Definition
An active address is a blockchain address that has participated in at least one transaction during a defined time window, such as a day, week, or month. It is considered a metric used to gauge how many unique addresses are currently involved in sending or receiving cryptocurrency on a network. By focusing on recent transaction activity, active address counts help describe the level of engagement among holders and users.
This metric is distinct from the total number of existing addresses, which includes many that may be unused or dormant. Active address measurements typically treat each address as a separate unit, even if multiple addresses are controlled by the same entity. As a result, the active address count reflects visible on-chain participation rather than the exact number of individual users.
In Simple Terms
An active address is simply an address that has done something on the blockchain recently, like sending or receiving coins or tokens. If an address has no transactions during the chosen time period, it is not counted as active for that period.
Looking at how many active addresses exist at a given time gives a rough sense of how busy a network is. It shows how many addresses, out of all possible addresses, are actually being used instead of just sitting idle.