CandleFocus

The fallacy of daily active addresses

Author: Content Editor
The 0xResearch newsletter on Blockworks.co discusses the problems with using certain metrics to analyze blockchain activity. The article highlights the issues with using active addresses as a measure of a protocol's value, citing examples of spam and bot activity. Instead, the author suggests looking at network fee metrics to gauge blockchain activity. The article also discusses the concept of blockchain profitability, noting that treating token issuance as a cost item may not accurately reflect the benefits of staking on a proof-of-stake chain. The author proposes using the metric of real economic value (REV) instead. Additionally, the article discusses the limitations of the total value secured (TVS) metric for comparing oracle providers and suggests using total transaction value (TTV) instead. Finally, the article mentions that Ethereum's blob data is nearing its target limit, which could have implications for L2 rollups.

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