Crypto Hotshots 2022 🔥♨️

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Telegram
Voice of Crypto
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
    • Sponsored
    • Global Crypto Events
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
  • Know Us
    • About Us
    • VOC Team
    • VOC Vigilantes
    • Brands Who Trust Us
    • Contact Us
Reading: 4 On-chain Indicators Crypto Traders use to Track Bitcoin Network Activity
Share
  • bitcoinBitcoin(BTC)$27,767.00
  • ethereumEthereum(ETH)$1,768.73
  • tetherTether(USDT)$1.01
  • binancecoinBNB(BNB)$326.33
  • usd-coinUSD Coin(USDC)$1.01
  • rippleXRP(XRP)$0.436167
  • cardanoCardano(ADA)$0.362964
  • dogecoinDogecoin(DOGE)$0.076150
  • staked-etherLido Staked Ether(STETH)$1,763.95
  • matic-networkPolygon(MATIC)$1.12
  • Events
  • Videos
  • Podcast
Voice of CryptoVoice of Crypto
Aa
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
  • Services
  • Know Us
Search
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
    • Sponsored
    • Global Crypto Events
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
  • Know Us
    • About Us
    • VOC Team
    • VOC Vigilantes
    • Brands Who Trust Us
    • Contact Us
Follow US
Copyright © 2023 Voice of Crypto. All Rights Reserved
Voice of Crypto > News > 4 On-chain Indicators Crypto Traders use to Track Bitcoin Network Activity
News

4 On-chain Indicators Crypto Traders use to Track Bitcoin Network Activity

Jatin Sewani
Last updated: 2023/03/24 at 4:42 PM
Jatin Sewani Published July 15, 2022 March 24, 2023
Share
VOC, Voice of Crypto, Bitcoin, BTC

When it calls to measuring details of the Bitcoin network, on-chain activity is one of the significant factors that come into the limelight.

Contents
Bitcoin Network Active AddressesNumber of New AddressesBitcoin Network Transaction CountsTransfer Volume

Such metrics describe the health, growth, and other important intricacies of the Bitcoin network. It gives useful insights about the user base and daily active users and helps decipher the Bitcoin network effects.

Generally, network effects mean an increase in the number of current network participants. This eventually increases the value and utility of the network.

Bitcoin Network Active Addresses

When a Bitcoin network user sends coins from one address to another through their wallet, they usually interact with the network.

This could be any transaction, withdrawal, deposit to an exchange, a payment to someone, or shifting funds to another personal wallet.

This metric shows how many users were active on the Bitcoin network each day.

– Increasing Trendline: This basically indicates an increase in activity, new users, and attention. As more and more users interact with their Bitcoin wallets. This clearly indicates a healthy network suitable for creating a bullish sentiment in the market.

– Decreasing Trendline: On the contrary, this is indicative of falling demand, hence the lower activity in terms of network usage. This is directly associated with bearish sentiment in the market.

Number of New Addresses

Similar to active addresses this metric is a little more advanced. This metric tracks when entries that have never received coins enter the market.

Since most Bitcoin wallet software generates a new address for every transaction, this metric behaves similarly to Active Addresses

Higher the value of the metric, the higher signal of increasing network effects. This is directly linked to increasing network effects. On the contrary, when the network is less active that day, fewer entities are interacting, therefore its signals decreased network effects.

Bitcoin Network Transaction Counts

This metric feature measures the total number of confirmed transactions each day. They include all types of transactions. Simple transactions include payments, exchange deposits, withdrawals, etc.

When there is a higher trend in transaction counts, it is an attribution of increasing demand for value settlement and block space.

Otherwise, a declining trend means fewer transactions were being sent out that day. This suggests a lower demand for value settlement and block space. It gives signals for decreased network effects.

One thing to note, while analyzing transaction counts, try to consider new technological capabilities. Like transaction batching done by exchanges can influence the deposit records.

It is more suitable to compare transaction counts to recent historical changes where technological conditions were alike.

Transfer Volume

This metric measures the total amount of Bitcoin sent across the network daily.

An increase in value is an attribution of higher value settlement in terms of bitcoin on the network. This is suggestive of increased utilization and greater demand for the orange coin.

On the contrary, when less volume is transferred over the network, the utilization declines, and less value is transferred on the network.

While you’re accustomed to these indicators, check out our previous post on Bitcoin Network’s performance through analysis using a few indicators given above.

You Might Also Like

Fate of TRX Amid SEC Crackdown on Tron

Wells Notice: What does it Mean?

USDD Crash, after SEC Opens Investigations on Justin Sun

Arbitrum Airdrop to go Live Today, Know All About It

Bitcoin Price Possibly Targeting New ATH this Cycle?

TAGGED: Bitcoin, Crypto Exchange
Share this Article
Facebook Twitter Email Copy Link Print
Previous Article VOC, Voice of Crypto, Stepn, STEPN Scores $100 Million in Profits, GMT Price Up By 7%, Can the Rally Continue?
Next Article VOC, Voice of Crypto, ETH The Shadow Fork Affect: ETH Price Jumps 15% in a day, $1500 level Inevitable?
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Binance

Follow US

Find US on Socials
Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Subscribe to our Newsletter

Get Newest Articles Instantly!

Ledger
Popular News
Web3 Shorthand
Web3 Shorthand: A Glossary for Crypto Newbies
Voice of Crypto Tron TRX
Fate of TRX Amid SEC Crackdown on Tron
Quick-Tips-To-Avoiding-A-Fake-Crypto-Wallet
Quick Tips To Avoiding A Fake Crypto Wallet

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Telegram
Voice of Crypto

Voice Of Crypto hits a beat with almost 15 million users, churning out the best news and content in the Web3, crypto and blockchain space

Subscribe to our newsletter

You can be the first to find out the latest news and tips about trading, markets...

  • Advertise With Us
  • About Us
  • Privacy Policy

Copyright © 2023 Voice of Crypto. All Rights Reserved

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?