Network Usage Metrics

Network usage metrics track the activity occurring on a blockchain, such as transaction volume, active addresses, and total value locked. These metrics provide a window into the actual adoption and utility of a protocol.

High usage generally correlates with higher demand for the native token, especially if the token is required for gas fees or governance. By analyzing these data points, investors can move beyond speculative sentiment and evaluate the fundamental growth of the network.

This approach is similar to analyzing revenue and user growth in traditional technology companies to determine intrinsic value.