What does an active token address mean (differences in token addresses)?

An active token address refers to the address that holds a certain significance within the blockchain system. Since many cryptocurrencies in the market are created using blockchain technology, an “active” address represents a meaningful address within the blockchain system. So, what does an active token address mean? It means that when a user spends a certain amount of time in a decentralized project, they will receive transfers or other information from these users. For example, in a recent project, a video was released on Twitter showing the price difference between Bitcoin and the circulation of this token. Thus, in this process, both addresses account for a significant portion of the total supply of the project.

The difference in token addresses

A token address is a type of encrypted asset with special numerical significance, and the holders can send their tokens to anyone or other entities. These tokens are considered “transferable” as they are usually controlled by specific blockchain protocols and represent different owners, wallets, and private keys (such as Bitcoin).By definition, a token address consists of three main components: the trading platform, smart contracts, decentralized exchanges, and other ownership proofs. Each account has a unique token ID, which is a unique token name, but only those who own the account can view it or verify and authorize it using private keys. These three methods may result in interoperability issues between different addresses.In terms of token types, the ERC20 standard supports ERC721, while ERC1155 is used for the ERC777 standard to allow users to transfer their tokens to another wallet. The difference in token quantity is similar to other functionalities related to the token form, such as transaction fee payment and transaction amount calculation.However, since some tokens are issued by individuals and cannot be used as currencies, they belong to specific entities. For example, when a person buys an NFT, they must have $1, otherwise, they cannot sell the item. If people want to acquire more things, they have to spend less money to have a chance to participate.Additionally, to ensure that every fund in the network circulates effectively, we also need to consider whether the tokens can be stored on-chain. (Cointelegraph)