3 Findings from Using Dapp Performances as Indicators on Token Trading

Last week we launched two new functions - added ERC-20 token tracking for Ethereum dapps and dapp token price analytics.

We’ve received a great amount of feedback and inquiry on how to utilize the two indicators to understand the usage and price trend of a token.

See the explanation from our CEO

Still confused? Let us show you how to master the tools through some of our findings:

Is Having A Token The Driver To A Dapp’s Usage? 

On March 23rd, 60 of the 582 active dapps have their own tokens (listed on exchanges). These projects include the one that raised one type of token and launched different products around the ecosystem, such as MakerDao who runs the lending product and Oasis Dex. 

How are the 60 dapps with their own token performing? 

• Active dapps with tokens: 60 (10.31%)

• 24H Users: 37,981 (26.19%)

• 24H Transaction: 636,562 (31.86%)

• 24H USD Volume: $75,459,919 (73.05%)

We can see that these projects did contribute a huge amount of users, transaction and more importantly, the amount of USD volume of daily dapps usage. It shows that the dapps who had their own tokens are more likely to be used. We think that another reason behind would be those projects with tokens are better funded to build better products. 

Is Dapp Performance An Indicator Of Its Token Price For Gaming Dapp? 

Building a solid and healthy game economy is crucial for a successful game. We found that for games, or game-related dapps, good user engagements usually reflect on an increase of its token price. 

• Decentraland and MANA: Decentraland has a lot of user activities since its main launch after 2 years of development. Its number of active users and transaction amount has shown a positive impact on the price of MANA, the token of Decentraland. 

• HyperDragon and MIX: MixMarvel is the builder of several popular blockchain games and HyperDragon is one of the most popular projects on the Ethereum blockchain. Through the token price chart function, we can see that the price of MIX is showing the same direction as HyperDragon’s volume. 

How About High-risk Dapps? 

HEX: The way a high-risk dapp grows is usually very similar to those Ponzi Scheme - take the money from the new participants and give it to the earlier participants until it is not sustainable anymore. We took a look at HEX, the token price goes up as there is an increase in users, amount of transactions, and volume. 

This is an interesting finding from the data but we suggest everyone to stay away from high-risk dapps or similar projects. 

Most of the utility tokens are invented and created based on their respective businesses. A dapp’s usage reflects the value of its own token to some extent as we believe. 

What do you think? Did you have enough take-aways from the above session? Or did you find something more interesting?

Share your thoughts with us in comments!