Active user count can be a misleading metric for measuring the state of a crypto ecosystem as a small group of users can generate a significant portion of activity across multiple wallets, argues the co-founder of a blockchain analytics provider.
0xScope’s co-founder and chief data scientist, Philip Torres, told Cointelegraph at the Bitget EmpowerX Summit that between monopolistic founding entities, bots, exploiters and airdrop hunters, as much as 80% of blockchain activity can be generated by just a small number of entities, despite looking healthy on the outside.