It's still extremely popular and active. I just wish they didn't take so long between adding content to the world. I also feel like the danger of the world goes away too quickly; updates have made the player powerful more than it made the world dangerous.
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Oh absolutely! My favourite part is always the first night or two, when your scrambling around trying to cut down wood with no tools so you can have a roof over your head for the night. After day 300+ there's barely anything in the game that can kill you