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What does a Daily Active User look like on Osmosis?
Introduction
Osmosis is a DEX protocol, which means it uses smart contracts to determine the price of digital assets, to produce liquidity via a peer-to-peer (P2P) methodology, and to exact trades between users. This approach to an exchange platform is known as an AMM — a DEX protocol that prices crypto assets in liquidity pools [+].
In the context of osmosis, investigating the behavior of users is very important in understanding its popularity. Users of a system can be divided into active users and inactive users. Active users repeatedly interact with the system and are permanent users of the system. On the other hand, users who only have a limited number of activities on the system can be considered as inactive users. In this article, we will focus on investigating the behavior of active users who have interacted with Osmosis.
In this article, we will examine daily active users on the Osmosis blockchain. First, we provide a general definition of an active user. Then, using this definition, we check the trend of changes in the number of daily active users. In the following, we will categorize active users according to the type of activity and compare them accordingly. Finally, we examine the behavior of active users in terms of transfer transactions.
Definitions
In order to analyze the behavior of active users, we must first provide a precise definition of an active user. Having such a definition, we can identify these users and find their transactions. We will use these transactions to analyze their behavior in the future. For this exercise, we consider a DAU as any wallet transacting on Osmosis a majority of days every week. When a user has a transaction on Osmosis three days a week, he can be considered an active user. In this article, the threshold of three days per week is used to identify active users. In simple terms, an active user can be defined as follows: A user who has worked with osmosis for at least three unique days of the week.
Activity Types done by Active Users
In this section, we examine the types of transactions of active users. Once we have the DAUs, we can examine what does their activity look like. The willingness of users to LP, staking or swap is investigated. In the following, we have categorized the transactions of active users according to their type of activity and reported the frequency of each type. In the two graphs below, the frequency of different activities is reported both as a number and as a percentage.
In the above chart, it can be seen that the ratio between the different activities of active users has been almost constant over time. As the previous graphs showed, it is evident here that swap has always been the most popular transaction among active users.
The swaps made by users were between two types of tokens. The sum of the swaps we have had for a specific token shows the acceptance of that token by users. In this section, we try to identify popular input tokens among active users.
In the following, we introduce two graphs that generally compare tokens in terms of the number of incoming transfers. These graphs are calculated only for the transfers of active users.
As reported in the charts above, Osmosis and Cosmos tokens have been the most popular tokens among active users with a long distance. Active users have made the most swaps for these tokens. Also, Juno, TerraClassicUSD, Sentinel, Evmos, USDC and Stargaze tokens can be placed in the next ranks in terms of popularity among active users.
In the following, we will check the popular output tokens of Osmosis among active users. Active users have done the most swaps with the origin of these tokens. The graphs below show the frequency of swaps of different tokens made by active users.
As the above two graphs show, the most exchanges have been on Osmosis and Cosmos, which shows that these two tokens have the main use in Osmosis. TerraClassicUSD, Juno, USDC, Sentinel and Luna Classic tokens can be considered as the next important tokens for carrying out exchanges in osmosis.
As shown in the above graph, the trend of the number of transfers made by active users has been increasing and despite the drop in March, it is still high.
As can be seen in the above graphs, users were most willing to do swaps. Staking has also been used many times between these users. About 17% of active users' activities were related to Liquidity Providers (LPs).
In the following, we will examine the trend of changes in the frequency of different types of activities of active users. Examining the process of changes can lead to a better understanding of user behavior. To that end, the following timeline is provided that shows the number of transactions associated with each activity posted by active users.
As shown in the above graph, the number of active users reached its highest value in late March. At this point in time, a trend change has occurred and with the end of the upward trend, we have seen a downward trend in the last three months. In recent weeks, it seems that the number of active users has reached a stable level and has remained in this range.
Currently, it can be seen that on a weekly basis, more than 21 thousand active users are interacting with Osmosis. At the peak of Osmosis' popularity, there were more than 57 thousand active users in this system.
Daily Active Users
In this section, we are going to check the number of active Osmosis users. For this purpose, we use a time chart that identifies and counts active users on a weekly basis. The following plot, demonstrates how many Daily Active Users there are on Osmosis. The total number of users is also reported in this chart.
Transfers done by Active Users
In this section, we will review the transfers made by active users. We examine these transfers from two points of view. In terms of time and in terms of the type of input and output tokens of each transfer. In the chart below, we have evaluated active users by transfers only. This means that if a user has made transfers more than 3 days a week, we have considered it as an active user.
