Definition. Incremental Liveliness describes the one-day change in Liveliness occurring between each mined block, shown as columns (14-day median, purple) against price (grey). This describes the change in network state at each blockheight within a Cointime Economics framework.

Technical. The series is the first difference of Liveliness, smoothed with a 14-day moving median:

• Liveliness Incremental Change = median(diff(Liveliness, 1), 14)

Interpretation. The oscillator reads around the zero line:

• Values greater than 0 signal that, on net, coinblock destruction across the network is dominant, and uptrends indicate that coinblock destruction is occurring at a greater magnitude than the prior observation.

• Values less than 0 signal that, on net, coinblock storage across the network is dominant, and downtrends indicate that coinblock storage is occurring at a greater magnitude than the prior observation.

This oscillator will experience positive spikes when there is a large scale expenditure of cointime. Such events are typically associated with high volatility market environments such as late-stage bull markets (as long-term investors take profits) or during capitulation events (as investors spend in panic). Conversely, deep negative values describe periods of heavy coin dormancy, and are typical of later stage bear markets, and periods of accumulation and/or lack of market interest.

Notes. Built from Liveliness. The underlying cumulative state variables are charted in Liveliness and Vaultedness; the per-block ratio form is Concurrent Liveliness. This measure also regulates the Transaction component of the Active Supply and Vaulted Supply change decompositions. Developed within the Cointime Economics framework for Bitcoin, a joint venture between Glassnode and ARK Invest, with full details available in two formats: an overview primer (Version I published via ARK) and a comprehensive guide for specialists (Version II published via Glassnode).