Module 1: Daily Active Users—Why DAU Matters for Crypto Investments

When you’re evaluating a blockchain for investment, the number of daily active users (DAU) is one of the most telling metrics you can use for analysis. It’s like the heartbeat of the network, showing you just how alive and well it really is. A high DAU can mean that there’s consistent engagement, which often correlates with a healthy, thriving ecosystem. But it’s not just about numbers—it’s about understanding what those numbers mean for the success of the network.

In this module, we’re going to break down why DAU is so crucial. We’ll explore how daily active users can indicate the potential for growth, the strength of a blockchain’s community, and the likelihood of future adoption. By the end of this module, you’ll know exactly what to look for in DAU metrics, where to find these metrics, and how to use this information to make smarter, more informed decisions so you might reach your crypto investment goals faster.

The Power of DAU: Gauging Growth, Community Strength, and Future Adoption

Daily active users aren’t just a number—they’re a window into the future of a blockchain. When you see a growing DAU, it’s a strong signal that the network isn’t just surviving; it’s thriving. More users mean more transactions, more interactions, and ultimately, more value being created. It’s a clear sign of potential growth.

But there’s more to it than just raw numbers. A high DAU also reflects the strength of a blockchain’s community. A vibrant, engaged community is the backbone of any successful project. These are the people who believe in the technology, who are using it daily, and who are likely to stick around for the long haul. When you see a strong DAU, you’re looking at a network with solid foundations.

And then there’s future adoption. Blockchains that already have a strong DAU are more likely to attract new users, developers, and projects. It’s a snowball effect—the more active users a blockchain has, the more attractive it becomes, leading to even more growth down the line. So when you’re analyzing a blockchain, pay close attention to its DAU. It’s one of the best indicators of where the network is headed and whether it’s worth your investment.

Defining a Daily Active User: What Really Counts?

When it comes to daily active users, not all metrics are created equal. The definition of a DAU can vary depending on who’s providing the data. Some count every unique sender as a daily active user. Others might look at different criteria, like those who interact with smart contracts or perform certain types of transactions.

Understanding these differences is crucial because not all DAU figures tell the same story. A blockchain might boast a high number of active users, but if that number is inflated by minimal transactions, it might not reflect the true level of engagement. In this section, we’ll break down the various ways a DAU is defined across different data providers, so you get a clearer picture of what those numbers really mean. By the end, you’ll be better equipped to interpret DAU metrics and use them to make informed decisions about your crypto investments.

It's best to use multiple sources when getting Daily Active Users. Below are some data providers that I use, along with their definitions of Daily Active Users and how to get the data.  

Artemis Terminal

Let's start with Artemis Terminal. Click on the Launch Terminal button on the top right section of the home page. 

 

Finding Daily Active Users In Artemis

Take a look at the video below for a quick example of how to get Daily Active Users on Artemis

You can also get Daily Active User data at Token Terminal, Dapp Radar and DeFi Llama. 

Now that we’ve explored the ins and outs of daily active users, it’s time to dig deeper into DAUs and into another on-chain metric that could give you a crucial edge. Let’s dive into how you can use the Network Value to User Ratio (NVU) to spot potentially undervalued blockchains and sharpen your crypto investment strategy.