Daily Active Addresses (DAA)

Definition

DAA is the amount of unique active addresses that participate in transactions on a blockchain network each day. It's a measure of the network's activity and usage. High DAA suggests strong user engagement and network utility. DAA can be influenced by various factors like market trends, network upgrades, or major events.

How to interpret the Daily Active Addresses metric

Generally, there's a correlation between DAA and price. For instance:

• Positive Correlation: When DAA rises, it often signals increased interest and price movement. For example, during periods when Ethereum's DAA increased, we observed a positive price trend, even if the price was initially wobbly.
• Long-term Growth: Consistent, long-term growth in DAA is a positive sign, indicating rising utility and potential for price appreciation.
• Market Top Indicator: A sudden spike in DAA can sometimes indicate a market top, signalling a rush of activity before a sell-off.

Daily Active Addresses (DAA) is a powerful metric when combined with others like Whale Transactions. DAA shows network activity, while Whale Transactions highlight big player movements. For instance, a spike in DAA with high Whale Transactions can indicate upcoming volatility.

How to monitor DAA using Sanbase

Here is a ready-to-be-copied Layout with Trading and Transaction volume for your convenience: Sanbase Daily Active Addresses Chart

As soon as you have adjusted the Chart based on your preferences (time intervals, colors, etc.) you can save it as a new private Layout. Then, using the Master selector (the bigger one on the top) you can change the currently analysed token to another while your visual preferences and metrics remain the same.

Or you can use the smaller selector to build on top of your chart and insert more metrics, even for multiple tokens at once.

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