What are deposits or deposit addresses?
When you transfer coins to an exchange, 2 transactions occur:
- From the user wallet to a temporary wallet, created by an exchange
- From the temporary wallet to the main exchange wallet
We call these temporary wallets deposits or deposit addresses.
All coins that enter exchange wallets go through deposit addresses first, making deposits a strong proxy for the overall level of speculative interest in a token.
Daily active deposits (DAD) shows the number of unique deposit addresses that have been active on a particular day.
For example, we can see a massive spike in daily active deposits on January 15th as the price of REP began to rally, followed by a notable plunge several days later.
