Question in detail:

The question of “active wallets” faces every ecosystem. Let’s investigate this question for Terra — and go beyond the “one transaction in 30 days” approach!

Define what an active, high quality user looks like and how it can be measured. Assess how many active users exist on Terra, according to your definition. Additionally, provide a few brief, specific ideas to attract additional users, as well as an assessment of what it would cost to implement these ideas.

What is the acquisition cost for a high-value user, according to your recommendations?

Overview of analysis:

This dashboard is used to find out the Active wallets on Terra blockchain (based on my own definition) and also track the behavior of these active wallets. This analysis divided into the following parts:

• Active wallets on Terra
• Actions done by Active wallets
• Conclusion and recommendations to increase the number of active wallets on Terra

The start point of this investigation is from May 23, 2022 and the weekly basis is considered to determine the outcomes.

About Terra:

After the sudden and horrific collapse of the Terra network, many investors are worried about the future of the stablecoin Terra and the Luna Classic blockchain. Although Terra Network was completely destroyed, the founders quickly launched a new version called Terra 2.0.

Terra 2.0 is the new version of Terra Classic blockchain. This version relaunches Luna cryptocurrency. In fact, the new Luna coins replace the old ones. Terra 2.0 is completely different from the old Terra platform, now known as Terra Classic. Now that the network is up and running, the new Terra will be officially released under the original brand. The main difference between these two networks is that it will not be supported by Terraform Labs or Do Kwan (the founder of Terra Classic). This means Terra 2.0 is fully community controlled.

The technical name of this chain is Phoenix-1 and the name of its test network is pisco-1. The previous network will continue to work with a new name; This network will be called Terra Classic chain and all its tokens will have the classic extension. Therefore, Luna will be called Luna Classic or LUNC, and Dollar Tera and other stablecoins of this network will have the suffix C added to their tokens (USTC, KRTC, EUTC, etc.). Some centralized exchanges that have listed the new network and its tokens have used the name LUNA 2 for the new network token and LUNA for the older network currency.

Methodology:

The data provided by Flipside has been used to handle this analysis. To handle this investigation the following steps have been passed as below:

• What is active wallet:
  • Used table→ terra.core.fact_transactions
  • The active wallets on this investigation is considered as a users who interacted with blockchain for more than specific weeks (8 weeks by default).
  • The reader can easily logged in on Flipside crypto and change the threshold for filtering active wallets on Terra blockchain.
  • Major aspects→ Count of active wallets in general and over time, share of defined active wallets from all wallets
  • Distribution of wallets by count of transactions and time between first two transactions, average and total paid fee
• Actions done by Active wallets

  • Actions→ Transfer, Swap, Provide Liquidity, Vote, NFT mint and Stake

  • Metrics→ Share of actions, Distribution of active wallets for each action, Transaction per wallet for various action

Part 1: Active wallets on Terra

Part 3: Conclusion and recommendations

Findings:

Now its time to underestimate the behavior of defined active wallets on Terra blockchain and find out the most popular actions among them:

• As can be seen, the Transfer, Swap and Stake actions are three of the most popular actions for active wallets of Terra and the domination of Transfer action could not be negotiated.
• One of the important metrics used in this part is the count of transaction per wallet for each action and it can be used to identify that how sticky are users on specific action. According to the outcomes related to this metric, the Transfer action has the highest count of transaction per wallet and the second rank belong to Swap action with over 25 transaction per wallet for defined active wallets on Terra.
• The domination of Transfer, Swap and Stake actions can be seen from the over time charts.

Findings:

The first part is used for determining the count of active wallets by my definition (active for more than 8 weeks on Terra) and the outcomes are:

• About 10% of total wallets on Terra can be considered as active wallets based on my definition.
• The active wallets are more responsible for total fee payment on Terra network compared to regular wallets. But average paid fee for active wallets are less than regular wallets and the main reason of that because active wallets are more experienced users on Terra.
• About 45% of active wallets have made between 10-20 transactions and small part of then (10%) made less than 10 transactions on Terra.
• Over 50% of active wallets made their second transaction on Terra in the same day of first transaction.
• The highest count of active wallets have made their first transaction on Terra 2 in the last week of May 2022 and after Terra collapse.

Part 2: Actions done by Active wallets

Based on the definition of active wallet in the first part and also the outcomes of the previous sections, its time to made conclusion and recommendation for Terra network to attract more active and trustful wallets in the new ecosystem:

• As an analyst or investor of crypto universe, you can have a more or less picture of the number of existing users by looking at the number of unique addresses in a particular network. Of course, it is worth mentioning that a person can have several wallets and use them together; Therefore, these numbers represent the maximum possible users, but the actual number of daily users can be lower than the figures shown in the graph. On Terra we used defined active wallets to find out the users interacted with network.
• The number of active users of Terra 2 has seen a significant jump after collapse of Terra classic in May. The investors of this cryptocurrency also began to swap their assets into the stable coins and transfer them outside of Terra ecosystem. Among the main factors of the unprecedented decrease in the number of active addresses in Terra, we can mention the ever-decreasing pattern of the public trust in the Terra network. Of course, these factors have also had a significant impact on the growth of the main token price of this network.
• In order to regain the popularity of the Terra network and also to attract more active users in this network, it is necessary to provide public trust among users in the security of the network in the first step, so that the capital of users does not fall into the hands of certain individuals!
• The next step is to introduce and offer popular projects among users. Among the most important of them, we can mention DeFi and NFT projects, which have had a significant growing trend in recent years.

Useful links:

• Terra blockchain
• Medium article about Terra
• Terra future

Author:

Credited by MZG

Discord handle: m.zamani#0361

Twitter handle: @GargariZamani

The reader can easily logged in on Flipside crypto and change the threshold for filtering active wallets on Terra blockchain.