Question

How have the number of transactions changed over time for each Protocol? Also how much in fees have been spent on transactions relating to each protocol? Other things that can be explored are what type of transactions are each protocol producing, or has the price of ALGO been an influence on the number of transactions produced by each protocol. 

Methodology

• Look into the fees on each protocol
• Look into the transaction total on each protocol
• See if there is a correlation to the price of ALGO

Introduction / Glossary

What is Algorand?

Algorand is a blockchain that has its own cryptocurrency, ALGO. It has some special features for instance finality that means once something is added to the blockchain it cannot be removed. The blockchain itself works as a payment processor and one of the major benefits as well is that it only takes one ALGO to begin staking and earning rewards, while also keeping the blockchain secure.

Protocol Transaction Analysis

The above 3 graphs are looking strictly into the different transactions of the 4 different protocols. To give a true comparison I decided to add in the “other“ category so all of the other apps would be accounted for and could give a bigger picture on true performance. First thing we can notice is that algofi and tinyman apps account for nearly 50% of the transactions, where other accounts for nearly the other 50%. Folks finance and Algo dex do not even account for 1% of the total transactions. If you add them both up they are around .5% of the total transactions. This becomes very visible when looking at the third graph and their colors are barely noticeable especially when being compared to the other two categories and other. What we can also notice is the downward trend that the total transactions are taking. As we go into a bear market it is very common for there to be less transactions because in general there is less activity.

Protocol Fees

The first unsurprising note to start off on is that the total of fees as a comparison follow the same order of largest to smallest that the pie chart will show. What I find most interesting is that although the total amount of transactions clearly has a high positive correlation between the total fees the graphs of the total transactions and fees look very different. The trend line for the fees is still downward but it seems that it will pleatue and then spike over and over without really decreasing.

Conclusion

1. The total of transactions per protocol has decreased overall and individually and this most likely due to a bear market.
2. Algofi and Tinyman are the two most active out of the 4 protocols being analyzed having the most fees and the most transactions
3. Algo Dex and Folks Finance have been hardly used during 2022
4. The price of ALGO dropped before the actual crash and so have the number of transactions, although the bear market could be part of the reason the blockchain has not seen an uptrun yet