Avalanche Ecosystem Growth
In this analysis, we will explore the Avalanche Ecosystem. By analyzing the Avalanche Labels data, we aim to identify the sectors within the chain that exhibit significant growth in user activity, transaction volume, and liquidity volume over time. To present this information clearly, we have created separate tabs for each sector and listed the projects and protocols that contribute the most to their growth.
We have also determined which sectors, projects, or protocols have the most engaged and loyal users. We compared the number of transactions per wallet across different sectors and projects/protocols to achieve this. Furthermore, we measured the retention rate of users over time for each sector and project/protocol to gain insights into user loyalty.
Based on the platform types, Dapps exhibited the highest retention rate, with 11%. This indicates that of the users who engaged with Dapps between January and December 2022, approximately 28,000 users returned to perform additional transactions. Following Dapps, NFTs and DEXs displayed the next highest retention rates.
The lower retention rates observed across the platform suggest that new users are more active on the Avalanche chain than existing users.
Users and Transactions
In terms of attracting new users to the Avalanche chain, Defi platforms emerged as the top performers, drawing the highest number of new users. Following closely behind were Layer2 platforms, which welcomed 376K new users. Until March 2023, the Dapp platform held the majority of new users. However, as time progressed, the shares of Defi and Layer2 platforms witnessed an increase, eventually surpassing the Dapp platform, which experienced a decline and reached its lowest point.
Among the platforms in the Avalanche Ecosystem, DEXs stood out with a substantial volume of nearly 7.5 billion US dollars. The peak volume occurred between January and March 2023, with a weekly total of around 700-800 million US dollars.
Following DEXs, Defi platforms also experienced a comparable volume of transactions. NFTs recorded the lowest volume on the Avalanche chain among the different platform types.

Important Notes
-
I have excluded "Trader JOE" from all my analyses. As we know that Trader JOE has the highest number of transactions, users, and volume, and its dominance tends to overshadow other platforms in the charts. By removing Trader JOE from the analysis, we can better visualize and understand the performance of other platforms within the Avalanche ecosystem.
-
I apologize for the large number of charts presented. Given the information in the bounty description, visualizing the data this way was the most effective way to convey the insights derived from the analysis.
Regarding Transactions, Defi platforms experienced the highest number of transactions, particularly after March 2023, when the total weekly number of Defi transactions surged from 30-40K to 295K. Until May 2023, most transactions flowed through DEXs.
Regarding user activity, NFTs (Non-Fungible Tokens) displayed an intriguing pattern with an average of 8 transactions per user, indicating significant engagement and involvement in NFT-related activities. Following NFTs, DEXs exhibited an average of 3.7 transactions per user, while Defi platforms demonstrated an average of 2.8 transactions per user, securing the subsequent positions in terms of user activity.
How Retention was Calculated?
A consistent method was applied to calculate the retention rates across all analysis parts. Initially, the users who engaged with the platforms between January and December 2022 were identified. Subsequently, their activities were tracked from January to June 2023. Users who returned to perform additional transactions or continued to use the platforms during this period were considered retained users.