HOW MANY WEB3 USERS ARE REAL

Summary from the TLDR Crypto newsletter

Chaos Labs developed a Sybil Detection Platform to enhance risk models by identifying wallet and whale concentration in DeFi applications, which it has since refined to apply across various verticals, including social applications. Its clustering algorithms help optimize incentive strategies and explore non-DeFi use cases, revealing that some application user bases could be over 98% Sybil, posing challenges in distinguishing genuine user interactions from AI-driven activities.