The number of New Addresses on-chain can be an effective tool to gauge both the magnitude, trend and momentum of increasing demand for the DeFi token and potentially for the respective DeFi product.

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.

This metric, compares the monthly average 🔴 of new addresses against the yearly average 🔵 to underline relative shifts in dominant sentiment and help identify when the tides are turning for DeFi token demand.

• Monthly 🔴 > Yearly 🔵 indicates an expansion in DeFi token holders and hence an expansion in demand for DeFi token holders.

• Monthly 🔴 < Yearly 🔵 indicates a contraction of new users and could potentially showcase a deteriorating of the adoption of the underlying DeFi product.