Definition. This chart compares the relative activity of small and large entities on the Bitcoin network via two oscillators: small-entity activity measured from median transfer volumes 🔵, and large-entity activity measured from mean transfer volumes 🔴, plotted alongside price (black). It is the entity-adjusted variant of Relative Activity of Small and Large Entities: transfer volumes here count only transfers between distinct entities, discarding internal shuffling between addresses of the same entity for a cleaner read on economically meaningful activity.

Technical. The oscillators are constructed by taking the ratio between the 7-day MA and the 365-day MA of entity-adjusted transfer volumes:

• Small Entities Activity = sma(Median Transfer Volume, 7) / sma(Median Transfer Volume, 365) 🔵
• Large Entities Activity = sma(Mean Transfer Volume, 7) / sma(Mean Transfer Volume, 365) 🔴

The mapping rests on the positive skewness of USD-denominated Bitcoin transfer volumes: the mean daily transfer volume has typically been larger than the median (Mean > Median), meaning small volume transactions occur with higher frequency. The median therefore tracks the activity of small-size entities, while the mean is dominated by large-size entities.

Interpretation. Tracking the trend of median transaction volumes provides a macro framework for assessing the activity level and demand of small-size entities:

• When small entities 🔵 exceed large entities 🔴, it typically suggests an influx of small size transactions, and is often associated with the excitement of bull markets and greater speculation.

• When the indicators are increasing, it can be considered a signal of higher demand from the relevant entities (short-term activity running above its yearly baseline).

• When the indicators are decreasing, it can be considered a signal of lower demand from the relevant entities.

Notes. Coined by CryptoVizArt (2022). Built from Median Transfer Volume (Entity-Adjusted) and Mean Transfer Volume (Entity-Adjusted).