The Ethereum blockchain-based metaverse projects Decentraland and Sandbox responded with reports of low daily user activity on the platforms, claiming that a “misinformed” metric was used to measure each of the platforms’ daily active users (DAU).
The controversy appears to have arisen from data obtained from DappRadar, with observers suggesting that the Decentraland metaverse is seeing 30 DAUs despite a market cap of over $1.2 billion.
Decentraland ( $MANA ) has 30 daily active users
and a market cap of $1.2 billion pic.twitter.com/u4MBNsWvwk
— TAKE (@0x_shake) October 6, 2022
However, Decentraland reported in a tweet on October 8 that “some sites only track certain smart contract transactions but report them as daily active users […] which is inaccurate.”
Sandbox CEO Arthur Madrid tweeted on October 10 that “on-chain transactions do not mean users” and that non-fungible token (NFT) holders are “investing in an asset that will increase in value over time to benefit utilities.”
In a tweet, Decentraland said “better data” can be found in DCL Metrics, a data aggregator tailored for Decentraland that measures DAU by the number of “people who log in and then leave the site.”
This difference is significant as Decentraland’s September data shows 56,700 monthly active users, but only 1,074, or 1.89% of those users, actually interacted with Decentraland’s smart contracts.
Let’s look at some data for September:
56,697 monthly active users
1074 users interact with smart contracts
1732 marked emotions
6,315 wearables sold
300 authors received royalties
161 community events created
148 DAO statements
— Decentraland (@decentraland) October 7, 2022
Similarly, Sandbox has denied data that the platform has low DAUs, stating on Twitter that it has 201,000 monthly active users.