Our goal at Flipside Crypto is to provide blockchain projects with the right analytics to grow. We currently ingest data from 50+ blockchain full nodes and standardize that data in order to effectively compare hundreds of crypto projects. As such, we’ve come to finetune the criteria that will determine a project’s success.
No blockchain organization can be successful in the long term with only project-backed incentives. There needs to be real activity coming from elsewhere.
In this report we dive into the 5 questions you need to consider, in order to assess whether a project is worth paying attention to.
Several blockchain projects are already tracking these and making them public through Community Consoles.
1. Is the number of active accounts growing?
Total active accounts, taken from the Algorand Community Console.
Active accounts are accounts that have received or sent an asset within a select date range. They are responsible for the transactions happening on the platform, and as such, for the fees generated.
Being able to compare the number of total accounts to how many are staying active, is key to assessing user retention. A blockchain platform with an increasing number of dormant accounts is not going to drive revenue.
Spikes in activity will also reveal which actions or events caused users to transact more on a certain day. Understanding this impact will help blockchain organizations make better informed decisions to drive growth.
Illustrated above is Algorand’s on-chain data from its Community Console. Algorand tracks its chain’s daily count of existing accounts, active accounts and new accounts.
2. How much are users willing to pay to transact?
Average daily fees paid in KRT , taken from the Terra Community Console.
Fees collected daily are a valuable indicator for how much people are willing to pay to use a crypto project. The metric is more valuable if broken down per type of transaction, i.e. how much are users spending to move the native token vs. to deploy applications vs. to use a dApp that exists on the platform.
And for layer 2 projects – what portion of the layer 1 fees were generated by the layer 2 application.
The Terra blockchain tracks average daily fees generated by transactions of its native token, LUNA, as well as its set of stablecoins. Illustrated above are the daily fees generated by the KRT stablecoin, which is pegged to the Korean Won and collected the most daily fees of any other stablecoin on the Terra blockchain so far.
3. Are there dApps with monthly active users?
dApp activity taken from the Near Community Console
The first step is figuring out if there are dApps built on the blockchain platform. The second, is to see if anyone is using them. Good quality dApps will attract users who will want to transact on your platform and pay fees to do so.
Illustrated above is NEAR’s on-chain data as displayed on their Community Console. NEAR tracks which dApps on its platform are collecting the most amount of fees, generating the most transactions, and attracting the most users. Comparative analysis is provided on the top dApps to visualize the most active and fee generating application on NEAR over the last six months.
4. How active is the developer community?
Chainlink’s Developer Behavior taken from the FCAS Tracker.