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-asset’s on-chain ‘health’.
💡 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 users’ 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.
⭐️ 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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