What is Flow?

Flow Blockchain is a public, open-source blockchain platform built to meet the needs of developers, businesses, and users. It is designed to provide a secure, scalable, and extensible platform for developers to build and deploy decentralized applications (dApps) and smart contracts. It is developed by the Flow team, which is led by the co-founders of Dapper Labs, the team behind CryptoKitties. Flow Blockchain has a unique approach to scalability and security, making it an ideal choice for developers looking to create apps that can scale to meet the demands of the market.

What is user retention?

User retention is the measure of how many users return to an online platform, application, or website over a given period of time. It is used to gauge the success of a product or service, as it indicates how well the business is engaging and retaining users.

Introduction

Welcome to the Flow User Retention dashboard! In this analysis, we will be examining how sticky Flow users are compared to those on other L1 chains like Ethereum and Solana. Specifically, we will be looking at how often users who make a transaction come back to make another transaction one month later. We will also be comparing the number of monthly active users between the different chains.

Additionally, we will delve into retention specifically with regard to NFT purchases. We will be exploring how often users who purchase an NFT on Flow come back to make another purchase one month later, as well as comparing this data to NFT retention on other L1 chains.

Through this analysis, we hope to gain a better understanding of user retention on Flow and how it compares to other L1 chains. So, let's get started!

Total/New Wallets by Chain

Analysis

Flow, Ethereum, and Solana have seen the creation of 9 million, 150 million, and 15 million wallets, respectively. While Ethereum and Solana have significantly larger user bases, Flow has still attracted a significant number of users. However, data shows that the weekly creation of new wallets on all three blockchains has declined during 2022. It is possible that this decline is due to market conditions or changes in the overall popularity of cryptocurrency. Overall, the data suggests that user adoption for these blockchains may be slowing down, at least in the short term.

Active Wallets by Chain

Analysis

Flow has stable, 5-digit active user numbers with occasional spikes. Ethereum has seen a small decline in active users since the start of 2022. Solana's active users dropped from 800,000 weekly to 400,000 since May 2022. The causes for the changes in active users for Ethereum and Solana are unknown and require further analysis.

User retention by blockchain

Analysis

• 66% of Ethereum and Solana wallets only transacted in a single month, potentially indicating high turnover or infrequent usage among users on these platforms.
• Only 16% of Solana wallets have transacted in 3 or more months, potentially indicating a small, dedicated user base or high churn rate on the platform.
• 50% of Flow wallets have transacted in at least 2 months, potentially indicating a more stable user base or features that keep users engaged on the platform.

Analysis

Based on the data provided, it appears that a significant portion of Solana wallet holders who have purchased NFTs (66%) only did so within a single month. This is a higher percentage compared to Ethereum (57%) and Flow (51%) wallets. On the other hand, Flow seems to have the highest percentage of NFT-buying wallets that have purchased NFTs over a longer period of time, with a significant portion buying NFTs for 5 or more months. This information suggests that Solana wallet holders may be more prone to purchasing NFTs on a short-term basis, while Flow wallet holders may be more inclined to purchase NFTs as long-term investments.

Conclusion

User retention, or the percentage of users who continue to use a product or service over time, is an important metric for businesses and organizations to consider. High user retention can be a sign of a product or service that is meeting the needs of its users and providing a good user experience. On the other hand, low user retention can be an indication of a product or service that is failing to engage or satisfy its users, leading to a high churn rate. In the case of Flow, Ethereum, and Solana, the analysis shows that Flow has a relatively stable user base, with a significant portion of users returning to make transactions over multiple months. This suggests that Flow may be providing a good user experience and retaining a high percentage of its users. In comparison, Solana appears to have a higher turnover rate among users, with a larger portion only making transactions within a single month. This could be an indication of a lower level of user satisfaction or engagement on the Solana platform, leading to a higher churn rate. Additionally, the data shows that Solana wallet holders seem to be more prone to purchasing NFTs on a short-term basis, while Flow wallet holders appear to be more inclined to make NFT purchases as long-term investments. This difference in purchasing behavior could be influenced by a variety of factors, including the specific types of NFTs being offered on each platform, the motivations of the users, and the overall popularity and adoption of NFTs on each platform. Overall, the analysis suggests that Flow may have a more stable user base and a higher level of user retention compared to Solana, at least with regard to NFT purchasing behavior.