2. Daily Volume & Transaction Counts

Transaction on the Top 5 protocols have been splits into the following groups: Vault (GMX), LP (TraderJOE, Stargate) & Lending (Aave, Benqi)

1. Assets Under Management (AUM or TVL) of Top 5 protocols on Avalanche

Top 5 protocols by TVL were selected based on their ranking on DeFiLlama.com.

Average Economic Value per Transaction aka. Average Transaction Value

• Majority of users (43.5%) have an average transaction size of $100 → $1000
• ~24.9% of users transact between $10 → $100 while 18.6% transact between $1000 → $10,000.
• The average transaction value is $4,090 while the median transaction value is $97.9
• The low median transaction value shows that there’s a low barrier to transact (eg. low gas fees) which is a good sign for a healthy blockchain ecosystem.

In future analysis, other interpretations of transaction types can be explored (eg. to account for stickiness of borrow/lending as compared to a token transfer)

What is the Avalanche Blockchain?

Avalanche is a Proof-of-Stake (PoS) blockchain with:

• Near instant transaction finality, high throughput and low gas fees by utilizing the Snowman consensus protocol
• scalable with novel scaling technology enabling blockchains-as-a-service - Subnets
  • Subnets are custom, app specific blockchains which allows developers to fully customize their user experience, including choosing gas token, network validation, VM choice.

Official Links: Website - Medium - Twitter

Currently, many GameFi projects like DeFiKingdom, Crabada and DeFi projects like Dexalot are already developing new products on their own subnets.

AvaLabs have been consistently launching new products to enhance the Web3 user experience with Core App/Wallet & the native ETH/BTC bridge.

The Avalanche Foundation has multiple partnerships with media & gaming companies like GREE & Toonstar to develop Web3 entertainment and partnerships at an institutional level with Securitize tokenizing KRR Fund (link).

/h2Dashboard by @cloud_r3n

Analysis Method:

1. AUM/TVL of Top 5 AVAX protocols
2. Daily Volume & Transaction Count
3. Average Economic Value of per transaction
4. Transaction Statistics
5. Token Statistics
6. User Statistics

4. Transactions Statistics (Favorite Token, Highest Total Transaction Value, etc.)

5. Statistics on Token Transactions

3. Average Economic Value of each transaction

For this analysis, the Economic Value of each transaction is assumed to be equals to the usd value of the transaction itself. Only “to” transactions are accounted for in this query to prevent double counting.

Assumptions:

• For simplicity, only the Top 10 Liquidity Pools on TraderJOE, which represents ~80% of total TVL, has been used in this analysis

• Bridging transactions on stargate has been excluded from this analysis

• All major stablecoins are assumed to be all worth 1USD (eg. USDC, USDC.e, USDt, USDt.e, MIM, DAI.e)

• Deposits & Withdrawals from Lending protocols are calculated using the Mint or Burn Transactions

• Only the top few coins with high market cap on Avalanche has been accounted for in this analysis:

  (USDC, USDt, USDC.e, USDt.e, BUSD, MIM, AVAX, BTC.b, WBTC.e, WETH.e, GMX, PNG, JOE, QI, sAVAX, LINK.e)

Daily Volume by Transaction Type

• Avalanche Rush was announced by Avalanche Foundation on Aug’21

• This kicked started the bull market on AVAX as the daily volume was on an uptrend since Sep’21 till Jan’22.

• Daily Transaction Volume (in USD) peaked between Nov’21 to Jan’22

• The highest daily transaction volume recorded was on 22-Dec-2021 where it reached close to $200B

• Interestingly, the amount of Lending: Borrow, Lending: RepayBorrow, Lending: Deposit and Lending: Withdraw are rather similar. This could either be due to flash loans or auto-compounders stacking yield on single assets.

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Daily Transaction Count by Transaction Type

• Similar to the Daily Volume chart, Daily Transaction started increasing from Sep’21 till the peak between Dec’21 to Feb’22 before gradually declining.
• For now, the chart seems to bottom out at Oct’22 around 10k transactions a day.
• During the decline between Feb’22 and now, there has been 3 surges in daily transactions which corresponds to major crypto events occurring:

1. May’22 - Terra Luna Crash
2. Jun’22 - Three Arrow Capital & Voyager Digital
3. Nov’22 - FTX filed for bankruptcy

• Up to 60.5% of transactions are swaps on DEXs (eg. TraderJOE)
• The 2nd and 3rd most common transaction types are deposits & withdraws on lending protocols. This isn’t surprising as the top 2 TVLs are from lending protocols

To look at other time periods, adjust From_Date to the date of your choosing. Default date select is ‘2021-09-01’ as there’s some issues before ‘2021-08-15’.

Favorite ERC20 Token

• AVAX was the top favorite ERC20 token (36.9%) transferred by users based on usd value of all transactions made by the user.
• The 2nd and 3rd place is USDC and USDt respectively and since they are both stables, there’s no surprises there.

Highest total transaction value

• The address with the highest total transaction value is :0x279f8940ca2a44c35ca3edf7d28945254d0f0ae6 with close to $2 billion in transactions over the past year.

Transaction Vol & Transaction Count by Contract Address

• Contract Address with the highest transaction volume belongs to Aave’s WAVAX deposit token (aAvaWAVAX) followed by Aave’s StrategyAaveNative contract which seems to handle deposits/withdrawals & borrows/repays - Snowtrace Link

• Contract address with the highest transaction count belongs to trader joe’s router followed by TraderJOE’s USDC-AVAX LP.

Cumulative Transactions by Token

• AVAX (or WAVAX) has the top spot for the highest cumulative transaction count with 52.1% of all transactions
• 2nd and 3rd spot belongs to USDC and USDC.e respectively

Transaction Volume by Token

• AVAX (or WAVAX) also has the top spot for cumulative transaction volume with 66.4% of all transaction volumes in USD.
• Surprisingly, DAI.e seems to be the 2nd followed by usdc.e

6. User Statistics

A brief overview on user number across the top 5 protocols. Note that for this analysis, the user count is independent between protocols or transaction types, i.e. the same address may be double counted 3 times if the user interacts with 3 protocols.

Daily Active Users by project:

• Similar to the charts above on transaction volume and transaction counts, the peak in daily active users by each project occurred between Dec’21 to Feb’22.

• The highest daily active user was 40k on 22-Dec-2021 (close to 32k were all on TraderJOE)

• Since then, the user count has been on a gradual decline and have since been stabilizing around 10k in Nov’22

• The bulk of daily active users are on traderJOE (64.9%)!!! whereas a smaller amount of 22.8% is on Aave.

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Daily Active Users by Transaction Type

• Once again, there isn’t much new info here too. The majority of users are performing LP: Swap transactions while the 2nd most common transaction type is Lending: Deposit and followed by Lending: Withdraw
• On a side note, the similarities between the Transaction Count by Transaction Type and Daily Active Users per Transaction Type chart shows that most users are behaving similarly as we would usually expect transaction counts to be a function of the daily active users on a protocol.