Health, Wealth, and Happiness

April 8, 2024

“Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.”

- Steve Jobs

Howdy, investors!

You've heard us talk about daily active users (DAU) and their longer-term cousin, monthly active users (MAU). Today, we're looking at the DAU/MAU ratio, which is the intersection of the two. It can be a useful way to determine which blockchain projects are sticky—and possibly more valuable.

Analysts predict an incoming "Altcoin Season" that could see smaller tokens outperforming bitcoin for several months.

We rely heavily on Token Terminal for data, and recently, they got together with Bloomberg to discuss the importance of on-chain data to investment analysis.

And for you stakers out there, Aave is now considering turning on their fee switch to share revenues with Aave stakers.

Read on to explore more!

Using the DAU/MAU Ratio to Guide Investment Decisions

by Matthew Du

The DAU/MAU ratio is a powerful formula for finding high-engagement crypto projects with growth potential.

Facebook initially introduced the DAU/MAU ratio to measure user engagement or the "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.

Crypto investors can combine DAU/MAU with other metrics, such as TVL or transaction volume, to identify "sticky" projects with excellent growth potential.

Click to learn how to apply DAU/MAU to your favorite projects >>

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Future Winners Portfolio Soars Past S&P 500!

It's the start of a new quarter, and we've got great news for those investing in our Future Winners portfolio: you are far outperforming the stock market.

We launched the Future Winners portfolio in 2021, responding to reader demand for an all-crypto strategy. Future Winners focus on the future leaders of tomorrow with four investments: BTC, ETH, BNB, and UNI.

Patient investors have been rewarded! Our portfolio performance has surpassed the S&P 500, solidifying our belief that these four picks are the best bets in blockchain.

Premium Members can download the Q1 2024 report here, with tips on how to get started investing in this portfolio today.

Not yet a Premium member? Sign up here and get in on the action - get access to our ongoing portfolio updates, investor scorecards, VIP events, and more!

Must Read

Today's most important stories for crypto investors.

Is It Time for Altcoins to Shine? Analyst Predicts Shift in Crypto Dynamics (Bitcoin.com)

As bitcoin and Ethereum consolidate, discussions about the anticipated "Altcoin Season" have intensified on social media platforms like X. Altcoin season is considered the most profitable time for traders due to the proliferation of altcoins outperforming bitcoin. As with the last altcoin season in Q4 2023, keep your eyes peeled for investment opportunities outside the big blockchains.

Onchain Data and Its Role in Investment Analysis (Bloomberg x Token Terminal)

Bloomberg and on-chain data provider Token Terminal explore the relatively uncharted territory of on-chain data. The team discusses the sources and interpretation of this emerging form of financial data, its unique characteristics, and how it fits into investor analysis. The accompanying 30-minute webinar will help you better understand how on-chain data can be used to support and enhance your investment analysis.

Aave Teases Upcoming "Fee Switch" Vote for Aave Stakers (The Block)

According to Aave Chan Initiative founder Marc Zeller, decentralized lending platform Aave might soon vote on activating a "fee switch" to distribute fees to holders (similar to that recently proposed by Uniswap). Aave DAO's current net profits of $60 million per year could cover five years of operational costs. The distribution of fees to users would make Aave and its token far more attractive to users, potentially supercharging its growth.

Long-Term Wealth

$1K invested at today's market prices

This asset	invested 5 years ago	is now worth
Bitcoin (BTC)	$1,000	$11,296
Ethereum (ETH)	$1,000	$8,424
Uniswap (UNI)*	$1,000	$2,033
BNB Chain (BNB)	$1,000	$43,072

Note: The future may look different from the past. Please invest carefully.

* As UNI is less than five years old, we calculate from the launch date (Sep 2020).

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Chart of the Day

Aave: King of the Blockchain Lenders

Aave fees have been on a clear uptrend since the start of the year, which could be great news for investors in the Aave token if the token holders of the protocol vote to enable fee sharing for stakers (see news story above).

Distributing fees to Aave stakeholders could significantly enhance the token's perceived value, which has increased 65% over the past year.

In the lending platform sector, Aave remains the clear leader, and this move could further solidify its position in a market sector that saw total lending nearly double to $11.5 billion in 2024.

If Uniswap is "King of the DEXs," then Aave is "King of Lending." While the token has gained substantially over the past year, it has been relatively flat lately and is well off its all-time high. A new fee initiative and potential Altcoin Season could really benefit Aave in the coming months. Investors take note!

ICYMI