Conclusion And Key Findings:

**This analysis provides a comprehensive examination of liquidity pools in the Avalanche blockchain ecosystem, shedding light on various trends in user engagement and transactional activities. The analysis presents data collected between February 2021 and August 2023. December 2021 was a critical month with the highest influx of users participating in liquidity addition, with a remarkable count of 3,500 users. Further exploration into transactional efficiency reveals November 2022 as the standout period, boasting the highest average number of transactions per user at an impressive 2.97.** **A deeper dive into transaction volumes highlights December 2021 as a peak moment, recording 5.98k transactions. The cumulative analysis from February 2021 to August 2023 indicates 21.6k transactions aimed at liquidity enhancement within the Avalanche ecosystem.** **The financial landscape reveals a notable surge in March 2022, with a peak USD volume of 153.78 million, while the cumulative USD volume allocated for liquidity provisioning over the entire period amounts to a substantial 437 million USD. Notably, March 2022 also shines as the month when the highest average USD volume per user was observed, with each participant contributing an average of approximately 151,000 USD.** **Trader Joe v1 emerges as the leader in user engagement, attracting 10.3k users, closely followed by Pangolin, with 1.94k users. Regarding transactional activities, Trader Joe v1 continues to dominate, witnessing 17.4k liquidity transactions, while Pangolin follows with 3.3k transactions.** **Monetary involvement is also significant, with Trader Joe v1 generating the highest USD volume associated with liquidity provision at 391.6 million USD. KyberSwap v1 takes the lead in average USD volume per transaction with 39.8k USD, followed by Trader Joe v1 with 20.8k USD.** **Top liquidity pools based on USD volume also emerge: Akita/Dai.e reserves the first position with 64.5 million USD, followed by Sins-Wavax with 26 million USD.** **User engagement varies based on USD liquidity volume, with a considerable number of users (3.3k) contributing within the range of 1k to 10k USD, accumulating to 13.3 million USD. Notably, a small group of 24 users ventured into high-level liquidity addition, surpassing the 100 million USD mark and collectively contributing 173.93 million USD.** **Exploring the evolution of user involvement, December 2021 stands out as the month with the highest influx of new users (3.4k) entering the liquidity provision realm. Since January 2023, 487 new users have joined the Avalanche ecosystem through liquidity provision.** **Trends in different project types mark diverse user activities within the liquidity ecosystem. Notably, Dex activities and Defi projects gain significant attention, reflecting user interests in trading and financial activities.** **The analysis classifies users based on their engagement tags to gain insights into platform usage patterns. The "active on Avalanche over the last 7 days" tag dominates, encompassing 11,600 liquidity providers, while the "active on BSC over the last 7 days" tag follows with 3,180 users.**

Avalanche Liquidity Insight