On-Chain Demand Metric

Definition ∞ An On-Chain Demand Metric is a data point derived directly from a blockchain that quantifies the level of user or investor interest in a particular digital asset. These metrics analyze transaction volumes, active addresses, or coin flows to exchanges. They provide transparent, verifiable insights into the actual activity and usage patterns on the network. Such metrics offer a foundational view of true market participation.
Context ∞ Crypto news frequently cites On-Chain Demand Metrics to provide a deeper understanding of market fundamentals beyond simple price action. Discussions often focus on how increases in active entities or transaction counts signal genuine network growth and underlying purchasing interest. These metrics are crucial for assessing the organic demand for a cryptocurrency and its long-term viability.