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Impacts of the new version of Station on Terra
Introduction
Recently Terra Protocol completed its first step towards building the interface to Web3 by launching the new version of Terra Station.
Terra Station is the most famous wallet in the Terra ecosystem.
Apart from holding the primary assets, Terra Station enables users to perform the most common crypto activities, including assets transferring, staking, token swapping, and governance voting from both computer and mobile devices.
Terra Station's updated version includes the exciting new feature of IBC Chain Integrations. Station now supports Terra, Osmosis, Juno, Kujira, Carbon, HuaHua, Crescent, Terra Classic, Mars (testnet), and Sei (testnet), and many more IBC chains in the future. You can read the full announcement about the new version here:
Methodology
For finding the changes of users behavior in the week before and after the new version of Station, I surfed the these metrics:
> * Newly created wallets > * Wallets activity in making transactions > * $LUNA transfers between personal wallets (I substracted Terra addresses with labels (like exchange wallets, token LPs,...) from normal wallets in order to find personal wallets to wallets transfers only) > * Swapping > * $LUNA staking & unstaking
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Note: As the announcement of the Station was published in 14th January, I divided the surfing timeframe to 2 different parts:
1: 7th~13th January (before the announcement)
2: 14th~20th January (after the announcement)
Findings
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In 7 days, Station has brought 1690 new wallets to Terra's ecosystem.
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New addresses are being generated more frequently since the launch of Station, as the average number of newly created wallets per day has increased from 152.7 to 241.1.
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61% of the new wallets created on Terra between 7th~20th January are made after the launch of Station, which shows Stations ‘ positive impact on this metric.
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In this period, the record of the most wallet creations in one day was submitted on 15th January a day after the launch of the station.
(362 new wallets in one day)
Findings
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Terra is used by users more frequently than before, as the average number of daily transactions by each user increased after Station's launch. The average number of transactions by a user was 7.5 before Station launched, but it reached to 8.1 transactions per day after launch.
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New addresses are being generated more frequently since the launch of Station, as the average number of newly created wallets per day has increased from 152.7 to 241.1.
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Here I created some tiers which show the level of activity of wallets:
> Tier 1: wallets making transactions on 1 day of a week > > Tier 2: wallets making transactions on 2 days of a week > > . > > . > > . > > Tier 7: wallets making transactions on all 7 days of a week
Since the station's launch, the number of wallets in all tiers has increased, meaning that there are more wallets with weekly transactions available. However, the share of each tier has largely remained the same.
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15th January, the day after Station launched, was the busiest day in this timeframe, with 4103 active wallets.
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Findings
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$LUNA transfers have boosted in early days of launch of the new Station. After the launch of new Station, 44m $LUNA tokens have been transferred between Terra wallets, and the first 3 days of Stations launch have the highest volume of transfers with 25m $LUNA.
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The daily average volume of wallet-to-wallet $LUNA transfers has increased by 15m in one week after the launch of the updated station, and reached 43.9m $LUNA per day.
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As a result of Terra Station's new version, each $LUNA transferring transactions have more volume than before.
During the first week after the launch of the new Station, average volume of 1 transferring transaction reached 969 $LUNA.
Findings
- Both the number of daily swaps and the number of swapper wallets increased in the early days of the station's upgrade.
- One week after the launch of the new Terra Station, the average number of swaps on DEXes increased from 137.1 to 190.2 swaps per day. Also, each wallet makes almost 6 more swaps per day on average, with average swaps per user increasing from 11.9 to 17.7.
Findings
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Despite the launch of a new version of Station, the overall trend of $LUNA staking/unstaking volume and transactions has not changed too much. The number of staking transactions are more than unstaking transactions but the volume of the unstaking transactions is more than the staking transactions.
Meanwhile, if we look at the average amounts we see some positive changes in the volumes and users behavior in staking $LUNA:
As we can see, the Net volume of staked $LUNA has increased from -1.1m $LUNA to -0.9m $LUNA, meaning that the gap between unstaked and staked $LUNA has decreased (more $LUNA are being staked by users since the new version of Station launched).
Personally I think this could be as a result of the Quick Stake feature which is available in the new version of Terra Station. This feature lets users stake their tokens with just a few simple clicks.
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The $LUNA price chart in this period shows a strong correlation between stake/unstake actions and the price of $LUNA. Whenever the $LUNA price spikes, stake/unstaking activity increases as well. Combined with the new version of Station, this could be another reason for the recent increase in stake/unstake activity on Terra.
Conclusion
The release of the new Terra station version has positively impacted the Terra protocol. A higher rate of new address creation is taking place, and more $LUNA transfers between personal wallets are taking place. Defi activities like token swapping and staking are being boosted, thanks to features like Quick Staking and Easy Swapping.
I personally believe the IBC Chain Integration will be a major factor in motivating users to keep using Terra Station (and the Terraerra ecosystem generally) since it will no longer be necessary to install other wallets since Terra Station will have an address on every IBC chain.