Recently, a renowned crypto researcher, Kevin Rooke raised questions on the capacity of Ethereum and EOS to back decentralized apps (dApps), considering the scarcity of users on those blockchains. He tweeted that just 27 crypto tokens had registered at least 400 active users in a single day: “You’d think if a time to ’buy the dip’ or ‘panic the sell,’ it would be today.”
The researcher gathered an index of digital currencies with at least 400 active users in a single day on 5th September, as highlighted on the OnChainFX crypto site. His index was based on a metric that mirrors the range to which cryptocurrencies are applied for businesses.
After analysing Rooke’s index to the cryptocurrencies’ one-day market volumes, a reasonable quantity of correspondence was evident. BTC and ETH championed both lists, although there were some inconsistencies.
User Counts Against Transaction Volume
Dogecoin was ranked third on Rooke’s index, with 135,22 active users in a single day. Nevertheless, Dogecoin’s one-day transaction volume was averagely $37 million, less than that of 16 other cryptocurrencies.
The difference is not grounded on an “apples to apples” assessment, as Rooke’s index indicates the number of active addresses conducting operations compared to transaction volume.
The Worry of Incomplete Data
One tweep observed that OnChainFX lacked active XRP users, but Rooke replied by stating that Ripple was experiencing issues of missing data and that it was impossible to collect some of the information from the Ripple ledger.
Besides, Bitshares that registered a transaction volume of almost $9 million in one day, also lacked information about its active users on OnChainFX and was not listed on Rooke’s index. A similar case was reported for Steem that transacted approximately $8 million within 24 hours. Binance Coin and NEM were also not listed on Rooke’s index.
The suggestion that Rooke ought to have Considered
One tweet felt that a time frame longer than one day can mirror better user operations.