The plausibility of use cases for many cryptocurrencies has been analyzed as significant barriers or gateways to their adoption. Onchainfx provides some interesting insights into the actual usage of cryptocurrencies with its “daily active addresses” metric.
Notably, identified yesterday is the concerning lack of actual users of many cryptocurrencies over the previous 48 hours.
OnChainFX Insights and Trends
According to Onchainfx, only 27 cryptocurrencies yesterday had a 24-hour volume of daily active addresses of more than 400. Today, that number sits at 1 less at only 26 cryptocurrencies with more than 400 daily active addresses in the last 24 hours.
Daily active addresses — as an on-chain metric — is defined as the number of unique addresses sending or receiving the native cryptocurrency of that specific network over a given period. A qualifier of this metric that needs to be made; however, is that most large exchanges use 1 address, so it does not accurately take into account the trading of a specific token. Conversely, trading — depending upon your definition of ‘usage’ — does not really represent the expected use case of most cryptocurrencies.
Unsurprisingly, Bitcoin and Ethereum sit at first and second in the number of daily active addresses, respectively. Further, other cryptocurrencies with clearly established network effects and practical applications including Monero (privacy) and EOS (scalable dapps) also are in the top 10.
Dogecoin makes a surprise appearance at fourth on the list with more than 72,000 daily active addresses in the last 24 hours. Although bizarre considering Dogecoin’s initial existence as a meme and joke, there may be some broader trends at work when analyzing Dogecoin’s usage.
Dogecoin Usage Remains Resilient
Dogecoin has already made recent headlines with its unexpected surge of more than 41 percent over the course of Saturday, September 1st. The surge was a continued bull run by Dogecoin that started two days earlier and continued through Friday, surging more than 60 percent against the USD.
The resiliency and recent surge of Dogecoin are primarily attributed to its upcoming Dogethereum demo for its integration with Ethereum. Stemming from its successful Truebit-driven bridge to Ethereum earlier this year on the Rinkeby Testnet, Dogecoin has seemingly become a sort of testing network for cryptocurrency network developments.
Moreover, Dogecoin is closely tied to Litecoin, which it merge-mines with, providing it with sufficient hash power to remain a relatively secure PoW cryptocurrency. Dogecoin is also widely available on many cryptocurrency exchanges including Poloniex, Bittrex, and HitBTC. Further, Dogecoin was also recently made available on both Yahoo Finance’s new cryptocurrency exchange listings and the Robinhood trading app.
Dogecoin maintains an interesting position in the cryptocurrency realm with its established network effects and stable base of followers. Its surprising existence near the top of its daily active addresses can simply also be contributed to people’s undying love for Internet memes and jokes.
The metrics provided by Onchainfx demonstrate some concerning levels of usage for many cryptocurrencies outside of the top 25. Ultimately this may be attributed to declining levels of excitement around cryptocurrencies in the current bear market or nascent development stages of many platforms. If anything, Dogecoin seems to consistently remain resilient in the face of everything.