The post What the Key Metrics for Onchain Activity Say About SOL, ETH and Other Chains in 2025 appeared on BitcoinEthereumNews.com.

Web3 is drowning in metrics, most of which paint an unclear picture. Transaction volumes, token prices and flashy headlines often mask what really matters: the quality of user engagement and the potential for organic, exponential growth. As the industry moves beyond the hype, reliable, data-driven signals of success are no longer optional — they’re essential. Here’s the good news: the tools to cut through the noise already exist. By combining multiple on-chain metrics into a single “health index” score indicating the depth and quality of overall user engagement, we can identify which chains are truly thriving and poised for long-term growth. With 2024 coming to a close, let’s dig into what these signals reveal about today’s leading chains, and what we can expect in 2025. Assessing user quality using aggregated, not isolated, data When creating a sustainable on-chain ecosystem, it doesn’t make sense to optimize any single user action. What’s needed is context — a way to quantify not just everything users are doing, but how and why it matters. One promising approach to achieve this is to aggregate user behaviors into five core categories: Transaction Activity, ranging from spot trades to smart contract interactions. Token Accumulation in the medium-to-long-term, and other “investment” behaviors. DeFi Engagement for activities like staking, lending and liquidity provision. NFT Activity such as minting, trading and utility-driven interactions. Governance Participation to quantify DAO or protocol governance contributions. Crucially, these metrics should not be treated equally. A better approach is to weigh and combine them using a Bayesian model to generate a single top-line “score.” Unlike traditional scoring systems that rely on static thresholds or simple averages, this lets us incorporate both prior knowledge (what we expect from an “average” wallet) and new evidence (actual activity observed on-chain). These dynamic, multi-variate scores are much harder to…

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Filed under: News - @ December 23, 2024 7:18 pm