Avalanche Swaps vs Transfers (Redux)

    ✏️ Introduction


    Avalanche:

    Avalanche is a blockchain that promises to combine scaling capabilities and quick confirmation times through its Avalanche Consensus Protocol. It can process 4,500 TPS (transactions per second). For Ethereum, that number is 14 TPS.

    Avalanche went live in September 2020 and has since become one of the largest blockchains. Avalanche isn’t only for Defi, though. Ava Labs financially supports metaverse investments in the network, too, with the idea being that a fast and cheap network could effortlessly support blockchain-based games and virtual worlds. → source

    USD Coin (USDC):

    USD Coin (USDC) is a type of cryptocurrency that is referred to as a stablecoin. You can always redeem 1 USD Coin for US$1.00, giving it a stable price. On Coinbase, eligible customers can earn rewards for every USD Coin they hold.→ source

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    🔍 Methodology


    This dashboard examines activities related to USDC, including swap, transfer, burn, and mint on the Avalanche chain. The Flipside platform provides the data, and the basic schema used is Avalanche. We use Table fact_event_logs to extract the desired data using the following event types.

                                                                  **Swap,  Transfer,  Burn, Mint** 
    

    In general, this dashboard is divided into two parts. First, the ==number of transactions==, the ==number of users==, the ==volume==, the ==average volume==, and the ==distribution of transactions== for USDC swap and transfer are investigated, then, the items mentioned for burning and minting this token are analyzed.

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    📈 Analysis


    > This part is divided into two parts. First, the data related to the USDC swap and transfer on the Avalanche chain will be reviewed hourly and daily from March 1st, and then the data related to Burn and Mint will be reviewed.

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    Burn Vs Mint

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    ✅Observation & Insights:


    The volume of transferred USDC is 50% higher compared to the swapped amount. On the other hand, more transactions have been recorded for the USDC swap. As a result, the average swap volume(16.02K) is about half of the average volume that has been transferred(35.6K).

    According to the number of users related to swaps (108.7K unique wallets) compared to the number of users related to transfers (117.3K wallets), on average, the number of transactions per user in the swap is more than this number in Transfer.

    Hourly Analysis

    Daily Analysis

    ✅Observation & Insights:


    According to the donut charts above, the share of swaps in the number of transactions and users is more than the share of transfers. But in terms of volume, transfer allocates the most significant share.

    The graph on the left also shows the distribution of the number of transactions based on volume for swaps and transfers.

    Most transactions in both types (swap and transfer) are related to transactions with a volume below $100. Transactions with more than 1 million dollars in transfer are more than swap transactions.

    ✅Observation & Insights:


    According to the above charts, the average number of swap transactions has increased by three to four times since November 8th due to the bankruptcy announcement of the FTX and has returned to its previous state since November 11th. From November 10th to August 4th, we have seen an increase in the number of users to transfer USDC. As a result, on August 4th at 10:00 AM, there was an increase in the number of users to swap USDC. On September 29th, we also see an increase in the number of users for both swaps and USDC transfers. On August 18th, from 10:00 PM to August 19th, at 10:00 AM, we saw a sharp drop in USDC transfer and swap volumes, but after that, the volumes returned to the previous state. From the end of October to November 12th, we see a sharp increase in the volume of USDC. On November 15th, the volume of transferred USDC increased significantly and reached 1.67 billion dollars. Generally, we always see a peak in the swap volume chart after an increase in USDC transferring activity. On November 15th, at 01:00 AM, the average volume of swaps also increased considerably and reached 2.35 million dollars. In general, the share of swap transactions is higher than the transfer, but in terms of volume, the largest share is related to the transfer. As it is clear from the above graph, since September 25th, the share of transfer action from the volume of USDC is always more than the swap.

    Hourly Analysis

    Daily Analysis

    ✅Observation & Insights:


    The volume of transactions related to the USDC mint at the beginning of the studied period, that is, from July 1st to September 24th, was usually lower than the volume of burning transactions, but from September 25th, the volume related to the mint increased, which it seems that it is related to the decline of the crypto market. As a result, the market needs more stablecoins. The lowest USDC burning transaction volume on the Avalanche chain was on November 3rd, when the number of tokens burned was almost zero, while 4.34 million USDC were minted.

    The news of the collapse of the FTX reached the whales earlier, and they were converting their assets to stablecoins such as USDC. On December 3rd, we also see a decrease in the volume of USDC burning transactions. The trend of the average volume of USDC burned in the last month is also downward, and the average volume of USDC minted is usually more than its burned amount.

    ✅Observation & Insights:


    According to the graphs on the left, in terms of the number of transactions, USDC burning has a larger share, and 74.3% of the transactions are related to it. Also, in terms of volume, 59.7% is related to USDC burning.

    💡Conclusion


    According to the mentioned results, the volume of transferred USDC is 50% more than the swapped amount of this token. Since November 8th, with the announcement of the bankruptcy of FTX and the decrease in users' trust in centralized exchanges, users have tried to transfer their assets to safe wallets. Since the end of October, a very high volume of USDC has been moving on the Avalanche, so on November 6th (2 days before the announcement of the FTX collapse), 3.13B USDC was transferred. This high volume is one of the signs of a sharp fall in the market. Regarding the number of swap and transfer transactions, the largest share is related to transactions with a volume of less than $100. Since the end of July, the volume of UCDC burn transactions has been decreasing, and over the past month, the number of Mint transactions has been increasing. In terms of volume, according to the market's need for stablecoins, the USDC minted in the last month is more than burning. But generally, from March to July, the volume of burning USDC has been about 50% more than its mint.

    Any Question ❓


    Thank you for being with me so far in this analysis. If you have any questions, you can ask through the following ways. I will be pleased to answer the questions.

    Discord: mr_nobody73#9620

    Twitter: Mr_Nobody73

    Twitter link for this dashboard:

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    Swap Vs Transfer

    ✅Observation & Insights:


    The amount of burned USDC is about 48% less than its minted volume. Also, the number of transactions made for burning is twice the number of mint transactions. As a result, the average amount of burned USDC is half of its minted amount.