Questions This Pillar Answers

• → Will Ethereum's price surpass $4,000 by the end of the quarter?
• → Will Solana have more daily active users than Avalanche by year-end?
• → Will the price of Bitcoin rise following a sustained increase in network activity?

Tags