For the first time, we are making all historical data for Daily Active Addresses (DAA) and Dev activity available for free, for every ERC-20 project listed on SANbase as well as via our API.
To our knowledge, this is the most comprehensive set of data for these two metrics currently on the market.
This does beg the question, however – why is this data important to investors?
Let’s take a look at both said metrics independently:
Daily Active Addresses
Daily Active Addresses (or DAA) shows the number of unique network addresses involved in transactions on a certain date. It may not be instantly obvious, but such a simple metric can in fact provide us with deeply-rooted insights into the general stakeholders’ behavior.
In order to actually extract value from DAA, however, two conditions need to be met:
- Rather than a single date, DAA data over time needs to be collected, and presented graphically
- Moreover, DAA data needs to be plotted directly over the asset’s price
Remove either of these conditions – and Daily Active Addresses become a useless metric.
To illustrate the point, just take a look at historical DAA data for a few better-known ETH-based projects:
BAT (Basic attention token)
ZRX (0x – protocol for the decentralized exchanges)
GNT (Golem Network)
What these charts demonstrate is that there appears to be strong correlation between the price of the token and DAA.
Coincidence? We think not.
Put simply, DAA represents the speculators’ level of interest – or enthusiasm – to interact with a token. Naturally, as the price goes up, the interest grows (we know how easily a project can be shilled – sorry, ‘promoted’ – by incentivised token holders) and new network participants arrive.
Conversely, once the price begins to drop, it’s followed by a declining interest of the network participants.
Combine DAA with other contextual data (like token accumulation/distribution, token velocity, days used, etc) and your understanding of the underlying token dynamic becomes much deeper than that of an average, news cycle-driven cryptomarket participant.
Many of these complementary “expert” metrics are readily available on our advanced dashboards – you can learn more about them here. New ones are currently being built/tested, and will be added in the future.
(P.S. There also seem to be some specific patterns appearing at the “top area”, but more on that in a followup article.)
Dev or Github activity as a market factor has been gaining steam in the crypto community as of late. Developers’ time is a relatively expensive resource, so when a project does invest in serious coding manpower, it implies several things:
- They believe the project will be a success
- The project will likely ship new features in the future
- It’s less likely that the project is just another exit scam
But wait, don’t other websites already provide Github data for free?
As it turns out – not really.
For example, did you know that the Particl project has more git commits than Ethereum!?
That’s according to Cryptomiso, anyway. Try filtering by Github Activity on any of the big data aggregators – including DigiByte , ChainCoin, GlobalCoin or CoinCheckup – and you’ll get similarly absurd results.
The reason? Particl has forked the Bitcoin source code and hence “inherited” all of Bitcoin’s commits and contributors.
There are other factors also contributing to skewed Github data (we wrote a detailed account of them here), but the bottom line is that current market solutions provide false Github data – useless at best, harmful at worst.
Our Dev activity data stems from our own, 100% homegrown formula. At Santiment, we personally developed a better method for estimating developer activity – by tracking the number of GitHub events that the project organization generated.
These events include:
- number of code pushes
- number of issue interactions — add/delete/edit comments in issues
- number of pull request interactions —add/delete/edit comments in PRs
- number of github wiki edits
- number of comments on commits
- number of repos open sourced
The benefits of our approach are multifold: If you fork a repository you don’t automagically “inherit” the events. You can’t alter your historical track record. Dev activity is not only committing code, but also reporting issues and discussing code changes . And the list goes on.
Shining a Light
Making this data publicly available is a much needed step in our continuous efforts to promote transparency and collaboration in crypto. As we wrote in the past, our industry is still riddled with scams, pump & dumps, manufactured panic – all enabled by the systemic lack of credible data.
The two metrics that we’re sharing today can enable faster price discovery, add clarity to emerging trends and, in general, make us all better informed about the workings of this beautiful, crazy market. Again, you can access them by visiting Sanbase, and selecting any token.
We hope that you find these metrics useful and look forward to your feedback. They are part of a much larger set of advanced metrics that we have been building upon. If you are interested in testing them all out, head on over to santiment.net/dashboards/.