This article introduces the Active Holders metric and how to use it.
Definition
The Active Holders metric refers to the number of addresses that have sent or received a particular token in a given time.
For instance, suppose today, according to Candlestick, 1,000 addresses increased the examplecoin balance, and 500 addresses sold the tokens. Among these 500 addresses, 300 are in the 1,000 addresses that bought the token. Then the active address number of today is 1,200. (1,000+500-300)
How can I use it?
The Active Holders metric shows how many token holders are doing active transactions with the token.
Identify bullish and bearish signals
| Metric | Condition | Signal |
| Active Holders | Increase | Bullish |
Generally, if the Active Holders increase, it possibly indicates active users’ participation in this cryptocurrency.
| Metric | Condition | Signal |
| Active Holders | Decrease | Bearish |
However, a decreasing number of Active Holders reflects shrinking on-chain activities. In general, this situation indicates lower user activities of this token. In other words, fewer receivers and senders of a particular token and fewer demands.