Kevin Rooke, a cryptocurrency commentator, has suggested your vast majority of altcoins are nearly inactive. Rooke’s observation is in data of your market aggregator OnChainFx:
Forget about dApps minus the users, let's go over tokens without having users.
Only 27 cryptocurrencies had over 400 active addresses today. Yes. 400 users.
You'd think if there would be ever the perfect opportunity to 'pick the dip' or 'panic sell' it would be today. pic.twitter.com/l1INETwawj
— Kevin Rooke September 6, 2019
The site measures the active addresses of various cryptocurrencies. This statistic is defined as “the number of unique addresses that participated in a transaction at any time during the past 24hrs.”
One commenter notes that low active wallet numbers may be due to people storing coins on exchanges. Even as it is possible that exchange users may hold some cryptos for very long enough to customise the data, another commenter suggests that “leaving crypto in the exchange is not really using it.”
In simple terms, exchange wallets that happen to be used to store crypto may not be considered to have active addresses, simply as a personal wallet currently in use to store cryptocurrency couldn’t survive considered to have active addresses.
Other commenters keep in mind that a lot of information and facts are missing: active address stats for major coins for instance Ripple, which has an $11 billion market cap, are usually not measured by OnChainFx. Rooke argues that OnChainFx covers “almost all the big ones,” but, in all reality, the site only counts active addresses for 62 from the 107 coins it does cover.
Finally, token activity really should not confused with overall platform activity. Some tokens have very few active addresses if their platform uses multiple tokens. As an example, the prediction market Augur has about 300 active addresses with its REP token. However, the platform mainly uses ETH tokens in bets, while its REP tokens are simply just occasionally useful to create markets and dispute outcomes.
Do the Numbers Mean Anything?
Although OnChainFx just isn’t comprehensive, it is doing collect very particular data for that coins it covers. OnChainFx, joined with individual block explorers, will offer a complete picture of how many people are using various altcoins.
Although Rooke’s conclusion is dubious, which numbers alone usually are not a reason to declare minor tokens dead, the statistic is definitely a useful one. Some coins do have a low range of active addresses by measure.