Conclusion

In conclusion, the analysis of the liquidity pool and swaps activity of the JUNO token before and after the Cosmoverse conference has shown that although the token has had overall positive net liquidity since the event, its price has not reflected the waves of inflows to the network. It is worth mentioning that the difference between inflows and outflows has not been too explicit which might indicate that the conference did not majorly affect the project. The swaps activity has also demonstrated that the volume after the conference almost halved compared to during and before the event, with swapping from the token being higher compared to swapping into it. This indirectly shows a lack of interest in the project, and users tend to preserve the value of their assets by swapping them into the native tokens of ATOM or OSMO, or with a more bearish viewpoint, into the stablecoins. Last but not least, it is worth mentioning that the whole global financial markets, as well as the crypto industry, are going through a harsh downtrend. In other words, the fundamental developments of smaller projects are not instantly visible in their price action and their user activity.

Liquidity Pool

Introduction

Cosmoverse is the annual community-driven conference to bring awareness and education to the Cosmos ecosystem. This year’s conference was held in Medellin, Colombia between the 26th and 28th of September, and multiple announcements were made throughout the event showcasing the roadmap of Cosmos itself and many other projects built on top of this layer1 blockchain.

This analysis dives deep into the liquidity pool and swaps activity of a specific token, determined using the parameter on top of the page, before and after the Cosmoverse 2022 conference.

Methodology

The required data for the analysis of a token’s liquidity pool and the swaps behavior were selected from the fact_liquidity_provider_actions and fact_swaps tables of the Core schema of the Osmosis database. Two actions of pool_joined and pool_exited were considered as providing and depriving liquidity to the pool, respectively. The transactions were filtered using the symbol of each token by joining the aforementioned tables with the dim_labels table. To obtain the U.S. dollar price of each token, the swaps transactions into and from that token with USDC as its pair were used.

> All the volumes and price data are in USD. > > It is worth mentioning that this dashboard aimed to be self-explanatory in a way that the visualizations were simple to understand without providing further insights. However, a summary of general insights that are extractable from the presented charts has been provided. Also, in the conclusion section of this analysis and at the end of the dashboard, a summary of information perceived from the charts for the JUNO token has been provided

Swaps

List of Tested Tokens

The following tokens have been tested using the token parameter above:

ATOM, OSMO, ION, JUNO, EEUR, EVMOS, STARS, CRO, SCRT, AKT, HUAHUA, CMDX, and XPRT.

Feel free to change the token parameter with the symbol of your desired token to investigate its liquidity pool and swaps activity.

Time Frequency

The time frequency of this analysis was divided into the following categories:

• The conference itself happened between the 26th and 28th of September, and these days were labeled as the Event;
• After the conference was considered the days from Sep 28 until the day before the current day to remove incomplete data;
• For the Before conference data, an equal number of days since the event (After) were counted backward to have the same window for the measurements of the averages and the daily metrics;

Insights

Here are some tips when viewing the following charts that could be generalized for every token:

• Every event generates hype around a particular ecosystem or project and there is a high chance that economic activity increases during that event. However, for better analyzing the impact of the announcements during the conference, it is more important to compare the aftermath of the event with the values before that;
• Currently, smaller projects and even blockchains are heavily correlated to the movements of Bitcoin and the whole crypto market in general. As a result, price fluctuations or swaps activity might directly be affected by the drop or increase in the price of BTC, despite the ongoing developments in the fundamentals of each project or token;
• The volume of injected or extracted liquidity into or from the pool of each token shows its strength and usability among the users. From another perspective, when providing liquidity means that users believe in a project and tend to preserve their assets in the form of one particular token instead of pooling out them and trading them with other more favorable assets;
• The swaps activity is another indication of a project’s health. Generally, the activity increases on the first day of each conference or event, due to the fact that almost every major talks or announcements happen on the first day;
• If the values for swaps from the designated token are higher than the values for swaps to that token, then that is an indirect indication of a lack of interest in that token and project. In other words, users rather not hold their tokens and are willing to trade them for other tokens;
• In terms of swap pairs, generally, if users swap from the selected token to stablecoins, that means they embrace a relatively bearish sentiment and believe the value of this token will drop in the near future. The opposite is also true. Swapping from the selected token into native tokens such as ATOM and OSMO is more positive, or less bearish to say the least since there is a possibility that the liquidity will transfer from one token into another in the same ecosystem;
• In a more holistic view, swaps of a token into another token within the ecosystem, other than the native token or the stablecoins, demonstrate the interoperability between the projects. Also, it shows that users are actually utilizing the tokens of an ecosystem and not just trading them to gain profits.

Swap Pairs