Introduction

In this analysis, You will read about AXLUSDC. Recently, Circle announced the implementation of an IBC-native USDC, inserting itself into an ecosystem where axlUSDC currently dominates.
I Tracked Satellite bridge activity strictly related to axlUSDC transfer.
We want to know Which app-chains have the most/least flows of axlUSDC. Also, I looked at Osmosis specifically, and analyze how dominant axlUSDC has become compared to both ATOM and other USDC assets in trading and pools.

Analyzed By Hess - Reading Time Almost 12 Min.

Method

Axelar:

I used my previous method to find the Axelar satellite bridge transfers. You can find it here: .

I only filtered the AXUSDC token to track destinations.

Osmosis:

In order to find transfers from Osmosis, I used osmosis.core.fact_transfers table. The AXLUSDC token address is ibc/D189335C6E4A68B513C10AB227BF1C1D38C746766278BA3EEB4FB14124F1D858. I put the AXLUSDC contract in the currency column and extracted the receiver address. Each user address starts with the chain name. So I hardcoded chains based on receiver addresses.

case when RECEIVER like '%axelar%' then 'AXL' when RECEIVER like 'cosmos%' then 'Cosmos' when RECEIVER like '%terra%' then 'Terra' when RECEIVER like '%evmos%' then 'Evmos' when RECEIVER like '%kujira%' then 'Kujira' when RECEIVER like '%juno%' then 'Juno' end as chain

Also, I used the Osmo trade website and found Pool IDs related to Atom, AXLUSDC, and other stablecoins. I used my findings in the Liquidity pool action table.
In the end, I used the fact swap table and joined it with the DIM label table for token names. Then filtered only Stablecoins and atoms. Joined my findings with the Fact price table to calculate the swap volume.

Transfer AXLUSDC from Osmosis

The highest number of users transferred their AXLUSDC from Osmosis to AXELAR. About 6000 Unique users transferred their AXLUSDC to AXELAR. The second popular chain with a huge difference from AXELAR is Kujira with 491 Unique Users.

Liquidity Pools

Remove Liquidity

Swaps From and To AXL.USDC

So far, I examined the transfers and Pools. Now It’s time to see how swaps from and to AXL.USDC changed over time. Before AXL.USDC swapper to and from Atom was higher than other stablecoins and we couldn’t compare any tokens with Atom but after AXL.USDC, The total number of swappers to and from AXL.USDC increased and now we can compare a token with Atom swappers.

Based on Liquidity providers, Until April Most liquidity providers added liquidity in USDC and Atom pools. But after that, AXLUSDC increased and USDC → Osmo disappeared.
recently, In October, The total number of liquidity providers of AXLUSDC became near to Liquidity providers of Atom. Overall, Atom → Osmo pool has 101K Unique users and AXLUSDC → Osmo has 13K unique users.

Full Analysis

A Summary of the most important findings

Users transfer their AXLUSDC via satellite most to Ethereum and Polygon. The lowest Number of transactions went through Aurora and Stargaze.
Based on Volume, Still, Ethereum and Polygon are popular destinations and Aurora and Stargaze are less popular.
From Osmosis, The popular destination based on Volume and Transactions is the AXL chain.
When the AXLUSDC → Osmo pool is activated, The weekly share of the ATOM → Osmo pool decreased and AXLUSDC increased by up to 30% based on transactions.
Based on Volume, When AXLUSDC → OSMO is activated, The added liquidity volume was higher than other pools.
In comparison to Stablecoins and Atom token, 40% of swaps was swap to and from AXLUSDC.

What is Osmosis?

Osmosis is a decentralized cryptocurrency exchange designed for the Cosmos ecosystem allowing investors to grow their crypto investments through a powerful yield farming strategy.

What is Axelar?

Axelar is a cross-chain communication network secured by the AXL token via proof of stake. AXL is the native utility token that powers the Axelar network, built using the Cosmos SDK. As an interoperability network, the AXL token is a chain-agnostic asset that has representations on multiple blockchains.

Transfer AXLUSDC from AXELAR

Between August and the beginning of September, The most popular destination was Kujira but after that The total number of unique users that transferred their AXLUSDC to Polygon and the Ethereum chain. Overall, Ethereum, Polygon, Avalanche, and Kujira are three popular destinations from Axelar since July. The less popular chains were Aurora, Stargaze, Evmos, and Binance.

Let’s examined the weekly share of chains. As you can see, In August, The weekly share of Kujira was up to 41%. Before that Polygon and Ethereum with 40% of transactions were popular. During the Kujira trends, The share of Polygon and Ethereum decreased to 11%. After August, The weekly share of Kujira decreased and Polygon and Ethereum shares increased. It seems Osmosis and Ethereum had the highest growth over time. Avalanche shares didn’t change over time and had 6-10% of transactions.

