Analysis of User Retention on Different Blockchains

The flow blockchain was launched in conjunction with Dapper Labs’ NBA Top Shot, a blockchain-based digital collectibles marketplace that specializes in basketball cards. According to Dapper Labs, as of May 2022, the flow blockchain has processed more than 20 million NBA Top Shot transactions worth over $1 billion. Flow was first built as a tool for Dapper Labs’ game developers to meet their own needs, and later launched publicly to support other decentralized applications. (source)

In this dashboard focusing on Blockchain Flow, we want to check the retention of users in different Blockchains based of FlipSideCrypto datasets .

First, we identify the monthly new users of each of the following blockchains in the given interval with the parameters explained below, and then we examine the average number of transactions of regular users of each blockchain in a one-month interval, and finally the distribution of the distance between two consecutive user transactions per day for different blockchains are shown in charts.

The blockchains we discuss in this dashboard are:

                                       ***Ethereum/Avalanche/Flow/Near/Algorand/Optimism***

Image Credit : Crypto Ticker

Work Description

This dashboard first identifies the transactions performed by users during the specified time period. To find these users and transactions, the following data is used in FlipSideCrypto:

In addition to the most important information about each transaction, such as date and the wallet, the date of the next transaction and the distance in days to this transaction are also calculated.

In the next steps, this basic data is then used to examine and analyze different blockchains and the longevity of users.

#1 - New Users

In the first part of this analysis, we will look at the number of new users of different blockchains over the specified time period to see how successful each blockchain has been in attracting new users.

Look closely at the charts below to analyze them later.

About Me

Mojtaba Banaie

Email : mojtaba.banaie@gmail.com

Twitter: @cryptolizr

Discord : smbanaie#5528

Date of Analysis : 2022-12-20

Takeaways

Analyzing the behavior of users in different time periods requires various information in each blockchain, and perhaps the above analysis is only general enough, but the following overall results can be obtained from the analysis:

• Most users of the different blockchains, on average (here we mean the statistical median), made only one transaction in the six-month period in which this analysis was conducted (second half of 2022). This means that the majority of users visited a blockchain only once during this period.
• For the users who made more than one transaction on a blockchain, the period between two consecutive transactions is less than ten days, which means that in certain periods the number of user transactions is higher for various reasons.
• Optimism and Avalanche were more successful than others in terms of average monthly user transactions.
• From the distribution diagram of days between two consecutive transactions, it is clear that Flow has succeeded in getting users to interact with it in different time periods.

Observations #2 : Active Days

• As for the average number of active days of users, Optimism is in first place, Avalanche is in second place and Flow is in last place.
• The average number of active days for regular users is less than one, which means that most users have very few active days.
• The median number of active days for Optimism is over 4 and for other blockchains it is 1. This means that in the given period, which by default is the second half of 2022, more than half of the users have

Definitions & Assumptions

Active User

> In blockchain transactions, a user can be the recipient of a token or transaction, or the executor and initiator. In this analysis, we considered only the users who pay the fee and execute a transaction as blockchain active users.

Normal Users

> Considering that the programs running on the blockchain have the same address as the regular users of the blockchain, and since these users usually have a large number of daily transactions, and if we do not exclude them from the analysis, all important statistical measures such as the average and median (of the distance between two consecutive transactions, …) will be biased, in all the analyses of this dashboard, except the first part where only new users are counted, we considered users as normal users whose number of monthly transactions is less than 600. (being less than 20 transactions per day on average).

Board Parameters

This dashboard has two parameters:

start_date

end_date

which specifies the interval in which the user wants to perform the analysis.

It is enough to specify the beginning and the end of the interval and then click on the option

Apply All Parameters

at the beginning of the Dashboard.

Unfortunately, due to the slow response of the Solana dataset, we were unable to analyze this popular blockchain in this dashboard, but their SQL codes are available, and by resolving this issue, the analysis can be rerun with the Solana blockchain included.

Observations #3 : Distribution of Days Between User Transaction in Different Blockchains

• The main point that can be seen at first glance in the graphs above is that most users of the different blockchains have completed their consecutive transactions in less than ten days. Although the number of user transactions may be small, their consecutive transactions are completed on days that are close to each other.
• For the two blockchains Flow and Algorand, about two-thirds of users conducted only a single transaction in the specified time period. For Ethereum, this percentage is around fifty percent.
• Among the different blockchains, the distribution of days between successive transactions is different for Flow than for others. This means that users of this blockchain who have had more than one transaction have done so at different intervals. This means that this blockchain was able to create more loyal users and get them to transact with this blockchain at different intervals.

Observation #1 : New users

• As expected, Ethereum attracted the most new users during this period. (First chart - left) Therefore, we removed Ethereum from the main charts to get a better overview of other blockchains.
• Algorand and Near are next, and Flow has managed to attract more users than Optimism and Avalanche.
• For the number of transactions of new users, the above order was followed, with the exception that Optimism is ahead of Flow in the number of transactions.
• In terms of the number of transactions made by new users, if we consider the average number of transactions per new user, Algorand ranks first.
• Looking at all users, Optimism ranks first and Avalanche second in terms of the average number of transactions performed by users. FLOW has the lowest average in this respect.

#2 : Active Days

In the second part of this analysis, we examine users' active days. Active days are days when the user has performed at least one transaction on that day. By removing users with high transaction counts (as described above), we obtain the following graphs and results.

#3 : Distribution of Days Between Consecutive User Transactions

In the last step, the main part of this analysis, we examine the distribution of the number of days between two consecutive user transactions in different blockchains. The histogram chart does not show users who have only one transaction and therefore the days between that transaction and their next transaction are Null, so the donut chart is used in all blockchains along with the histogram chart.