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Daily Addresses Removed

Overview

Daily Addresses Removed tracks the number of blockchain addresses that liquidate their entire token holdings within a 24-hour period. This metric measures the rate at which holders are exiting their positions completely, providing insights into seller behavior and potential distribution patterns.

Definition

An address is counted as "removed" when: - It held a non-zero token balance at the beginning of the 24-hour period (balance_usd > 0) - It reduced its balance to zero by the end of the 24-hour period

Significance

  • Exit Indicator: Directly reflects the rate at which holders are completely exiting positions
  • Distribution Signal: Increased exits may indicate distribution phases
  • Holder Sentiment: Can reveal periods of capitulation or loss of confidence

Interpretation

  • Low Values: Suggest holder stability and continued confidence
  • Rising Values: May indicate increasing selling pressure or profit-taking
  • Spikes: Often correlate with major market events, negative news, or price corrections
  • Consistent Elevation: Could signal a sustained trend of holder base contraction

Analysis Applications

  • Market Phase Identification: High exit rates often occur during late-stage bull markets or capitulation phases
  • Risk Assessment: Sudden increases may warn of potential selling pressure
  • Whale Monitoring: When combined with balance analysis, can identify significant holder exits
  • Comparing with New Addresses: Evaluating the ratio between addresses added and removed provides net growth context

Considerations

  • Does not account for partial selling (address maintains some token balance)
  • Exchange-related transactions may distort the metric
  • Temporary movements to zero balance for transactions can cause false signals
  • Should be analyzed alongside volume and price action for fuller context

Parameters

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