How Do ‘Active Addresses’ Attempt to Provide a More Accurate User Count than Total Addresses?

Active addresses count only the unique wallet addresses that have sent or received a transaction within a specific time frame, typically 24 hours. This metric filters out dormant or abandoned wallets and provides a better measure of current network engagement and usage.

While still imperfect due to exchanges controlling many addresses, it offers a superior proxy for utility compared to the static total address count.