Numerous cryptocurrency initiatives aren’t performing as well as expected. At the time of its launch, Decentraland, a metaverse project with a shitload of distinctive features, was lauded enthusiastically as the epicenter of metaverse technology and a component of the future of digital experiences. Unfortunately, analysis reveals that there are now only 38 active users, which limits the traction of their goal.
It’s worth noting that, according to DappRadar, an active user is defined as a unique wallet address interacting with the platform’s smart contract. So, for example, logging into Decentraland to make a purchase, the platform’s native utility token is an example of “active use.”
This means that DappRadar’s daily “active users” figure does not include people who log in and interact with other users on a metaverse platform or drop in temporarily for an event like virtual fashion week. It may also imply that fewer transactions, such as purchasing or selling a non-fungible token (NFT), occur on these platforms than the number of visitors.
“DappRadar doesn’t track our users, only people interacting with our contracts,” Decentraland’s creative director Sam Hamilton told CoinDesk, adding that the platform averages around 8,000 users on an average day.
According to Sam Hamilton, Creative Director of Decentraland, while they record 8,000 users on average each day, this includes everyone who passively engages with the metaverse. In addition, he stated that while traffic peaked in March, the number of “tourists and spectators” has declined.
Decentraland has high valuations despite low user metrics. Decentraland has a market cap of roughly $1.3 billion, according to Messari data.
Even though the idea of the metaverse has gained enough traction for businesses to reinvent themselves around it, it will probably take some time for it to gain global acceptance.
According to Sasha Fleyshman, portfolio manager at the digital asset investing firm Arca, users will benefit greatly when metaverse platforms operate as planned.
“Anyone telling you that there’s a metaverse today that has worked is lying through their teeth,” said Fleyshman.