A service becomes more valuable to every user the more people use it. A marketplace with many buyers attracts sellers — and those sellers attract more buyers.
MoatLens tip: This is the strongest moat there is, because it reinforces itself: the lead widens without the company lifting a finger. But beware the word. It is claimed for every platform and rarely applies. The honest test: would a new user switch if a rival offered the same thing more cheaply? If yes, it is not a network effect — just habit.
In MoatLens this explanation sits right next to the number — one tap away. And you see the ten-year trend instead of a single value.
