> Index Methodology

Technical documentation: calculation pipeline, normalization, and weighting system.

> Overview

The Blockchain Value Index (BVI) is a composite metric designed to measure and compare the daily activity and economic value of different EVM-compatible blockchain networks. Unlike market cap or TVL alone, this index combines multiple on-chain metrics to provide a holistic view of network health, usage, and economic activity.

Key Principles

7-Day Smoothing: Raw metrics smoothed before normalization to reduce weekend volatility
Rolling Global Anchors: Metrics scored against EMA-smoothed ecosystem maximums that adapt over time
Cube Root Scaling: Better score separation than logarithmic — small chains differentiated from large
Economic Value Focus: 35% weight on revenue, DEX volume, and stablecoin flows
Anti-Spike Protection: Prevents sudden value spikes from distorting scores
Signed Metrics: Properly handles negative values (stablecoin outflows)
Dynamic Weight Redistribution: Missing metrics don't penalize chains unfairly

> Calculation Pipeline

The index calculation follows a 4-step pipeline that transforms raw blockchain metrics into a comparable 0-100 score:

Data Collection

Raw metrics are collected daily from multiple data sources:

Routescan API: On-chain transaction data, smart contracts, addresses, gas usage, burned fees
DeFiLlama API: TVL, stablecoin market cap, stablecoin inflows, DEX volume
CoinGecko API: Native token prices for revenue calculation

7-Day Smoothing

Raw metrics are smoothed before normalization to reduce weekend volatility and day-to-day noise. This eliminates the "jagged" chart effect caused by regular weekly dips.

Smoothing Methods

Activity Metrics: 7-day Simple Moving Average (SMA)
smoothed = (day1 + day2 + ... + day7) / 7
Flow Metrics (Stablecoin Inflow): 7-day Rolling Sum
smoothed = day1 + day2 + ... + day7
Captures net weekly capital flow rather than averaging it out

Cube Root Normalization

Each smoothed metric is scored against a rolling anchor using cube root scaling. This provides better score differentiation than logarithmic scaling — small chains are clearly distinguished from large chains instead of being compressed together.

score = (value^0.33 / anchor^0.33) × 100

A score of 100 means the chain matches the current ecosystem benchmark for that metric. Scores can exceed 100 for exceptional performance, but are capped at 100 for final index calculation.

Why Cube Root Instead of Logarithmic?

Logarithmic scaling (ln(1+x)) compresses large values too aggressively, making chains with vastly different activity levels appear similar. Cube root provides:

Better separation: A chain with 10x activity gets ~2.15x the score (not ~1.1x)
Less clustering: Small, medium, and large chains have distinct score bands
More intuitive: Score differences reflect meaningful activity differences

How Rolling Anchors Work

Instead of fixed benchmarks, anchors are calculated dynamically:

Daily Maximum: max[m,t] = highest value for metric m across all chains on day t
EMA Smoothing: anchor = α × max + (1-α) × previous_anchor, where α = 2/(365+1)
Anti-Spike Protection: anchor ≤ 1.5 × previous_anchor (prevents manipulation)

This means anchors gradually adapt to ecosystem growth while remaining stable day-to-day.

Signed Metrics (Stablecoin Flows)

For metrics that can be negative (like stablecoin outflows), we preserve the sign:

score = sign(value) × (|value|^0.33 / anchor^0.33) × 100

Outflows produce negative scores, reflecting capital leaving the chain.

Weighted Aggregation

Normalized scores (0-1) are combined using a weighted sum based on metric importance:

index = Σ (normalized_score × weight) × 100

The final score is scaled to 0-100 for readability. A score of 100 would mean the chain meets or exceeds all benchmarks across all metrics.

> Rolling Anchor System

Unlike fixed benchmarks, the Rolling Global Anchor system adapts to ecosystem activity levels over time using exponential moving average (EMA) smoothing.

EMA Parameters

Window: 365 days
Alpha (α): 2 / (365 + 1) ≈ 0.00546
Spike Limit: 1.5× (max 50% daily increase)

7-Day Smoothing

Activity: 7-day SMA
Flows: 7-day Rolling Sum
Effect: Removes weekend dips

Benefits

Adapts to ecosystem growth
Resistant to manipulation
Stable day-to-day scoring
No manual benchmark tuning

# 7-day smoothing (pre-processing) smoothed_value = SMA(last 7 days) # or Rolling Sum for flows # Daily ecosystem maximum max[m, t] = max over all chains c of smoothed_value[c, m, t] # EMA-smoothed anchor raw_anchor = α × max[m, t] + (1 - α) × anchor[m, t-1] # Anti-spike protection anchor[m, t] = min(raw_anchor, 1.5 × anchor[m, t-1]) # Cube root normalization score = (smoothed_value^0.33 / anchor^0.33) × 100

The 365-day EMA window means anchors respond slowly to changes, providing stable scoring while still adapting to long-term ecosystem trends. The 1.5× spike limit prevents sudden value spikes (e.g., from airdrop farming) from artificially raising anchors. The 7-day smoothing eliminates weekend volatility for a cleaner chart.

