Happy Sunday Tronics in the Forum Trust we all doing good?
I’ve come again with this educational topic to learn.
Let get to you share your opinion and contribution.
Daily Active Users (DAU) and Total Value Locked (TVL) are two important metrics used to measure the health and growth of a blockchain project.
DAU = the number of unique users who interact with a blockchain project on a daily basis. A useful metric used to know the level of interest and engagement in a project.
A high DAU = a project is popular and has a large and active user base.
Let take a look at TRON.
TVL = the total amount of crypto assets locked in a blockchain project. Useful metric used to assess the amount of value that is being held in a project.
A high TVL = a project is trusted and has a large amount of liquidity.
Take a look at NRG by @Stian
Which is better to use?
It depends on what you are trying to measure.
If you are interested in the level of interest and engagement in a project, then DAU is a better metric to use.
If you are interested in the amount of value that is being held in a project, then TVL is a better metric to use.
DAU is a better metric for early-stage projects because early-stage projects are more focused on attracting users and building a community.
TVL is a better metric for more mature projects are more focused on generating revenue and attracting investment.
DAU and TVL are just metrics, and they should not be used as single factor, other factors, such as
- The number of transactions,
- The average transaction value, and
- The growth rate,
When assessing the health and growth of a blockchain project should be checked also.
Let’s not be carried away, another expose is that:-
- DAU can be inflated by bots or fake accounts.
- TVL can be inflated by illiquid assets.
- Both DAU and TVL can be affected by market conditions.
It is important to use DAU and TVL in combination with other metrics to get a more complete picture of the health and growth of a blockchain project.
DAU is a better metric overall, but both are surface-level metrics that don’t tell the whole story. For that, you have to go deeper.
What are the DAU using?
etc… this requires both quantitative and qualitative data. I don’t think enough data analysts, especially those in blockchain use qualitative data enough.
Getting to understanding user engagement, as much you need to look at other factors, such as:
What are the DAU using? Are they simply logging in to check their balance, or are they actually using the platform to make transactions, trade assets, or participate in other activities?
Why are they using the platform? Are they doing it for financial gain, or are they interested in the technology or the community?
How long are they staying on the platform? Are they quickly bouncing off, or are they spending a significant amount of time interacting with it?
What are their pain points? What are the things that are making them frustrated or unhappy with the platform?
What are their suggestions for improvement? What would make them use the platform more often or more effectively?
Example is Our Tron Dao Forum
To answer these questions, you need to collect both quantitative and qualitative data. Quantitative data can tell you things like how many users are active, how often they are using the platform.
#Bro this topic of yours is so educative, indeed you have taken me back to my school days but my bro got some questions for you.
What is the number of transactions.
What is the growth rate and the average transaction value.
What is the TVL and DAU trend over time.
For my understanding the both are very much important metric to consider when evaluating the health and growth of a Blockchain project,if you interested in the level of interest and engagement in any project then DAU is better and it’s also measure the number of unique users who interact with a project on a daily.
But if you are interested in the amount of value that is being held in a project then the mighty TVL is a better metric because it’s measure’s the total amount of crypto asset that is locked in a project.
So for me the both are very important and useful so as long we are dealing with Blockchain project and Crypto.
Thank you buddy,
This question got me feeling like
It’s my project I’m working on my project
Average growth rate simply is calculated by taking the simple arithmetic mean of a series of daily users on a platform, can be in crypto projects, social media, or attendance.
the average growth rate is a useful tool for understanding the performance of investments over time.
Q1. Number of transactions, just numbers of successful recorded transaction, could be digital or traditional.
Lols, trust you understand.
Q3. The Tvl and Dau trend over time varies with conditions around it.
Could be market conditions example.
Launch of new AIRDROP can increase DAU
And, staking to earn massive reward could increase TVL
You are good just want to stress u a little bit
Thanks man for the drill,.
Do you think daily Active users can be useful in
Out of Crypto project?
Like school or website or blogs?
Bro DAU can be useful in project outside of crypto,the DAU can be use in the tracking of students engagement with online learning platform,it can also be used in the tracking of website traffic,and it can also be used in tracking blog readership and in identifying which post are most popular.
Very brilliant, very applicable to real life tool.
Example could be use to make attendance of students
Thanks for bringing this up and I strongly believe this isn’t brought up and/or discussed enough. You did a good job providing a comprehensive analysis of the metrics Daily Active Users (DAU) and Total Value Locked (TVL) in the context of blockchain projects.
I do believe the choice of metric depends on your objective: DAU is more suitable for early-stage projects focused on community building, whereas TVL is better for mature projects aiming to generate revenue and attract investment.
Thanks for Your contribution, yes, with active users this and every other topic can we discussed well enough.