Consider a wallet address as an engine. The productivity of an engine is measured based on its efficiency ratio - the output to input. If the output surpasses the input, the engine is productive.
Similarly, wallet addresses can be viewed as units of economic productivity. One way to measure the productivity of a wallet address is by examining "Net flows".
Net flows are calculated as the difference between the outflows and inflows for a given portfolio. Outflows refer to all asset transactions leaving the address, while inflows represent the opposite.
It’s crucial to understand that inflows and outflows may appear inflated if the same funds have circulated in and out of a single wallet multiple times. This is normal, and net flows provide an accurate representation of the situation.
You have the option to filter the chart based on various time periods: 5 years, 4 years, 3 years, 2 years, 1 year, 6 months, 1 month, 1 week, 1 day, and so on. You can also filter the chart by specific blockchain networks ("chains") or by specific assets.
By clicking on the toggle, you can view detailed asset breakdowns. This function is crucial when analyzing the historical performance of a portfolio.