Assessing NEAR Ecosystem's Inflows and Outflows, and Number of Swaps
An entry for MetricDAO's Bounty Program: NEAR - 4. New and Improved Transparency Report
Patterns can be observed from both Q3 and Q4 DEX Swaps, such as spikes and stagnations in the number of DEX Swaps. Also, Q3’s Average DEX Swaps is more than Q4’s.
This implies that there may be a decrease in overall activity in NEAR exchange or a shift in user preferences towards other types of exchanges.
Same observation is seen with the NEAR Tokens Inflows chart, spikes and stagnations are present. Q3’s Average NEAR Token Inflow is slightly more than Q4’s.
Likewise, presence of spikes and stagnations can be seen on both Q3 and Q4 NEAR Tokens Outflows. Q3’s Average Token Outflow is more than Q4’s.
Placing NEAR tokens on NEAR decentralized exchange could potentially help to increase the liquidity and trading volume of the tokens, which could in turn help to support the overall ecosystem of the exchange. This is because more liquidity and trading activity on an exchange can help to attract more users and potentially drive further adoption of the exchange.
Based on the information provided, it appears that there may have been a decrease in overall activity on the NEAR exchange between the third and fourth quarters of 2022. This is indicated by the lower average number of DEX swaps and NEAR token inflows in the fourth quarter compared to the third quarter. Additionally, the presence of spikes and stagnations in the number of DEX swaps, NEAR token inflows, and NEAR token outflows suggests that there may have been fluctuations in trading activity on the exchange during this time period. It's also possible that there has been a shift in user preferences towards other types of exchanges, which could explain the decrease in overall activity on the NEAR exchange. However, without more detailed information, it's difficult to draw any definitive conclusions about the reasons for the observed patterns.
Inflows, outflows, and the number of decentralized exchange (DEX) swaps are all important metrics of the overall health of a decentralized exchange. Inflows and outflows refer to the movement of tokens into and out of the exchange, respectively. The number of DEX swaps, also known as transactions or trades, refers to the total number of times that tokens are bought and sold on the exchange. These metrics are important because they provide insight into the level of activity and liquidity on the exchange.
A healthy decentralized exchange will typically have a good balance of inflows and outflows, with a steady stream of transactions taking place on the exchange. This indicates that there is a high level of liquidity on the exchange, which can help to attract more users and support the overall ecosystem of the exchange. Additionally, a high number of DEX swaps can indicate that there is a significant amount of trading activity taking place on the exchange, which can also support the overall health of the exchange.
On the other hand, a lack of inflows and outflows or a significant imbalance between the two can indicate a lack of activity or interest in the exchange, which could potentially harm the overall health of the exchange. Similarly, a low number of DEX swaps can indicate a lack of trading activity on the exchange, which could also harm the overall health of the exchange. Overall, inflows, outflows, and the number of DEX swaps are important indicators of the level of activity and liquidity on a decentralized exchange, and can provide insight into the overall health of the exchange.