On-chain active addresses remain a partial but nuanced metric for crypto research. While high address activity can signal network adoption, it may be skewed by bots, airdrop hunters, or wash trading. For example, DeFi protocols or NFT projects often see inflated addresses during farming events without genuine user retention. Combining this metric with other data—like transaction value distribution, wallet age, or gas fee trends—adds depth. Layer-1 chains with sustained organic growth in active addresses (e.g., consistent small transactions) likely indicate healthier ecosystems. However, reliance solely on address counts risks overlooking sybil attacks or protocol-specific dynamics (e.g., Ethereum’s dominance in institutional activity). Contextual analysis remains key.

interesting take! never thought about how bots can skew the numbers. gotta look beyond just the surface metrics. thanks for the insight! 🚀