Understanding Network Activity
Network activity means real blockchain usage. We do not have on-chain data, so this component reads trading volume relative to market cap instead — a market-side approximation of the same idea.
What is Network Activity?
Network activity tracks how much a blockchain is actually used — daily active addresses, transaction count, on-chain volume. Those require an on-chain data feed. What we measure instead is exchange trading volume relative to market cap, which reflects market interest rather than protocol usage. The two often move together, but they are not the same thing.
Why It Matters
A coin with high market cap but low network activity might be overvalued — people are speculating rather than using it. Conversely, high activity with a lower market cap suggests the market hasn't yet priced in the real usage.
How We Use It
Network Activity carries 4% of the Value Score. We use the Volume/MarketCap ratio as a market-side proxy until an on-chain data source is integrated. NVT and Volume/MCap read the same ratio, so the three share a combined 12% rather than counting it three times over.
Current Top 5 Coins by Network Activity Proxy
How our algorithm currently scores the leading crypto assets on the "Network Activity Proxy" component. Higher = stronger undervaluation signal on this single dimension.
Worked Example
Tether (USDT) leads with a Network Activity Proxy value of 90/100. On this single dimension, Tether currently shows a clear undervaluation signal. Click Tether above to see the full score breakdown across all 10 metrics.