Decentraland Has Less Than 50 Active Users Despite a $1.2 Billion Valuation, The Sandbox Just 1
Metaverse platform Decentraland has less than 50 daily active user (DAU) despite a market cap of around $1.2 billion.
According to data by DappRadar, Decentraland had only 42 active users over the past day, with a total of 114 transactions and a $531 volume.
The sharp decline in Decentraland’s popularity comes despite the fact that its native token, MANA, has a market cap of $1.2 billion and currently ranks the 42th largest cryptocurrency by market cap.
Notably, things are even worse with Decentraland’s main rival The Sandbox, which had just one active user over the past 24 hours.
Decentraland and The Sandbox are Lonely These Days
Looking at two of the largest metaverse platforms with valuations of more than $1 billion, one data point suggests that users may not be coming back every day.
It is important to note that an active user, according to DappRadar, is defined as the interaction of a unique wallet address with the platform’s smart contract.
For example, logging into The Sandbox or Decentraland to make a purchase with SAND or MANA, each platform’s respective native utility token, is counted as “active use.”
This means that DappRadar’s compilation of daily “active users” doesn’t count people who simply log in and interact with other users on a metaverse platform or briefly attend an event, such as a virtual fashion week.
It may also mean that fewer transactions, such as buying or selling a non-fungible token (NFT), take place on these platforms than the number of people who visit them.
The most daily “active users” on Decentraland was 675, according to DappRadar. For The Sandbox, that number was higher, around 4,503.
DappRadar Details How it Accumulates Data
Blockchain data provider DappRadar published a blog post on Tuesday describing how it calculates its data for the number of “active” users interacting with decentralized applications (dapps), including the Decentraland metaverse platform.
DappRadar said that it tracks the number of unique active wallets (UAWs), the number of transactions, and the volume of those transactions across different dapps. It does this by tracking “blockchain unalterable decentralized application data, providing verifiable information for all its users.”
For example, when tracking the number of transactions to or from a smart contract, that data point is tracked live on the blockchain.
“It is important to note that the data on the blockchain cannot be changed and therefore does not lie,” the post said. “However, this data does not always mean the same thing for each dapp. Also, blockchain data doesn’t always paint the full picture.”
He went on to explain that a standard metric he uses for his DappRadar rankings is “Unique Active Wallets,” which shows dapps with “the most user wallets interacting with them.”
“DappRadar’s tooltip describes UAW or user data as the ‘number of unique wallet addresses that interact with a dapp’s smart contracts’. Thus, to be counted by DappRadar, a user must perform a block chain transaction.
He noted that any dapp activity outside of the blockchain ecosystem is generally not tracked, which could explain discrepancies between his measurements and measurements reported by dapps themselves.
Specifically, he noted that the key metrics he provides for metaverse worlds are based on smart contracts, “which are primarily submitted by dapp developers.”
“The Decentraland team is currently updating their list of smart contracts and therefore we are recalculating their metrics,” he added. “Dapp developers can claim ownership of their presence on DappRadar and provide all the necessary smart contracts to properly track their project.”
DappRadar’s statement follows a recent report from CoinDesk, which shares platform data, which suggested that Decentraland had just 38 “active users” last Friday.
Since then, Decentraland has said it sees an average of 8,000 “daily active users,” questioning other data measurements for “daily active users.”
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