BAT - Growing out of speculative phase?

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Apr 19, 2019

Brave rewards is now available on Brave's Android app, allowing users to easily reward their favourite content creators by tipping them in BAT. As it stands, Brave currently have around 50,000 verified creators in the Brave Publisher program accepting BAT as rewards.

It's interesting to note that daily active addresses (DAA) for BAT has been increasing since the start of the year. Could it be a sign of actual adoption?

It's important to separate the speculative transactions from actual network usage. To do that, we take a look at the % of Daily active deposits (DAD) in DAA.

The current DAD % is 17% , which is considered rather low inn a space where most the use case is mainly speculation. On average the DAD % is 14%. This may indicate that the majority of the addresses are participating in tipping or just actual network usage.

In contrast, check out the DAD % for CELR:

Average DAD % is 51%, naturally so as the project is relatively new and the most immediate use case will be speculation.

Another interesting observation is how % of supply on exchanges have fallen quite a bit since late last year. Currently it's only sitting at 20.67%. The amount of possible sell pressure is lowered given there's only this much of BAT to speculate on exchanges.

% of token supply on Exchanges reduced over 6 months

That being said, rewards in BAT will eventually have to translate to something of value. Be it in exchange for BTC, USD, or other areas on the platform. Will be interesting to see how things will look like over the next few months.

The current state of BAT may represent show signs of actual adoption as it continues to move away from the early speculative days of a project. Here's how the number of Holders have grown over the past 2 years.

From the early speculative days in 2017 to the fall in 2018 and now. We are observing a constant growth of holders on the network which is a healthy sign (even during the bear market). More so when majority of the holders stem from the 10-100, 100-1000 and 1000 - 10000 coins segments.

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Apr 19, 2019

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