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@0xham3d_ethOne of the essential components of a successful business and marketing strategy is the ability to cultivate strong customer relationships and foster loyalty. The ultimate goal is to encourage repeat business while attracting a steady stream of new customers.
A key approach to enhancing customer retention and minimizing attrition lies in the analysis of actual behavioral data over time. Going beyond surface-level product data is critical for gaining the insights needed to develop strategies that reduce customer churn and create a sustainable competitive advantage.
This dashboard focuses on analyzing the retention cohorts of DEXs operating on Avalanche, as well as the user behavior of Dexalot. It provides a monthly evaluation of retention patterns and explores swapped volume trends, including the percentage of the initial volume retained over time.
Credits
My dashboard was inspired by 0xDataWolf and cloudr3n from whom I forked some queries to use as a basis for my analysis! Orig. dashboards:
Sojourner or Habitant
To exclude bots and contracts, we filtered out wallets with more than 10,000 transactions.
Our analysis revealed that most individuals were, in fact, sojourners. The charts above illustrate the cumulative count of new wallets based on their active duration (number of days active). A sharp decline is observed in the number of new users between one day and five or more days of activity. For DEXs, the number of active users drops to one-fifth of the initial count (553K → 95K). This decline is even more pronounced for Dexalot, with a 13.6x decrease (34K → 2.5K).
When looking at users active for more than 50 days, the numbers shrink even further—down to approximately 5.11K (0.01%) for DEXs and 113 for Dexalot. These figures suggest that the majority of users act as sojourners, leaving after just a day or two of activity.
Insights from New Users
The charts below highlight the behavior of new users—wallets transacting for the first time across DEXs on Avalanche and Dexalot. We define new active users as those with an active duration of at least 7 days and a last active duration of no more than 7 days.
For DEXs, the count of new active users is consistently low and has declined over time. In contrast, Dexalot has experienced significant spikes in new wallets, with an impressive 20x increase during certain periods.
Time-Based Cohort Analysis
Avalanche’s DEXs
The cohort table shows user retention over time, split by cohorts (monthly).
Pattern: Retention consistently drops month-over-month (e.g., Month 1: ~40%, Month 2: ~25%), stabilizing at lower levels in later months.
Some months show slight improvement, indicating events or initiatives may have temporarily boosted retention.
Dexalot
Dexalot’s retention cohorts also decline over time, but the drop-off is sharper in the earlier months compared to Avalanche’s DEXs.
Dexalot struggles to maintain consistent engagement, but slight upticks in certain months suggest external factors driving activity.
What is the average time interval between a user's initial and subsequent transactions?
For Avalanche’s DEXs:
A significant portion of users transact within 1–7 days, but the majority take less than 12hours.
For Dexalot:
A higher percentage of users transact quickly (within 1–7 days), showing greater initial activity but likely short-term engagement.
This data reflects that while Dexalot has more immediate activity, retention strategies are necessary to extend user engagement beyond the first week.
What is the average duration between transactions for users?
For Avalanche’s DEXs:
Many users have short durations between transactions (lass than 12 hours), indicating sporadic activity.
For Dexalot:
A higher proportion of users transact more frequently (e.g., within 1–7 days), suggesting more consistent short-term engagement.
Dexalot users display a shorter average time between transactions initially, but long-term retention remains a challenge.
Avalanche’s DEXs
The tables below present the percentage of swapped volume retained month-over-month.
Patterns:
Initial retention in Month 1 is relatively high, exceeding 100% in six months, while ranging between 37% and 68% for the other six months.
Notably, volume retention increased in most months, except for December 2023, March 2024, and May 2024.
Some cohorts demonstrate exceptionally high volume retention, potentially driven by favorable market conditions or specific incentive programs.
Dexalot
Swap volume retention starts strong in Month 1 but drops significantly in subsequent months between November 2023 and March 2024. However, starting in April 2024, volume retention shows a noticeable improvement, ranging from 55% to 106% month-over-month.
Notably, a significant spike is observed four months after July 2024, where swap volume retention reached an impressive 1,229%.
Overall Narrative
The dashboard highlights clear trends:
User Retention Challenges: Both Avalanche’s DEXs and Dexalot face significant drop-offs in user activity and volume over time.
Dexalot’s Short-Term Gains: Dexalot sees strong spikes in new users and trading volume, but struggles to retain users and sustain engagement long-term.
Behavioral Insights: Dexalot users transact more quickly initially but behave like “sojourners,” leaving after a brief period.
Need for Strategic Initiatives: Both platforms must address retention through targeted strategies, such as user incentives, engagement programs, or improved user experiences.