Weak user counts report "panic selling" for most cryptocurrency tokens: researcher


  Cryptocurrency fire alarm

Last week, cryptocurrency researcher Kevin Rooke questioned the ability of Ethereum and EOS to support decentralized applications (dApps), given the scarcity of users on these blockchains.

Now you are wondering if most of the cryptocurrencies are getting enough use. He recently observed in a tweet that only 27 tokens cptptocurrency had 400 or more active users in a 24-hour period, commenting: "You would think if ever a moment to" buy a tip "or" panic "the sale , "It would be today."

Rooke's tweet generated a barrage of comments, some believing that raised a valid point, but many question the importance of his observation and some questions about the data on which it was based.

Rooke compiled a cryptocurrency index with 400 or more active addresses in a 24-hour period on September 5, as listed on the OnChainFX cryptocurrency research site.

Its index focuses on a metric that reflects the extent to which cryptos are used for transactions, a feature that was one of the main purposes of bitcoin.

And comparing Rooke's index with currencies 24 – its volumes, there was a good deal of matching. Bitcoin and Ethereum have conducted both lists, for example, but there have been some discrepancies.

The user counts against the volume of transactions

The number three on Rooke's index was Dogecoin, with 135,222 active addresses in the 24-hour period. The 24-hour volume of Dogecoin, however, was just under 37 million dollars, lower than that of another 16 encrypted: XRP, Bitcoin Cash, EOS, Stellar, Litecoin, Tether, Cardano, IOTA, Dash, TRON, NEO, Ethereum Classic, Zcash, Ontology, Qtum and Bytom.

The disparity is not based on a comparison between apples and apples, since the Rooke index shows the number of users who make transactions with respect to the volume of transactions. But at the same time, the fact that XRP did not appear on the Rooke index when it represented more than $ 227 million in the 24-hour volume raised questions. According to OnChainFX, XRP showed "no data" for 24-hour active addresses.

Incomplete Data

When a tweeter pointed out that OnChainFX does not show active XRP users, Rooke said that XRP has other missing data and has postulated that some data can not be collected on the XRP register.

BitShares, which closed at $ 9 million in the 24-hour volume, also recorded "no data" for active addresses on OnChainFX and does not appear on Rooke's index. The same was true of Steem, who closed at $ 8 million in the 24-hour volume.

Binance Coin did not even make Rooke's index since it only published 271 active users according to OnChainFX, but represented $ 19.247 million in 24 -hour volume. NEM also failed to make the index, since OnChainFX did not list it at all, while cryopreservation recorded $ 12.563 million in the 24-hour volume.

In contrast, PIVX, ranking number 17 on the Rooke index with 2,971 active users, made only $ 238,709 in 24-hour volume, and Vertcoin, number 18 on the index with 2,336 active users, made $ 241,649 in the 24-hour volume.

Read also: Ethereum and EOS have only 8 dApps combined with over 300 active users

Observers Raise Questions

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The observers have raised further questions about the Twitter index.

One pointed out that KMD had more than 1,000 active addresses for that day. KMD, which was not found in the OnChainFX database, has a market capitalization of $ 127.847 million and over $ 1 million in the 24-hour volume.

Another stated that the list does not contain NX or TUBE and that both have more than 400 active portfolios, demonstrating the incompleteness of Rooke's index. (Neither was found on CoinMarketCap)

One questioned the relevance of the Rooke index since OnChainFX indexes only 107 out of thousands of cryptocurrencies, many of which have active user bases , to which Rooke replied that those on the index include the great cryptosides and claimed that many coins do not even approach the number 400.

An observer suggested that a time span of more than 24 hours could better reflect the # 39 activity of the user.

Another compared to the plethora of cryptocurrencies to all the internet pre-Google search engines.

Images from Shutterstock

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