7 indicators every #BTC investor should be using to evaluate its network health

1. Daily Active Addresses

Here's why: Excellent proxy for user growth and useful for identifying periods of high-speculation.

Current Status:

DIY: @glassnode

2. Daily Total Tx Fees (USD)

Here's why: Perhaps the cleanest metric that shows the demand for Bitcoin block space.

Current Status:

DIY: @coinmetrics

3. % of BTC supply held for > 1 year

Here's why: Shows investor confidence and conviction in BTC as a store of value that rivals gold.

Current Status: (near ATHs)

DIY: https://www.lookintobitcoin.com/charts/1-year-hodl-wave/

4. BTC Locked on Ethereum

Here's why: Good indicator for when BTC is being used in #DeFi and becoming a productive asset.

Current Status: (>$2B locked)

DIY: @intotheblock

5. BTC Locked in Lightning

Here's why: Demonstrates Bitcoin's viability as a payment network.

Current Status: Long-term promise potentially but only modest growth in recent years

DIY: @BitMEX @defipulse

6. BTC held on exchanges

Here's why: Investors generally move coins onto exchanges when they're looking to sell.

Current Status:

DIY: @viewbasecom

7. Realized Cap

Here's why: Valuing each unit of supply when it last moved provides the aggregate cost basis for BTC holders.

Current Status:

DIY: @MessariCrypto @coinmetrics

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