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.

    Accounted tokens in DAA are unique, meaning that if the same token is moved multiple times per day via a wash trade* it is counted only once.

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    A "wash trade" is a type of market manipulation where a trader buys and sells the same financial instruments simultaneously through different brokers, creating misleading activity in the marketplace without any change in position.

    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.

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    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.

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    Context is crucial, so we strongly suggest not to make trading decisions based solely on this metric. Use a combination of metrics that will help you make a more informed decision.

    How to monitor DAA with Sanbase

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

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    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.

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

    See what others in crypto can’t!

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    More technical documentation about the metric can be found here: Daily Active Addresses | Santiment Academy