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 transactions on-chain can be an effective tool to gauge both the magnitude, trend and momentum of activity across the network.

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 over a monthly and yearly basis can be much more informative.

This metric, compares the monthly average 🔴 transaction count against the yearly average 🟢 to 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.

Hint: The barcode tool at the bottom of the chart will return a value of 1 🟡 when the 30D-SMA is trading above the 365D-SMA, signalling positive momentum.