Overall, 23% of transactions were transferred AXLUSDC from AXELAR to Osmosis. Since August 4, The weekly number of transactions to Kujira increased significantly until September 12. Meantime, The weekly transactions to Ethereum increased. Osmosis was in first place all week. More Unique Users bridged their AXLUSDC to Ethereum and Polygon but based on transactions Osmosis is in the first place.

Based on average weekly transactions per user, Over time, bridges to Osmosis had the highest number of transactions with 10 bridges per user weekly. Fewer users bridged their AXLUSDC to Aurora and Stargaze. There were too many ups and downs in User’s average transactions.

Bridges AXLSUSDC from Axelar via Satellite to Ethereum has the highest volume. It means the highest volume went through Ethereum. Ethereum had a huge difference from chains. The second most popular chain based on volume in USD was Polygon with 36M US dollars. The third one is Osmosis with 25M US dollars.

The average weekly volume of AXLUSDC that bridged to Ethereum was 47K US dollars. The highest average in comparison to other chains. With a huge difference, Juno with 6.5K US dollars is in second place. Over time, The average volume to Moonbeam dropped more than other chains and It seems Avalanche had the highest growth in average volume.

The Weekly share of transactions shows that up to 96% of transactions went through the Axelar chain. We can’t compare it with Axelar. Their weekly share had a huge difference and we can see surly say that AXELAR is the most popular chain to transfer AXLUSDC from Osmosis.

From Daily shares, we can understand better how the AXLUSDC → OSMO pool increased over time. Since May, Up to transactions have been for the Atom → Osmo pool. But after that, The Daily share of Atom decreased to 50-55% and AXLUSDC increased. up to 34%. Recently, In October, The AXLUSDC shares increased up to 63% and Atom → OSMO decreased to 25-30%. I think in the next three months, AXLUSDC will take all shares.

One of the important parameters is Volume. Let’s examine how Add Liquidity Volume changed over time. Until May, All Users volume went through Atom → Osmo and USDC → Osmo pool but when AXLUSDC → Osmo is activated, The daily added liquidity volume on this pool increased significantly and tool Atom → Osmo and USDC → Osmo places. The average Volume of USDC → OSMO was higher than other pools But the second place is AXLUSDC → Osmo with a 548 US dollars average per day.

The Daily share of transactions per pool shows the daily share of AXL.USDC is 10-20%. Fewer Users removed their liquidity on AXL.USDC but the higher percentage of transcation related to Atom → Osmo Pool. This chart proves how AXL.USDC → Osmo is popular among users because fewer users removed their liquidity in comparison to other pools and added liquidities.

Even based on volume, less volume was removed from AXL.USDC → Osmo pool. The removed liquidity volume of Atom → Osmo, USDC.grv → Osmo, and DAI → Osmo was higher than AXL.USDC → Osmo. Overall, Users removed 142M US dollars from the Atom pool. The second place is USDC → Osmo pool with 78M US dollars.

Before May, The weekly share of swap transactions to Atom was Up to 98%. But after that, The weekly share of AXL.USDC increased and the share of Atom decreased. Recently, The weekly share of AXL.USDC increased. up to 40% and Atom shares decreased to 53%.

It is interesting that when the AXL.USDC announced The total swap volume to and from AXL.USDC increased significantly and became similar to Atom. The other Stablecoins volume is not too much and is the key rival of AXL.USDC is an atom token.
Until May, Atom had the highest average swap volume to and from. But after May, The highest swap volume was for AXL.USDC. Over time, AXL.USDC was in first place and didn’t change.
DAI.grv had the lowest average volume. As you can see, USDT.grv had the highest growth in average swap volume. AXL.DAI is in third place based on the average swap volume from and to the token.

Conclusion

So far, I analyzed five parameters for AXL.USDC.
Transfers from AXELAR
Transfers from Osmosis
Add Liquidity
Remove Liquidity
Swaps From and To AXL.USDC

In all sections, When AXL.USDC is activated, As soon as possible took its place, and increased its share in daily transactions and volume. The Main question was AXL.USDC

Soon to be forgotten? I can say we will hear more about AXL.USDC. In comparison to popular like Atom, This token has so many things to say!

THANK YOU FOR READING!

ALL CODES AND CONTENTS WERE WRITTEN BY HESS.

:bird: Twitter: @hessaminanloo

:flying_disc: Discord: hess#0890

:calendar: Analyze Date: 2022/NOV/5

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