According to Maddrey, it is difficult to measure usage on blockchain, but the main way Coin Metrics approaches this problem is by looking at the number of addresses with a balance over a certain amount. For Tezos, the number of addresses with a balance of more than $10 was more than 27,000. While this is very small compared to the 30 million addresses on Bitcoin, he mentioned that this isn’t a perfect metric, because users can have more than one address which can skew the derived conclusions.
Maddrey also said that Tezos is growing relatively quickly, when compared to Bitcoin and Ethereum, and has a more even distribution of wealth between wallets. A closer look at the active addresses on the network, a proxy for usage, showed little growth in the number of addresses sending or receiving tokens on a given day. This means that while more users are joining the platform, they don’t continue to actively make transactions.
An interesting observation he made during the talk was that there are almost 10 times more addresses that received tokens, than the ones that sent tokens on Tezos. He also said that this ratio is more even if the cryptocurrency is used more, attributing Tezos’ high ratio to more delegation occurring on the network.
Over the course of 2019, Tezos didn’t see much growth and possessed a lower velocity, when compared to other cryptocurrencies. Filtering out wash-trades, the average fees per day over the last month on Tezos was around $9.
Maddrey added that while Tezos isn’t seeing much growth, its realized cap is higher than its market cap. He explained that realized cap is a metric used by Coin Metrics where it values the market using the value of the tokens at the time of transaction. He said that a higher realized cap indicates that Tezos is bullish and could be slightly undervalued.
He concluded by saying that people are investing more in Tezos than what the market is valuing it, and that its cumulative mining revenue is increasing steadily.