Definition. This chart tracks the momentum of on-chain throughput by comparing the monthly average 🔴 of the daily transaction count against the yearly average 🔵, plotted over the raw daily 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), making the number of transactions on-chain an effective tool to gauge the magnitude, trend and momentum of activity across the network.

Technical. The two momentum traces are simple moving averages of the daily transaction count:

• Monthly Average = sma(Transaction Count, 30) 🔴
• Yearly Average = sma(Transaction Count, 365) 🔵

Interpretation. Due to intraday volatility in on-chain activity metrics, the absolute value of transactions on any given day can be uninformative. However, comparing the magnitude and trend of transactions 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. Built from Transaction Count. The same momentum framework is applied to other activity measures in Active Address Momentum, New Address Momentum and Transfer Volume Momentum; an entity-adjusted variant of this chart is available for Bitcoin in Transaction Count Momentum (Entity-Adjusted).