Definition. This chart tracks the momentum of network adoption by comparing the monthly average 🔴 of new addresses against the yearly average 🔵, plotted over the raw daily new address count (faint orange) and price (grey). Healthy network adoption is often characterized by an uptick in daily active users, more transaction throughput, and increased demand for blockspace (and vice-versa). The number of new addresses on-chain can be an effective tool to gauge both the magnitude, trend and momentum of activity across the network.

Technical. The two momentum traces are simple moving averages of the daily count of new addresses (addresses funded for the first time):

• Monthly Average = sma(New Addresses, 30) 🔴
• Yearly Average = sma(New Addresses, 365) 🔵

Interpretation. Due to intraday volatility in on-chain activity metrics, the absolute value of new addresses on any given day can be uninformative. However, comparing the magnitude and trend of new addresses entering the market on a monthly and yearly basis can be much more informative — the crossovers underline relative shifts in dominant sentiment and help identify when the tides are turning for network activity:

• Monthly 🔴 > Yearly 🔵 indicates an expansion in on-chain activity, typical of improving network fundamentals, and growing network utilization.

• Monthly 🔴 < Yearly 🔵 indicates a contraction in on-chain activity, typical of deteriorating network fundamentals, and declining network utilization.

Notes. This chart was first featured by Glassnode in The Week On-chain newsletter (Week 34, 2022 and Week 43, 2022). Built from New Addresses. See also Active Address Momentum for the same framework applied to active addresses, and New Address Growth for the net growth of the address base.