Leading Blockchains with the Largest Daily Active Users (DAUs)
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Cryptocurrency investors consider DAUs to be akin to a customer base. When DAUs are robust or showing significant growth, it signifies a “company” in expansion mode, possibly presenting an appealing investment opportunity. Conversely, if DAUs are dwindling or on a steady decline over an extended period, it’s likely not a prudent choice for your financial resources.
What Are Daily Active Users?
Daily Active Users (DAUs) serve as a metric mirroring the count of distinct public addresses engaging in transactions within a blockchain on a daily basis. This metric holds the power to reveal substantial insights into the overall vitality of a blockchain ecosystem.
Similar to the dynamics observed in social media networks, blockchains exhibit network effects. In essence, the more individuals participate in blockchain activities, the more valuable and functional the blockchain becomes. Consequently, when one observes a blockchain boasting a substantial DAU count, it sends a robust signal, suggesting that it could be an enticing investment prospect. This signal gains further strength when the DAU count exhibits steady growth over time.
In essence, monitoring DAUs offers a valuable glimpse into the health and potential of a blockchain, making it a significant consideration for investors and enthusiasts alike.
Top Three Blockchains Ranked by DAUs
As some blockchains are bigger than others, it implies that they are in their DAUs as well. Here are some blockchains with the largest daily active users:
Tron
DAU (Sept. 2023): 1,637,200
Tron, established in 2017 by Justin Sun, is a prominent public blockchain that originally aimed to provide an Ethereum alternative tailored for the Asian market. This vision has translated into remarkable success, currently ranking as the 10th largest blockchain with a market capitalization surpassing $7.5 billion. Its robust support for dapps has propelled Tron into the upper echelons of the decentralized finance (DeFi) ecosystem, with its dapps contributing to over 15% of the total value locked (TVL) in DeFi.
One of Tron’s standout achievements is its colossal Daily Active User (DAU) base, numbering over 1.7 million users, the largest among blockchain networks. While the DAU metric doesn’t exert a direct influence on Tron’s trading volume and revenue, it plays a pivotal role in sustaining the overall health and vibrancy of the Tron ecosystem.
BNB Chain
DAU (Sept. 2023): 1,095,48
Notably, BNB has secured its position as the fourth-largest cryptocurrency, boasting a substantial market capitalization exceeding $32 billion. This impressive market cap owes much of its strength to BNB’s utility on the Binance platform, where it offers users attractive perks and fee discounts.
The inception of Binance Chain occurred in 2020, marked by the introduction of the native token, BNB. Subsequently, in 2021, BSC was launched to tap into the thriving DeFi landscape. BSC has gained acclaim for its user-friendly design, compatibility with the Ethereum Virtual Machine (EVM), and cost-effective transaction fees.
BNB Chain currently boasts a Daily Active User (DAU) count surpassing 935,000, although this figure reflects a 20% decrease compared to the preceding month. However, a noteworthy milestone was achieved in October 2022, when BNB Chain registered over 2.1 million DAUs.
NEAR Protocol
DAU (Sept. 2023): 706,407
In 2017, NEAR Protocol emerged as a Proof of Stake (PoS) blockchain, notable for its unwavering commitment to scalability and offering swift transaction speeds at remarkably low costs.
Curiously, despite its hosting of a relatively modest number of decentralized applications (dapps, approximately 200), NEAR Protocol experienced an astonishing surge in its Daily Active User (DAU) metric at the close of August, propelling it to the upper echelons of the most widely adopted blockchain networks. The precise catalyst behind this substantial uptick in users remains an enigma. Presently, NEAR boasts a DAU count hovering near 700,000, marking a sevenfold increase from a year ago.
With a market capitalization of $1 billion, NEAR Protocol secures the 40th spot among the largest cryptocurrencies in the market. NEAR’s distinctive blend of scalability, user engagement, and unexpected surge underscores its burgeoning significance within the blockchain landscape.
What Are the Advantages of DAUs for Crypto Projects
A high DAU figure should be the goal of any blockchain network: it means more users driving the ecosystem, with more growth and wealth generation potential. Generally, more users also mean a network with many nodes, meaning it’s more secure and decentralized.
Problems and Considerations
A substantial user base is advantageous for any blockchain, although with growth comes inevitable challenges. In practice, heightened activity necessitates enhanced scalability, prompting blockchain developers to prioritize transaction speed and reduced fees. However, it’s worth noting that achieving greater scalability can sometimes lead to diminished decentralization, which poses another set of challenges. Typically, blockchains aim to strike a delicate equilibrium among decentralization, scalability, and security, often referred to as the “blockchain trilemma.”
Conclusion
Daily Active Users (DAUs) assume a pivotal role in assessing the vitality and expansion potential of blockchain investments. It frequently serves as a barometer for gauging a blockchain ecosystem’s growth path and its potential for widespread adoption. Nevertheless, investors should exercise prudent scrutiny when interpreting this data, as it aids in distinguishing between a genuinely promising project and one merely riding the wave of hype.
