Less Than 30 Cryptocurrencies Have Over 400 Daily Users Which Could Signal ‘Panic Sell’ For Most Tokens According To A Researcher

Less Than 30 Cryptocurrencies Have Over 400 Daily Users Which Could Signal ‘Panic Sell’ For Most Tokens According To A Researcher

According to a recent study, most of the cryptocurrencies are not used enough. Only 27 cryptocurrency tokens have more than 400 or more active users in a 24-hour period.

Toshi Times covered a story a few weeks ago where the researcher, Kevin Rooke, claimed that Ethereum and EOS combined only supported eight decentralised applications (DApps) with more than 400 active daily users. Rooke’s data was compiled using DappRadar, and he found that Ethereum flaunts five dApps with more than 300 daily users, while EOS only has three apps with over 300 users. Interestingly, although EOS is far newer than Ethereum and holds a significantly lower market valuation, EOS’ most popular dApp has a far higher weekly transaction volume than Ethereum’s leading dApp.

Kevin Rooke research has proven yet another fact, that only 27 cryptocurrency tokens have more than 400 or more active users in a 24-hour period.

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“Only 27 cryptocurrencies had over 400 active addresses today. Yes, 400 users and You’d think if there was ever a time to ‘buy the dip’ or ‘panic sell’ it would be today.” Rooke’s said.

He asks the question if most cryptocurrencies and created an index of cryptocurrencies with 400 or more active addresses in a 24-hour period on Sept. 5, as listed on the OnChainFX cryptocurrency research website. The index focuses on to which extent the different cryptos are used for transactions. He compared the index to the currencies 24-hour volume.

Not very surprising, Ethereum and Bitcoin topped both lists, but there were some surprises. The familiar cryptocurrency Dogecoin have over 135,000 active addresses in the 24-hour period but the volume during the same time was “only” $37 million which was below 16 other cryptocurrencies: XRP, Bitcoin Cash, EOS, Stellar, Litecoin, Tether, Cardano, IOTA, Dash, TRON, NEO, Ethereum Classic, Zcash, Ontology, Qtum and Bytom.

When looking at the list Ripple (XRP) is nowhere to be seen which is due to that OnChainFX shows no active XRP users. Some data cannot be gathered on the XRP ledger. Bitshares and Steem had the same issue, that data was missing which is why they are not on the list.

Binance Coin did not make the list either since it only had 271 active users according to OnChainFX but accounted for $19,247 million in the 24-hour volume. Even NEM did not make the list even though the coin showed a 24-hour volume of $12,5 million.

Even though the research shows that there is little activity in the decentralised applications and only 27 cryptocurrencies show more than 400 active users, the market is fairly new. According to Coinmarketcap.com, the total market capitalisation is less than $200 billion, and the technology is speculative. Countries and companies are researching ways to best use this technology and the fact is that IBM and Alibaba Group are two examples of companies that have applied for almost 100 blockchain patents each. Something is happening!

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