• CryptoSlate analysts examined the new address momentum, new entity momentum, and active address momentum metrics for BTC and ETH.
• These metrics showed that the BTC network is growing while the sentiment on the ETH network is the opposite.
• The data from Glassnode can be used to measure the magnitude, trend, and momentum of activity across both networks.
Overview
This article examines the new address momentum, new entity momentum, and active address momentum metrics for Bitcoin (BTC) and Ethereum (ETH). The analysis of data from Glassnode shows that there is a sturdy network growth for BTC while showing an opposite sentiment for the ETH network.
New Address Momentum
The number of new addresses recorded on-chain can be used to measure the magnitude, trend, and momentum of activity across any given blockchain. Comparing average monthly and yearly new addresses entering a market can provide more information than just looking at absolute values. The chart below reflects this comparison for BTC:
BTC New Address Momentum (Source: Glassnode)
New Entity Momentum
New entity momentum represents another metric to gauge shifts in dominant sentiment on a blockchain which can help identify when trends are changing. Comparing average monthly and yearly numbers provides better insights into overall network health than just looking at absolute numbers. The chart below reflects this comparison for BTC:
BTC New Entity Momentum (Source: Glassnode)
Active Address Momentum
Active address momentum measures how many unique addresses have taken some action over a period of time – like sending or receiving coins – which can help determine overall user engagement with a given chain. When combined with other metrics like new address and entity momentums it paints an even clearer picture about adoption levels within any particular blockchain ecosystem.
Conclusion
Overall these three metrics provide valuable information about how healthy any given blockchain is performing in terms of activity level as well as user engagement. By comparing monthly versus yearly averages we can get a more accurate look at how well each chain is performing over time rather than relying solely on absolute values which may not tell us much about underlying trends in either direction.