# Arbitrum One Active addresses (daily) Methodology

## 1. Overview

The Arbitrum active addresses daily metric measures the number of unique wallet addresses that initiated at least one transaction on the Arbitrum blockchain each day. This metric serves as a key indicator of daily user activity and adoption on the Arbitrum Layer 2 network. The calculation uses HyperLogLog algorithms for efficient approximate distinct counting of transaction senders, enabling scalable computation across large transaction volumes.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Arbitrum transaction records**: Complete transaction history from the Arbitrum blockchain including timestamps, sender addresses, recipient addresses, gas usage, and transaction metadata
- **Chain availability data**: Data quality and availability windows for the Arbitrum network to ensure accurate metric reporting
- **Token metadata**: Contract address information for WETH and other reference tokens on Arbitrum

## 3. Step-by-step calculation

### Component A: Transaction extraction and user identification
- **Purpose**: Extract all Arbitrum transactions and identify unique daily transaction senders
- **Logic**: Retrieve all transactions from Arbitrum blockchain records, focusing on the `from_address` field which represents the transaction initiator. Each transaction includes `block_timestamp`, `transaction_hash`, `from_address`, `to_address`, and gas-related fields. The `from_address` serves as the unique identifier for active addresses, as these are the addresses that actively initiated blockchain activity
- **Key fields**: `block_timestamp` for timing, `from_address` as the active address identifier, `transaction_hash` for uniqueness, gas pricing and usage amounts for related fee calculations

### Component B: Daily aggregation with HyperLogLog
- **Purpose**: Group transactions by day and create efficient data structures for counting unique addresses
- **Logic**: Truncate `block_timestamp` to daily boundaries using day-level granularity. For each day, initialize HyperLogLog sketches with precision parameter 15 for each unique `from_address`. This creates approximate distinct counting structures that can be efficiently merged and aggregated. Users are classified as 'Transaction sender' type to distinguish from other potential user classifications in the broader system
- **Key fields**: Daily truncated `timestamp`, `timestamp_grain` set to 'day', `user_type` as 'Transaction sender', `user_dau` containing the address identifier for HLL processing

### Component C: Dimensional breakdown aggregation  
- **Purpose**: Create multiple dimensional views of the daily active address counts
- **Logic**: Merge HyperLogLog sketches across different dimensional breakdowns while preserving the ability to count unique addresses. Create separate aggregations for project-level metrics (project_dbt_tag dimension), chain-level metrics (chain dimension), user-type breakdowns, and product-level breakdowns. Each breakdown merges the daily HLL sketches and extracts the final approximate distinct count of unique addresses. Null values are used for non-applicable dimensional fields in each breakdown
- **Key fields**: `dimensions` field indicating the breakdown type, `chain_id` for chain-specific counts, `user_dau` containing the extracted unique address count from merged HLL sketches

### Component D: Metric finalization and naming
- **Purpose**: Convert user DAU metric to active addresses daily metric with proper time series handling
- **Logic**: Select records where `dimensions` equals 'chain' or 'project_dbt_tag' to focus on the primary dimensional breakdowns. Rename the `user_dau` field to `active_addresses_daily` to reflect the blockchain-specific context where daily active users are conceptually equivalent to daily active addresses. Apply the finalize metric macro with 'fill_zeros' strategy to ensure complete time series with zero values for days with no activity
- **Key fields**: `active_addresses_daily` as the final metric value, `timestamp` for daily boundaries, `dimensions` and `chain_id` for dimensional context

### Final aggregation
- **Combining components**: The final metric represents the count of unique wallet addresses that initiated at least one transaction on Arbitrum for each day, calculated using HyperLogLog approximate distinct counting for scalability
- **Currency conversion**: Not applicable for address counting metrics
- **Time aggregation**: Daily boundaries are established by truncating transaction timestamps to day level, with missing days filled with zero values to maintain complete time series
- **Final calculation**: The `active_addresses_daily` value represents the approximate distinct count of unique `from_address` values that appeared in Arbitrum transactions during each calendar day, filtered for chain availability windows and presented across multiple dimensional breakdowns

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Unique active addresses over a fixed 24-hour window.

Active addresses (daily)

Arbitrum One

Arbitrum One batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Arbitrum One is an L2 smart contract platform for decentralized applications on Ethereum. Arbitrum was founded by Offchain Labs and launched in 2021.

ARB tokenholders own and govern the protocol. They currently run the only sequencer and take a cut of the total transaction fees paid by users (revenue). Arbitrum’s investors include Polychain, Alameda Research, Coinbase Ventures, etc.

Arbitrum OneARB

Active addresses (daily)

Active addresses (daily)

Competitive landscape

Chain breakdown