Better Use of Blockchain Metrics
Oct 22, 2024 pm 12:12 PM
Blockchains generate a vast amount of public data. On Crypto Twitter, people constantly compare Blockchain A and Blockchain B, and investors, researchers, and opinion leaders (KOLs) have many metrics to reference when defending their viewpoints. However, the misuse of these numbers often obscures people's understanding of the field.
Blockchains generate a vast amount of public data. On Crypto Twitter, people constantly compare Blockchain A and Blockchain B, and investors, researchers, and opinion leaders (KOLs) have many metrics to reference when defending their viewpoints. However, the misuse of these numbers often obscures people's understanding of the field.
In today's 0xResearch article, we will explore three metrics and the issues surrounding them: active addresses, blockchain "profitability," and total value secured.
Active Addresses
"Active addresses" refer to how many active, paying users there are on a particular protocol.
"The Facebook has three billion monthly active users" is useful information that tells us something about this social network. Since spammers do not have enough profit opportunities to flood Facebook, active addresses are a good way to assess the platform's real value to consumers.
However for blockchains, the value of active addresses diminishes due to the ease of creating new wallets and the obvious opportunities to profit through airdrops or protocols.
For example, the following chart shows a clear case: Solana had the most daily active addresses in the past month, making it appear very active.
Most Solana users trade on decentralized exchanges (DEXs), so we need to closely observe the activity on DEXs. When we delve into the active addresses on Solana's DEX, we find that in the past day, most addresses—about 3.4 million out of a total of 4.4 million—had a lifetime trading volume of less than $10.
This suggests that due to Solana's low transaction fees, there may be a lot of spam or bot activity rather than a large number of "quality" users.
Here’s another example I mentioned earlier: Celo L1 (now L2) saw its daily active addresses for sending stablecoins surge to 646,000 in September. This number surpassed Tron, attracting the attention of Vitalik Buterin and CoinDesk.
Upon deeper analysis, Variant Fund data analyst Jack Hackworth found that 77% of Celo addresses transferred amounts of less than two cents, primarily because thousands of users were claiming small amounts of funds through a universal basic income protocol called GoodDollar. In both cases, active addresses indicated high usage, but upon closer examination, this assertion does not hold.
For more related information, you can refer to Dan Smith's research, which focuses on the misuse of daily active addresses.
Blockchain Profitability
Instead of focusing on active addresses to study blockchain activity, it is better to look at network fee metrics. Fees reflect the total gas consumption of using the protocol, without considering the issue of "quality" users.
Fees are often used by analysts and investors to determine which blockchains generate the most "revenue." We then consider the token issuance paid to validators as a cost. The result is the blockchain's "profitability."
This is how Token Terminal generates "financial statements" for crypto protocols. For example, the chart below shows that Ethereum L1 has accumulated millions of dollars in losses over the past two months.
The only issue is that this calculation does not take into account a key factor: unlike PoW chains (like Bitcoin), users on PoS chains can also easily earn token issuance rewards.
After all, if I can earn a 5% ETH/SOL staking yield from liquid staking platforms like Lido or Jito, why should I care whether the network is "unprofitable"? Therefore, concluding that "Ethereum is unprofitable" by treating token issuance as a cost is problematic.
In the real world, inflation is harmful because when central banks print money in large quantities, the increased money supply reaches different participants in the economy at different times, and those who receive the new money first benefit before "real" price adjustments occur. This is known as the Cantillon Effect.
In the PoS blockchain economy, this is not the case, as inflation (i.e., token issuance) is received simultaneously by everyone. Therefore, no one becomes richer or poorer because of it—everyone's wealth remains unchanged.
Instead, we can consider using the Real Economic Value (REV) as an alternative metric. REV combines network fees and MEV tips given to validators but does not treat token issuance as a cost.
Based on this, we can see that Ethereum has actually been profitable over the past two months:
REV can be said to be a better metric for assessing the real demand of the network and is a revenue metric that is more comparable to traditional finance (TradFi).
In summary, traditional profit and loss accounting methods are not easily applicable to blockchains.
For more information on this complex topic, you can listen to the recent Bell Curve podcast featuring Jon Charbonneau.
Total Transaction Value (TTV), Not Total Value Secured (TVS)
Oracles are the key infrastructure for blockchains to obtain off-chain data. Without oracles like Chainlink, the blockchain economy cannot reliably reflect real-world
The above is the detailed content of Better Use of Blockchain Metrics. For more information, please follow other related articles on the PHP Chinese website!
Hot AI Tools
Undress AI Tool
Undress images for free
Undresser.AI Undress
AI-powered app for creating realistic nude photos
AI Clothes Remover
Online AI tool for removing clothes from photos.
Clothoff.io
AI clothes remover
Video Face Swap
Swap faces in any video effortlessly with our completely free AI face swap tool!
Hot Article
Hot Tools
Notepad++7.3.1
Easy-to-use and free code editor
SublimeText3 Chinese version
Chinese version, very easy to use
Zend Studio 13.0.1
Powerful PHP integrated development environment
Dreamweaver CS6
Visual web development tools
SublimeText3 Mac version
God-level code editing software (SublimeText3)
Hot Topics
Ouyi download tutorial Ouyi latest version download tutorial (full version)
Jun 18, 2025 pm 07:39 PM
As the world's leading cryptocurrency exchange, OKX provides a safe and reliable trading environment and a rich variety of digital assets. 1. Visit the official website www.okx.com to download the application; 2. Select the Android or iOS version according to the device; 3. Install the application and complete registration or login; 4. Enable two-factor verification to ensure account security. The platform supports spot trading, leveraged trading, contract trading, DeFi, OKX Earn financial management and NFT market.
