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Daily Address Net Growth

Overview

Daily Address Net Growth measures the net change in the number of addresses holding a token over a 24-hour period. This metric tracks the balance between new addresses acquiring the token and existing addresses liquidating their entire positions, providing insights into holder base expansion or contraction.

Definition

Daily Address Net Growth is calculated using the following formula:

Daily Address Net Growth = New Addresses with Balance - Addresses with Zero Balance

Where: - New Addresses with Balance: Addresses that hold the token for the first time (balance_usd > 0) - Addresses with Zero Balance: Addresses that previously held the token but now have a zero balance

Significance

  • Net Adoption Rate: Shows whether the token is gaining or losing holders on balance
  • Holder Sentiment: Reflects the overall trend in holder acquisition and retention
  • Growth Momentum: Provides a more nuanced view than raw new address counts

Interpretation

  • Positive Values: Indicate net growth in the holder base (more new holders than exits)
  • Negative Values: Show net reduction in the holder base (more exits than new holders)
  • Magnitude: Larger absolute values indicate stronger movement in either direction
  • Trend Changes: Shifts from positive to negative (or vice versa) may signal important sentiment changes

Analysis Applications

  • Market Cycle Identification: Negative growth often precedes bearish periods
  • Project Health Assessment: Sustained positive growth suggests ongoing adoption
  • Divergence Analysis: Comparing with price action can reveal potential reversals
  • Holder Base Stability: Low volatility in net growth indicates a stable holder base

Considerations

  • Exchange wallets represent multiple users but count as single addresses
  • Token migrations or contract upgrades may cause temporary distortions
  • Small-value holders (dust) should be filtered out for more meaningful analysis
  • Weekly or monthly averages may provide better insights than daily fluctuations

Parameters

This indicator uses the base parameters for time range and resolution settings.