Is the Daily Active Address misleading crypto investors?
(DAA) is often misused in the #cryptocurrency world, it is often confused with Daily Active Users.
Experts oppose the use of DAA as an indicator for fundamental analysis because of its misleading nature. DAA measures the number of unique #cryptocurrency wallet addresses involved in at least one transaction per day, but does not accurately reflect actual user activity, especially on networks with a large number of bots, such as #Solana and Base. Because a single user can control multiple addresses, the DAA numbers are inflated and misleading regarding the viability of the #blockchain .
Solana has become a favorite of bot operators due to its high liquidity and maximum extracted value (MEV) dynamics. Developer Robert Sass argues that MEV is a form of theft and that precautions are needed to support developers and users.
critics call Solana's approach fake it 'til you make it and report that fake accounts inflate the total block value (TVL). Current data shows that more than 80% of Solana's active addresses are trading for less than $10, indicating a low quality user base. Analysts such as Dan Smith of Blockworks Research warn against relying on DAAs as they are superficial and easily manipulated.
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