The crypto industry is currently focused too much on metrics like transaction volumes and token prices, which don't provide a clear picture of user engagement and growth potential. To address this, a new approach is proposed that categorizes user behaviors into five core categories and combines them using a Bayesian model to generate a single score. This approach provides insights into the user activity of different chains. Surprising findings include a decline in engagement quality for Solana despite price and trading volume spikes, low user score for Ethereum despite bullish developments, and Axelar having the most active users across a broad range of activities. However, comparing scores across chains is not valuable as each score is proportional to the user quality of its respective chain. The user quality track records of different chains suggest that Solana faces challenges and opportunities, Axelar needs to upscale its ecosystem without diluting user quality, and Ethereum's activity may consolidate around core features. Scoring systems need to prioritize the specific actions relevant to each chain and measure user quality in a multivariate manner. Incorporating new scoring methods can provide meaningful insights to investors and drive user engagement and value creation in the Web3 industry.
- Content Editor ( coindesk.com )
- 2024-12-23
What the Key Metrics for Onchain Activity Say About SOL, ETH and Other Chains in 2025