INTRODUCTION

A blockchain called Flow was created with excellent scalability without the need of sharding methods. With this, users on the blockchain may complete transactions quickly and cheaply. The blockchain was specifically created for decentralized apps (dApps) that require very high scalability, like NFT platforms. The blockchain has been used in crypto play to win games as well, giving players a quick gaming experience. The blockchain was built by Dapper Labs in response to several problems with Ethereum's congestion. The NBA Top Shot, a game that its parent firm developed, is one of many crypto games that are currently hosted on the blockchain. Due to its great scalability and quick speed, the blockchain is also accessible to developers who want to build dApps.

The capacity of a business or product to keep customers over time is referred to as customer retention. If a business or product has a high customer retention rate, it implies that consumers keep utilizing or repurchasing that good or service. In Q3 and Q4 of 2021, retention rates for cryptocurrency applications were steadily higher than those for stock trading apps. For instance, in Q3 2021, the average retention rate for stock trading applications is 19%, compared to 32% for cryptocurrency apps.

BOUNTY:

How sticky are the users on Flow?

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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?

Dated: 19/12/2022

Discord Handle: Sarath#5345

Twitter handle: @sssnand98

METHODOLOGY

Initially, the ideas followed here are simple.

1. Users retention rate in Flow
2. Timely analysis of the users who are active in transacting in the recent months.
3. Time taken by users to transact back.
4. Comparison of the same with Other networks like Ethereum, Solana etc.

The methodology is stated simple here by in principle , we get deep info on the Flow Users Retention while in comparison with the other networks yield the effective retention of the FLOW users.

Let us visualize the analysis here…

The retention of the FLOW users is charted here. It is arranged in three sections where the users returned before a week, before a month as well as after a month charted. The users who returned after a month can basically be called the sticky users. it is seen that 61% of the users retained before a week which shows that the users are efficient in retention. 30% of the users retained before a month are moderate users and only 8% of the users are sticky users.

The transactions of the users after receiving the tokens are charted here and here it is seen that most of the users transacted after a month which should be sticky users as mentioned. Only 9% of the users transacted in a period of less than a week.

The right chart here is used to compare with the Ethereum network, where it is seen that 70% of the users haven’t made any transactions in the first weeks while the transactions began only in the second week with the transacted users doing their transactions only after the second week. This indicates that Flow Users are better retainers than Ethereum Users.

Similar to the case of Solana users.

The retention users who have retained ina week is charted here and it is seen that 39.3 users as in percentage constraining the total users have retained in a week.

The total users involved in transactions in all three chains are charted and compared here. Here too we weigh the FLOW tokens and it is seen to have 3rd place among the Ethereum and Solana networks, holding 15% of the total users in the total ecosystems.

The Ethereum network is chosen and the loyal and retention users are distinguished here and it is seen that it has a well distributed balance of 50:50 between the User retention and the Loyal Users.

The New users in all the three networks used for comparison is charted with time and it is ofcourse seen that the new users are always more for the Ethereum Network, But it is remarkable that the hike in the Flow users on the last days of the November Month. Also the largest hike of the Ethereum New Users on December 9 is also markable.

The time-dependent chart on the Total Users and the Retained users over time in the FLOW network is charted here and it is seen that over time there is a decrease in the retained users as it is seen that May 2022 faced the highest number of Retained users while in the recent days, the total users have increased way higher than the old days.

The retention rate of the Flow users over the past two years is charted with time here and it is seen that the overall retention rate has a few drops and hikes and it is seen that in the past two months the retention rate is increasing and it is seen that more people retain their tokens faster .

The type of transactions and the users in the Flow network is charted here and it is seen that it is a minimal arrangement though there is a better visualization. From this plot, it is clear that most of the users have made just 1 transaction and only very less people have made more than 500 transactions, etc.

The Users who made transactions in the Flow over time is charted here and it is seen that even though in recent days, the users who transacted back is very less, even in that it is evident that most of the users transacted on the second week and only very few people transacted after two weeks.

Right:

The return rate of the networks is charted here and it is seen that the Solana network has the highest and flow holds the third place and ETH in the second. The return rate of FLOW network is 5% and Solana accounting 57%.

Left:

The Active ratio of the past two months in the three networks is charted here and it is evident that Solana and Ethereum are the big fishes in this and flow accounts just 2%.

The average daily users in Ethereum is also counted so as to see that the hike in the Ethereum network is evident that with more users make more transactions and activities.

The three chains are considered and the ones which are active all the weeks are charted here and of course, the trend is similar. Flow accounts for 3% of the users.

The chart in the left compares the transaction range with all the other networks and it is seen that , Flow has more transactions made than Solana . Most of the users has made just between 1-10 transactions but among the small percentage of the Flow users most of them has made transactions and not like the other network users.

Apart from the three networks, this is an additional comparison of the Algorand users and it is also seen that most of the users did not transact back, and among the 32% of users who transacted just 2% of the users have transacted in a week.

INFERENCE

FLOW has the best retention rate of all the other networks compared. NFT transactions are not particularly analyzed here but it has a similar trend with token transfers as there are obtained from fact token transfers. Flow token users are not as sticky as Solana or Ethereum users.!!!!