Try Quests to earn AVAXFLOW User Retention vs Other Chains
What is the Question?🚨
How sticky are the users on Flow?
Create a detailed analysis comparing user retention on Flow vs. other L1 chains like Ethereum and Solana. How often do users who make a transaction come back and make another transaction one month later? How do monthly active users compare between chains?
Bonus: add a section of your analysis comparing retention specifically with regard to NFT purchases. How often do users who purchase an NFT come back and make another purchase one month later?
Analyzed Topics:
- Average Time Between Transactions of FLOW & Ethereum & Solana & Avalanche Users Since The Beginning of 2022
- Over Time & Overall Active Users of FLOW & Ethereum & Solana & Avalanche
- Time Between NFT Sales of FLOW & Ethereum & Solana & Algorand Users
- Over Time & Overall NFT Purchasers of FLOW & Ethereum & Solana & Algorand
Introduction🚩
What is FLOW?
Flow is a blockchain platform that originally was designed for gaming purposes, but has expanded since its launch in 2020. The flow blockchain enables fast, low-cost transactions and supports smart contracts. It powers blockchain applications including NBA Top Shot, a non-fungible token (NFT) offering.
More Info
What are L1 Chains?
Layer 1 refers to the base infrastructure of a blockchain. Nicknamed “the mainnet,” layer 1 protocols have distinct functionalities such as the ability to process and finalize transactions on its own chain. As the main network within their ecosystem, they define the rules.
More Info
Method⚡
In this dashboard, i compared FLOW to 3 other layer1 chains like Ethereum, solana and avalanche to see how is the user retention on them and what are active users doing on these chains and how often they are transacting over time since the beginning of 2022.
I mainly used fact_transactions table from FLOW, Ethereum, Solana, avalanche and algo database and for NFT activity i used ez_nft_sales from each database provided by Flipsidecrypto.
I analyzed the first part with avalanche and 3 others and replaced it with ALgorand in the second part of the analysis because there was not a table for Avalanche nft activity on Flipside database.
I analyzed all the data since the beginning of 2022
Dashboard made on ==2022-12-19==
Findings👀
- Between these layer 1s that i compared them together, as we expected, Ethereum has the highest number of active users on both monthly and daily basis than the other 3. Ethereum with over 60M active users over time is in the lead followed by Solana in the second place with over 20M.
- Recently in November, FLOW recorded its highest number of active users since the beginning of 2022 with over 5M active users and it was pretty close to ethereum in that month with passing solana and avalanche.
- November 21th until November 26th were hot months for FLOW and it has recorded most of its November active users in that 5 days.
Findings👀
- The over time number of active NFT purchasers on these 4 chains were bearish and decreased slowly day by day. We can see that Ethereum had the most NFT purchasers than the other 3 with over 3M purchasers since January 2022.
- Ethereum is also in the lead in terms of purchased NFTs within a month followed by Solana and FLOW in the second and third place respectively.
- FLOW nft pruchasers decreased a bit since the beginning of 2022 over time.
- In comparison of these 4 L1 chains active NFT purchasers, Ethereum is in the first place followed by Solana in second and FLOW in third and algorand in the last place.
Conclusion💡
- FLOW users are not transacting too often unlike Ethereum, Solana and Avalanche.
- The time between NFT sales on all chains are the same and its less than 1 day.
- FLOW recorded its all-time high number of active users on November 2022 since the beginning of 2022 and the number was pretty close to Ethereum active users!
- FLOW recorded more active users than solana and avalanche on June and November and November was its all time peak.
- The time between Active users on FLOW transactions is between 2 weeks until 1 month.
Findings👀
- In the above charts, i showed the time between users transactions of 4 popular L1 chains such as FLOW, Ethereum, Solana and Avalanche. As we see, it is the same situations on all chains in terms of the time between transactions except FLOW. On other 3 chains, it takes less than 1 day for a user to make another transaction but on FLOW, it usually takes 2 weeks until 1 month for a user to come and make another transaction.
- On FLOW, usually it takes between 2 weeks until 2 months for a user to make another transaction and is it accounting almost 75% of the whole FLOW time share. While in other hand, Solana users prefer to make another transaction in less than 1 day with a huge difference with the second place in number of stats. (96.2% of all)
- I think number of users for each chain is effecting this matter the most, as we see in other 3 chains except FLOW especially Ethereum, users mostly made a transaction after their previous transaction in less than 1 day, it is the same on Solana and Avalanche, but FLOW is different from these chains and probably it is because of Ethereum, Solana and Avalanche are more popular and have more users than FLOW and not gonna lie, FLOW is newer than them.
Findings👀
- In this section, i showed again the time between transactions again but this time, the transactions are NFT sales. I compared 4 L1 chains such as Flow,Ethereum, Solana and Algorand. I replaced Avalanche with Algorand because Flipside didnt have a table for Avalanche NFT Activity.
- The time between all chains NFT sales are all the same and less than 1 day.
- This less than 1 day case on algorand is accounting over 65% of the whole algorand time share.
- It seems users are very active on NFTs stuff on all L1 chains that i compared.
- As we expected, Ethereum is the most popular chain for NFTs with OpenSea marketplace, which is also the most popular NFT marketplace followed by Solana in the second place in terms of NFTs activity.