Analysis

As we analyze the on-chain data for the Avalanche blockchain from the start of 2022 to the beginning of 2023, we observe a significant decline in swap activity, including the number of users and the value of tokens swapped. In 2022, the majority of swap volume was dominated by Trader Joe V1 and Pangolin DEXs. Since the onset of 2023, Trader Joe released Trader Joe V2, which has surpassed Trader Joe V1 in terms of users and swaps. However, it has yet to overtake Trader Joe V1 in total volume, except for a brief period recently. Additionally, in 2023, Woofi DEX emerged as a strong competitor, capturing a considerable portion of the DEX market share and even outperforming Pangolin in some weeks. When examining user activity levels, we find that most users are active for only one or two weeks on Avalanche DEXs, with the median user being active for just one week, and the average user for 1.8 weeks. This indicates a relatively short engagement period for users on these platforms. In terms of total volume swapped on the decentralized exchanges, we see a wide range of users, from small to large. There are numerous small users contributing to the ecosystem, while a handful of large users account for the vast majority of volume. This disparity is evident in the median swap volume for an Avalanche decentralized exchange user being $82, compared to the average user swapping nearly $25,000. In conclusion, the on-chain analysis of the Avalanche blockchain reveals a dynamic landscape of DEX activity, characterized by shifting market shares, varying user engagement levels, and a diverse range of users contributing to the overall swap volume.

Avalanche Dex Swap Metrics