- The number of unique users in Audius rose to over 4M in February.
- However, the number of monthly plays has flattened at about 8.9M.
- The challenge for Audius is that it is facing stiff competition.
Audius token price defied gravity on Tuesday as most cryptocurrencies dropped. AUDIO, its native token, rose to a high of $0.2935, which was the highest level since March 20 of this year. In all, Audius price has jumped by over 40% from its lowest level this month.
Is Audius a good investment?
Audius is a major blockchain and Web3 platform that seeks to become a leading platform in the music industry. It makes it possible for independent musicians to list their music and then earn a nice return whenever people listen to their songs.
Audius pays musicians a 90% commission for all streams and then the 10% commission goes to people who support the network. Further, musicians can use its platform to raise money through crowdfunding.
In March, the developers added more features in its ecosystem by introducing non-fungible token (NFT) capabilities. This seems like a logical move since artists can create NFTs and sell them to their fans globally.
The challenge for Audius is that its user base has stalled. When Nas and Katy Perry invested in Audius, the company said that it had over 5 million users. However, the most recent data in Audius dashboard shows that it had 4 million unique users in February. That was an improvement considering that the number of users bottomed at 1.91 million in October last year.
Another positive data is that Audius plays have also been rising. Data shows that the number of plays in February came in at about 8.9 million. This signals that on average, the unique users made less than 3 plays per month.
In contrast, bigger platforms like Spotify and Apple Music have hundreds of millions of users globally. In its recent report, Spotify said that it had over 456 million users while Apple Music has over 88 million users. Therefore, in the long term, Audius will find it difficult to compete with these established Web2 platforms. In a recent note, DappRadar said:
“In essence, the music industry is still battling with the human elements and the shift in focus required to apply technology that has existed for more than a decade.”
Audius price prediction
The 4H chart shows that AUDIO has been in a bullish trend in the past few weeks. It has managed to move above the 26-period and 50-period exponential moving averages (EMA). The Relative Strength Index (RSI) is approaching the overbought point of 70 while the Stochastic Oscillator has moved to the overbought level.
Audius price seems to be forming a head and shoulders pattern. Therefore, there is a likelihood that the token will have a bearish breakout if buyers cannot push it above the current level. If this happens, the next key level to watch will be at $0.25.
