GuideAPI Doc

Network Fundamentals

Evaluate blockchain maturity, adoption, and efficiency through valuation, utility, and capital allocation metrics.

Overview
These metrics capture the underlying health and growth of the blockchain network, combining elements of value transfer velocity, user activity, and capital utilization. They are key to understanding long-term adoption and the sustainability of network valuation.

Network Maturity

Indicates the degree to which the blockchain’s UTXO set and activity reflect long-term usage rather than speculative churn.

Formula

N e t w o r k M a t u r i t y = L o n g T e r m U T X O v a l u e T o t a l U T X O v a l u e NetworkMaturity = \frac{LongTermUTXO_{value}}{TotalUTXO_{value}}

Interpretation

  • High maturity: stable holder base, long-term adoption.

  • Low maturity: high trading activity and speculative movement.

Vanv (Valuation Adjusted by Network Velocity)

Measures the network’s valuation efficiency, adjusting market capitalization by transaction velocity to show how effectively value circulates.

Formula

V a n v = M a r k e t C a p T r a n s a c t i o n V o l u m e ∗ V e l o c i t y Vanv = \frac{MarketCap}{TransactionVolume * Velocity}

Signal

  • Rising VANV: overvaluation relative to usage.

  • Falling VANV: undervaluation or increased network utility.

Metcalfe Ratio

Applies Metcalfe’s Law to blockchain networks, estimating value growth based on user and transaction activity.

Formula

M e t c a l f e R a t i o = M a r k e t C a p A c t i v e A d d r e s s e s 2 MetcalfeRatio = \frac{MarketCap}{ActiveAddresses^2}

Insights
Metcalfe’s Law implies that network value grows quadratically with active participants. This ratio allows analysts to detect when market valuation diverges from network growth fundamentals.

Adoption Score

Quantifies blockchain adoption momentum by combining user growth, active addresses, and transaction frequency.

Formula

A d o p t i o n S c o r e = f ( A c t i v e A d d r e s s e s , T x C o u n t , T x V o l u m e G r o w t h ) AdoptionScore = f(ActiveAddresses, TxCount, TxVolumeGrowth)

Interpretation

  • Increasing score: rising adoption and user engagement.

  • Decreasing score: network stagnation or consolidation.

Capital Efficiency

Evaluates how efficiently network value is utilized in on-chain activity.

Formula

C a p i t a l E f f i c i e n c y = T r a n s a c t i o n V o l u m e M a r k e t C a p CapitalEfficiency = \frac{TransactionVolume}{MarketCap}

Interpretation
Higher values indicate active capital use and circulation; lower ones may suggest idle liquidity or speculative holding.

Network Stress Index

Tracks on-chain congestion and transaction backlog pressure using Mempool size, fees, and confirmation delays.

Formula

S t r e s s I n d e x = f ( M e m p o o l S i z e , T x F e e , C o n f i r m a t i o n T i m e ) StressIndex = f(MempoolSize, TxFee, ConfirmationTime)

Signal

  • High stress: potential fee spikes and congestion.

  • Low stress: normal transaction flow and stable conditions.

Available Metrics