Researcher finds disparity in trade volumes of major cryptocurrencies: report
Kevin Rooke, a cryptocurrency researcher produced data that created a commotion among Twitterattis. He analyzed cryptocurrencies on the OnChainFx list which had more than 400 active addresses on a 24 hour period and put together an index. The fact that the index missed some of the major cryptocurrencies like Ripple, Tron and Iota erupted a wave of comments on Twitter.
Forget about dApps with no users, let’s talk about tokens with no users.
Only 27 cryptocurrencies had over 400 active addresses today. Yes. 400 users.
You’d think if there was ever a time to ‘buy the dip’ or ‘panic sell’ it would be today. ?♂️ pic.twitter.com/l1INETwawj
— Kevin Rooke (@kerooke) September 6, 2018
The index is based on the transaction volume of the cryptocurrencies which is a strong indicator of cryptocurrency usage. The index compares the number of users making transactions as opposed to transaction volume. When Rooke compared the index to the actual transactional volume of cryptocurrencies he found some variations. On his Twitter post, he said, ” You’d think if there was ever a time to ‘buy the dip’ or ‘panic sell’ it would be today.”
Dogecoin which just climbed to the 20th position on the top cryptocurrencies appeared on the index. According to his research, Dogecoin had 135.222 active users in a day. However, Dogecoin’s actual trade volume was under $37 million.
The Missing Cryptocurrencies
The first crypto that could be spotted missing is the third largest cryptocurrency by market cap, Ripple. Ripple features more than $227 million in 24 trade volume but didn’t get placed on Rooke’s list. Moreover, on OnChainFX, XRP showed no data for 24-hour active addresses. Other coins missing were IOTA, Binance Coin, NEM.
Some Twitteratties complained that Rooke’s data was incomplete. The list failed to mention KMD, NX or Tube, which according to the Twitter comments had more than 400 active wallets. One also indicated the dearth of cryptocurrencies on the OnChainFx list but Rooke defended his index saying that OnChainFx listed all major cryptos.
Image via Shutterstock
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