Official correct address of Ouyi Exchange APP
Jun 17, 2025 pm 01:24 PM
To obtain the official correct address of the Ouyi Exchange APP, you need to go through the following three official channels: 1. Download the official website, visit the official domain name [adid]fe9fc289c3ff0af142b6d3bead98a923[/adid] and download the corresponding system version; 2. Follow the official social media account to obtain the latest download information; 3. Contact the official customer service to confirm. At the same time, users should be alert to phishing websites, check domain names, install antivirus software, enable secondary verification and avoid leakage of personal information to ensure account security.
2025's latest top ten virtual digital currency trading platform software recommendations
Jun 19, 2025 pm 12:00 PM
Choosing a reliable cryptocurrency trading platform is crucial to ensure transactions are secure, reduce costs and enhance the experience. The top ten exchanges in 2025 include: 1. OKX, with powerful technology and a variety of trading methods; 2. Binance, large trading volume and perfect ecology; 3. Huobi, focusing on compliance and user expansion; 4. Coinbase, suitable for novices; 5. Kraken, high security and low fees; 6. Bitfinex, aimed at professional users; 7. Bybit, focusing on derivatives; 8. KuCoin, rich currency; 9. Gemini, strict supervision; 10. Gate.io, providing innovative products. When choosing, you should pay attention to security, transaction volume, handling fees, currency, user experience, customer service and compliance.
gate.io official website latest address gate.io web version latest login portal
Jun 24, 2025 pm 07:00 PM
Gate.io is a safe and reliable digital asset trading platform, and users should access it through their official address to avoid security risks. To ensure the security of your account, please use a secure network environment, enable two-factor verification, change your password regularly, beware of phishing websites and fraudulent information, and check the official email address. Gate.io provides a wide range of transaction types, contract trading, financial management and lending, Startup's first release platform, independently developed GateChain public chain, multiple security guarantees, 7x24-hour customer service support, and a fully functional mobile app. To start using Gate.io, you can access its official website to register an account, complete real-name authentication, top up and start trading.
The latest ranking of secure digital currency app software. Take stock of the secure virtual currency trading app in 2025
Jun 19, 2025 am 11:54 AM
Cryptocurrency traders should choose a safe and reliable and versatile trading platform to ensure asset security and trading efficiency. 1. OKX: a global leading platform, providing a variety of trading methods such as spot and contracts, and supporting convenient registration and identity verification processes; 2. Binance: is known for its low fees and rich currency, suitable for global users; 3. Huobi: has a long history, high security, and diverse products; 4. Coinbase: has a friendly interface and strong compliance, suitable for beginners; 5. Kraken: is known for its professionalism and transparency; 6. KuCoin: has a rich currency and provides a variety of reward plans; 7. Bitfinex: is aimed at professional users, providing leveraged trading; 8. Gate.io: Innovative products and
Which virtual digital currency trading platform is better? Recommended by the top ten digital currency app exchanges
Jun 19, 2025 pm 12:12 PM
Choosing the right virtual digital currency trading platform is crucial. The top ten mainstream platforms recommended include OKX, Binance, Huobi, Coinbase, Kraken, Bitfinex, Gate.io, KuCoin, Bybit and MEXC. 1. OKX provides a wide range of trading products and financial products; 2. Binance is known for its low fees and strong trading engine; 3. Huobi supports a variety of trading services such as spot and contracts; 4. Coinbase is suitable for beginners; 5. Kraken is highly secure; 6. Bitfinex has good trading depth; 7. Gate.io has a friendly user interface; 8. KuCoin supports a variety of small currencies;
Top 10 digital virtual currency trading platforms What are the easy currency trading apps?
Jun 19, 2025 pm 12:03 PM
When choosing a reliable cryptocurrency trading platform, you must give priority to security, fees, currency and functions. The top ten reliable platforms in 2025 include OKX, Binance, Huobi, Coinbase, Kraken, KuCoin, Bitfinex, Gemini, Bitstamp and Crypto.com. They each have their own characteristics. For example, OKX provides a variety of transaction methods and focuses on security; Binance is known for its low handling fees; Coinbase is suitable for beginners; Kraken and Gemini emphasize compliance and security, etc. When choosing, you should consider the following five points: 1. Security: Check whether you have dual-factor certification, cold storage and other measures; 2. Transaction fees: Compare the rates of different platforms and
Recommended Top Ten Cryptocurrency Trading Platforms in 2025 Summary of the Top Ten Cryptocurrency Exchange List
Jun 19, 2025 pm 12:15 PM
The top ten exchanges in 2025 include: 1. OKX, leading with technical strength and diverse trading methods; 2. Binance, famous for its rich currency and large trading volume; 3. Huobi, focusing on compliance and expanding the ecosystem; 4. Coinbase, a user-friendly platform suitable for beginners; 5. Kraken, recognized for security and low fees; 6. Bitfinex, an advanced tool for professional traders; 7. Bybit, focusing on derivatives and high leverage trading; 8. KuCoin, providing a wide range of currency options; 9. Gemini, emphasizing regulatory compliance and institutional services; 10. Gate.io, covering multiple transactions