Introduction

To build your own blockchain networks and distributed applications, you can use Avalanche. Avalanche, a cryptocurrency platform developed by Ava Labs, is competing with Ethereum to become the dominant smart contract platform in the blockchain ecosystem.

When compared to other assets, such as bitcoin, whose value fluctuates, USDC is a fully-reserved stablecoin cryptocurrency that is meant to remain at par with the dollar. The cryptocurrency USDC is used in many different ways throughout the cryptosphere, although the most prevalent applications are in DeFi protocols and the trading markets. The USD Coin network is overseen by the Centre consortium, which was established by Circle and whose members include Coinbase and Bitmain (an investor in Circle) of the Bitcoin mining industry.

Method

Swap amounts will be compiled from fact event logs' Swap events. By mapping the Swap event to its corresponding pair of Transfer events and filtering on the USDC address as either input or output token, we can isolate only the swaps involving USDC. We will only allow one-time transactions, such as sending USDC from one wallet to another. To do this, we narrow our focus to the transactions in fact event logs that involve only a single USDC Transfer event. Then, we tally up the totals and count how many different addresses were used.

Mint & Burn metrics is recorded using Transfer events from fact event logs with the Null address as the recipient (0x0000000000000000000000000000000000000000).

The aforementioned metrics have assessed by hour and day since 7/1.

The queries have brought from the rmas#1206’ dashboard and modified.

Analysis

:hourglass_flowing_sand: Swap & Transfer Overview

✍🏻 Conclusion

As of Findings above, Avalanche Swaps vs Transfers since 1st July 2022:

• Swap operations are less common than transfers of USDC assets, and transfers have a higher average volume.
• Although the total volume of Burn actions was greater than that of Mints, the average volume of Mints was greater.
• Across the board, Mints, Swaps, Burns, and Transfers of USDC assets have been trending downward.
• The number of wallet swaps exceeds the number of USDC transfers.
• USDC minting and burning is done via the Circle wallet address. This makes it challenging to track on-chain which person or entity actually does the minting and burning at a specific time.
• As an alternative, we tracked USDC inflow and outflow from the Circle address and estimated the number of unique users per day who are sending USDC in and out of the Circle address (around 6 each).

About:

• Author: HaM☰d

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• Discord: 0xHaM☰d#8391

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• Twitter: @arjmandi_hamed

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• Email: h_arjmandi2012@yahoo.com

Examine Avalanche USDC swaps vs transfers and mints vs burns

Lets look at volume of USDC swaps vs transfer by hour since 7/1.

• What is the average amount of USDC transferred vs swapped?
• Show number of unique swapper addresses vs transfer addresses by day for USDC

Next lets look at mints and burns of pairs involving

• Lets look at the volume of USDC mints and burns by hour since 7/1
• How many unique wallets are minting and burning USDC by day
• What is the average mint vs burn for USDC by day
• Note anything else interesting about USDC transactions

Hey there 👋!

Firstly, I appreciate you sticking with it until the conclusion.

I'm Hamed, a civil engineering Ph.D.

student interested in data analysis.

I've made many similar dashboards and visualizations since I started at Flipside in January.

Please take a look at my various contact details and let me know what you think.

:mag_right: Findings:

As of Table right:

1. Total transfer volume is 10x higher than total swap volume.
2. Average transfer amount is much higher than the average swap amount (73x).
3. Swap transactions are a lot more frequent than simple transfers.
4. There are more swappers than USDC senders (transfer addresses).

:mag_right: Findings:

The above charts show the hourly and daily volume of USDC transfers and swaps within the Avalanche network since July. The majority of days show that Swaps is the leader in both the total number of transactions and the total number of users.

On the 8th and 9th of November 2022, the day of the market crash caused by the FTX and Alameda collapse, the number of swaps and transfers reached an all-time high. However, there is a clear peak in volume for both transfers and Swaps in late July and early September, respectively. Overall, the volume of USDC swaps and transfers on the Avalanche blockchain has been gradually decreasing.

:hourglass_flowing_sand: Mint & Burn Overview

:mag_right: Findings:

As of Table right:

1. Total burnt volume is about 1.5x higher than total Mint volume.
2. Average burn amount is higher than the average mint amount (2x).
3. Burn transactions are a lot more frequent than simple transfers.
4. There are equal users.

:mag_right: Findings:

The accompanying graphs show the hourly and daily distribution of USDC Mints and Burns within the Avalanche network since July. Up until late July 2022, mint activity of USDC assets was higher than its burns. However, after July 28th, the distance between the two widened dramatically due to a massive increase in the number of burned USDC. Interestingly, the average volume of USDC mints also had a big surge on the same day as the Burn volume rise. Moreover, as was already established, there are only 2 wallets for each action, and while on most days only 1 of them was burning or minting, there were also a small number of days where both of these assets of each action were actively completing USDC mints and burn transactions.

In a vein similar to that of swaps and transfers, burns involving USDC assets on the Avalanche network have recently seen a minor decline in activity.

:hourglass_flowing_sand: Transferring USDC Between Circle & Avalanche User Wallets Overview

:mag_right: Findings:

To estimate how many wallets are involved in minting and burning USDC in Avalanche, we can track transfers in and out of the Circle wallet address.

1. On average, around 5 addresses withdraw USDC to their Avalanche wallet from Circle per day (possibly recently minted tokens).
2. On average, around 10 addresses deposit USDC back to Circle per day (possibly to burn them).
3. There was a spike in deposit USDC back to Circle in Jul 28th to over $410M
4. In total over $1.3B USDC has deposited back to Circle by 1061 transactions, against to $733.83M withdraw USDC to their Avalanche wallet from Circle with 1085 total transactions.