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DappRadar Explains DAU Count In The Case Of Decentraland

Crypto Twitter was taken aback by rumors that Decentraland, a $1.2 billion metaverse ecosystem, reportedly had less than 40 daily active users. The statistics, provided by decentralized finance (DeFi) analysis company DappRadar, caused quite a stir in the crypto world, with concerns voiced about the future of Web3.

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DappRadar has recently addressed how they arrived at that figure and stated that they are actively working with the metaverse platform to provide a more accurate data collection.

According to the data analytics company, it monitors the number of Unique Active Wallets (UAW), the number of transactions, and the amount of those transactions across various decentralized apps (dApps).

DappRadar observed that their user data tool only records users’ interactions with a blockchain, often transactions, while non-blockchain-based activity frequently goes unnoticed. Axie Infinity, for example, has well over 100,000 daily active users, yet DappRadar only counts 20,000 UAW each day using on-chain data.

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The DeFi analytic business admitted that the Metaverse is a rapidly expanding ecosystem that relies entirely on developer data for computations. The company is currently collaborating with Decentraland engineers to have a deeper understanding of the platform’s daily active users. The company said:

“The development of metaverse worlds is fast moving, as more users and brands find their way into this virtual universe. The key metrics DappRadar provides are based on smart contracts, which are mainly submitted by dApp developers. The Decentraland team is currently updating their list of smart contracts and we’re therefore recalculating their metrics.”

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While DappRadar user statistics may be inaccurate, there appears to be a fall in interest in Web3 ecosystems, including the much-touted Metaverse. In the present bad market, even the most thriving projects are suffering extraordinary difficulties.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.