Description
Definition. This chart shows the 90-day change in Active Supply, decomposed into the Issuance component 🟢 and Transaction component 🔴, compared to the sum total 🟣. Changes to Active Supply are influenced by two factors:
Transactions which change the Active-to-Vaulted cointime balance of the existing supply between blockheights N and N-1. This is regulated by Liveliness Incremental Change.
New issuance which is sorted into Active and Vaulted Supply corresponding to the newly adjusted liveliness at blockheight N. This is regulated by Liveliness.
Technical. With S the Circulating Supply and L the Liveliness (V = 1 - L the Vaultedness), the two components are computed over a 90-day window as:
Issuance component = diff(S, 90) x L(green columns)Transaction component = (S - diff(S, 90)) x diff(L, 90)(red columns)Total = Issuance + Transactions(purple line)
Interpretation. Active Supply growth dominates when the volume of cointime destruction exceeds cointime creation (negative coinblock storage). This is typically observed during periods of elevated market interest, volume, and general activity. Such structure is more commonplace in bull markets and early phase bear markets, as long-term investors divest and distribute coins out of cold storage. The decomposition separates how much of that growth is organic (newly issued coins entering the active region) versus behavioral (existing holders spending dormant coins), with the transaction component carrying the market signal.
Notes. Built from Liveliness and Circulating Supply. The supply regions themselves are charted in Active and Vaulted Supply; the mirror-image decomposition is Vaulted Supply Change Decomposition, and the regulating oscillator is Liveliness Incremental Change. 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).