Why does the number of transactions matter in on-chain analytics?
When the number of transactions is steady or increasing, it indicates the network is performing well. This means more people are using and sticking with it, leading to new ideas and increased usefulness. Conversely, if the number of transactions decreases, it might suggest waning interest or network issues, such as slow speeds or high costs.
Monitoring these trends is crucial because it reveals the network's health and scalability. By understanding this, stakeholders can make informed decisions about improving the network, addressing issues, or identifying investment opportunities aligned with the network's growth and user needs.
When the number of transactions is steady or increasing, it indicates the network is performing well. This means more people are using and sticking with it, leading to new ideas and increased usefulness. Conversely, if the number of transactions decreases, it might suggest waning interest or network issues, such as slow speeds or high costs.
Monitoring these trends is crucial because it reveals the network's health and scalability. By understanding this, stakeholders can make informed decisions about improving the network, addressing issues, or identifying investment opportunities aligned with the network's growth and user needs.