Analysis Methodology

To determine how much of the daily transaction volume belongs to the DeFi apps in Algorand, we obtain the app IDs associated with these four main DeFi apps(Folks Finance, AlgoFi, Tinyman, and AlgoDex) in AlgoExplorer.

Each Algorand main program consists of a set of modules and apps that are deployed on the Algorand network, and when each of these modules is invoked, a transaction is recorded in Algorand.

These transactions can be used to determine which program each group of transactions belongs to.

DeFi Daily Usage

Following the above explanations, we obtain the volume of Algorand's daily transactions since the beginning of this year by program type. We consider any transaction that does not belong to one of the four main DeFi programs as part of the Non-DeFi group. Since the majority of transactions conducted in Elgorand are non-DeFi, we will remove them for a more detailed analysis and examine only the transactions that belong to the

Folks Finance, AlgoFi, Tinyman, and AlgoDex.

The following two diagrams are the result of this step:

Key Findings

• The volume of DeFi transactions is smaller than that of other transactions, so that in the best case 25% of daily transactions belong to DeFi.
• Among the four main DeFi apps, Tinyman is the top performer in terms of number of transactions, followed by AlgoFi by a small margin.
• Two DeFi apps, AlgoDex and Folks Finance, comprise a very small volume (less than one percent) of daily transactions.
• In the last few days (middle days of July), the volume of DeFi transactions has decreased and the usage share of AlgoFi and TinyMan is almost equal.

Fee Analysis

In the next step, we will examine the fee generated by each of these programs. However, given the stability of transaction fees in Algorand, we assume that the fees generated are fully proportional to the daily usage graphs of the programs, i.e., each program that was accessed more frequently generated more fees. The following graph shows the correctness of this assumption (note that the graph is drawn with a logarithmic scale to reveal the low volume of the AlgoDex and Folks Finance programs).

• On some days, the amount of the fee generated by DeFis has increased compared to its usage (e.g., June 13), which also indicates that on some days the volume of token exchanges is so high that DeFis' total fee from its daily usage increases.
• In most cases, the amount and percentage of the generated fee is completely in line with the volume of calling programs.

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Is the Price of the ALGO related to the volume of DeFi usage?

As a final analysis, we examine whether or not the rise and fall of the algo price has an impact on how much users use DeFi.

Check out the chart below to discuss it later:

• For some programs, such as AlgoDex, increasing or decreasing the price of Algo does not have much effect on day-to-day adoption.
• For Tinyman, it is important to see that as the price of Algo increases, so does its usage.