Average Transactions Size
The Average Transaction Size indicator measures the mean transaction value for a crypto-asset on any given day. This metric is calculated in dollar terms by taking timestamps of every on-chain transaction and multiplied by the asset’s price at that time, then summing the total dollar value and dividing it by the total number of transactions. Additionally, it can also be shown in crypto-terms.
Average Transaction Size for Ethereum (All-Time)
The Average Transaction Size indicator provides an idea of what type of activity is happening on the blockchain and what type of users are transacting with this particular crypto-asset. For instance, looking at the long-term view of this metric for Ethereum, we observe that the average transaction size was remarkably high during 2017 and has since dropped sharply. This points to high amount of speculative activity taking place among whales and institutional players throughout 2017. The drop since then suggests more utility value in Ethereum as retail users bring the average transaction size down.
Average Transaction Size for Ethereum (1-Year)
Additionally, using this indicator zoomed into shorter time frames, we can identify potential tops and bottoms in price. As can be seen in the graph above, spikes in average transaction size tend to coincide with local tops and bottoms. This is likely due to more whales buying/selling towards the end of each move.
⭐️ Quick Tip: Make sure to spot spikes in average transaction size as they can be helpful at identifying moments when a high amount of institutional buying/selling takes place. Potentially this can help you spot when prices hit bottom/top.