> Metrics & Weights

The index uses 17 daily metrics organized into 4 groups. The weighting prioritizes economic value over pure activity metrics.

A. Economic Value

35%

Measures actual economic activity and value creation on the network

Metric	Weight	Source
Network Revenue (USD)gas_used × avg_gas_price × native_token_price	15%	Calculated
DEX Volume (24h)	10%	DeFiLlama
Net Stablecoin InflowDay-over-day change in stablecoin supply	5%	DeFiLlama
Burned Fees	5%	Routescan

B. User Activity

25%

Measures unique user engagement and network adoption

Metric	Weight	Source
Daily Active Senders	8%	Routescan
Daily Active Receivers	5%	Routescan
Daily Unique Addresses	4%	Routescan
Daily Transactions	8%	Routescan

C. Token Economy

20%

Measures token movement, DeFi activity, and liquidity

Metric	Weight	Source
ERC-20 Transfers	6%	Routescan
ERC-721 Transfers (NFTs)	4%	Routescan
ERC-1155 Transfers	3%	Routescan
Total Value Locked (TVL)	4%	DeFiLlama
Stablecoin Market Cap	3%	DeFiLlama

D. Developer & Technical

20%

Measures developer activity, network utilization, and technical health

Metric	Weight	Source
Daily Gas Used	6%	Routescan
Contracts Deployed	5%	Routescan
Verified Contracts	5%	Routescan
Internal Operations	4%	Routescan

Note: When metrics are missing or unavailable, their weight is dynamically redistributed to available metrics to ensure fair scoring.

> Network Revenue Calculation

Network Revenue is a composite metric that measures the total USD value of transaction fees paid by users. It's calculated by combining on-chain gas data with native token prices:

revenue_native = (gas_used × avg_gas_price_wei) / 10^18 revenue_usd = revenue_native × native_token_price_usd

This metric captures actual economic value generated by the network and is weighted heavily (15%) because it represents real demand for blockspace.

> Dynamic Weight Redistribution

Not all chains have data for all metrics. Instead of penalizing chains with missing data, the index redistributes the missing weight proportionally:

scale_factor = expected_total_weight / actual_weight_used adjusted_score = raw_score × scale_factor

Example: If a chain only has 80% of metrics available, scores are scaled up by 1.25× (100/80) so it can still reach a maximum of 100 if it meets benchmarks in all available metrics.

> Monthly Index (30-Day Average)

The Monthly Index is a 30-day simple moving average of the Daily Index:

monthly_index = (Σ daily_index[last 30 days]) / 30

This smooths out daily volatility and shows longer-term trends in network activity.

> Data Sources

Routescan

10 metrics

On-chain aggregation data for EVM networks: transactions, transfers, contracts, addresses, gas metrics.

https://routescan.io →

DeFiLlama

4 metrics

TVL, stablecoin data, and DEX volume aggregated across all protocols on each chain.

https://defillama.com →

CoinGecko

1 metrics

Real-time native token prices (ETH, AVAX, CHZ, FLR) for revenue calculation.

https://coingecko.com →

> Supported Chains

EthereumETH

ArbitrumETH

OptimismETH

BaseETH

AvalancheAVAX

ChilizCHZ

FlareFLR

> Limitations & Considerations

⚠
Anchor initialization:
New metrics start with anchors based on the first day's maximum. It takes time for the EMA to stabilize. We recommend at least 90 days of historical data for meaningful anchor values.
⚠
Current token prices:
Revenue calculation uses current token prices, not historical. This means historical revenue values are approximations.
⚠
Spam transactions:
The index doesn't filter spam or wash trading, which could inflate metrics. However, the anti-spike protection limits the impact on anchors.
⚠
DEX volume availability:
DEX volume data may not be available for all chains or may have reporting delays.
⚠
Negative inflows:
Stablecoin outflows (negative inflows) produce negative scores for that metric using signed cube root normalization, reflecting capital leaving the chain.
⚠
7-day smoothing delay:
The 7-day smoothing means each day's score reflects the average of the past week, not just that day. Sudden changes take a week to fully reflect in the index.
⚠
Relative scoring:
Because anchors are based on ecosystem maximums, scores are relative to the best-performing chain for each metric. A score of 100 means matching the ecosystem leader (smoothed over time).