Total Addresses

Overview

The Total Addresses indicator monitors three key metrics:

Total Addresses: All addresses ever created one point have held a particular crypto-asset, including those that still do.

Total with Balance (Holders): All addresses that currently hold this particular crypto-asset.

Total Zero Balance: All the addresses that used to hold a crypto-asset but no longer do.

Put simply Total Addresses = Total with Balance + Total Zero Balance

The IntoTheBlock team has Total with Balance selected as default as it is more indicative of a crypto-assetโ€™s on-chain โ€˜healthโ€™.

๐Ÿ’ก How can I use it?

In a long-term horizon, the total number of addresses with a balance is indicative of the interest in holding and investing in a given crypto-asset. In general, an increase in the number of addresses with a balance is positive as it signals a more robust and growing user base.

While the total number of addresses with a balance does not exactly match the number of holders, it offers a valuable approximation to the amount of people holding a crypto-asset. There are cases where one user may have multiple addresses (such as leaving crypto in multiple addresses for safety purposes), but also scenarios where one address may hold multiple usersโ€™ funds (centralized exchanges).

In shorter time frames, the total number of addresses with a balance can provide indication of trader positioning and potentially be a leading indicator of price activity. As seen in the graph above, the total number of addresses with a balance of Bitcoin, increased significantly prior to price breaking out, likely a signal of investor confidence building up in advance.

โญ๏ธ Quick Tip: Changes in the total number of addresses with a balance can signal strength/weakness building up as more/less investors look to hold a crypto-asset.

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