What you need to know
- Facebook was the first to introduce Facebook. DAU/MAU ratio to measure user engagement, or “stickiness” of a platform or app.
- Because repeat users are typically more valuable than new users – and less costly to obtain — a high DAU/MAU can be a good indicator of adoption and growth.
- Investors can combine DAU/MAU with other metrics, such as TVL or transaction volume, to identify “sticky” projects with excellent growth potential.
Investors who are intelligent will look at the numbers first before buying a crypto token. (See our guide of the three most important metrics for cryptocurrency investors.
One of the most significant numbers is the Number of users in a crypto projectThis is similar to the number of customers in a traditional business. This number can be measured using Daily Active Users, or Monthly active users.
There is also a metric called the Daily active users (DAUs) divided by monthly active usersDAU/MAU
This ratio can also be used as a measure user engagementBy showing how many people who use it in a given month also use it every day.
In this guide, we’ll show you examples of the DAU/MAU ratio and how you might add this ratio to your investment analysis.
Understanding the…
