Introductions

What is Avalanche?

Avalanche is a decentralized, open-source proof of stake blockchain with smart contract functionality. AVAX is the native cryptocurrency of the platform. Its native token is AVAX.

What is USDC?

USD Coin is a digital stablecoin pegged to the United States dollar. USD Coin is managed by a consortium called Centre, which was founded by Circle and includes members from the cryptocurrency exchange Coinbase and Bitcoin mining company Bitmain, an investor in Circle

What is burning/minting?

In a burn and mint equilibrium, the total supply of a cryptocurrency is reduced over time as coins are “burned” permanently removed from circulation while new coins are “minted” to offset the loss. The result is a deflationary spiral in which the value of each coin increases as the total supply decreases..

What is required from this analysis?

Examine Avalanche USDC- (0xB97EF9Ef8734C71904D8002F8b6Bc66Dd9c48a6E- https://snowtrace.io/token/0xb97ef9ef8734c71904d8002f8b6bc66dd9c48a6e) swaps vs transfers and mints vs burns using the new fact_event_logs data and avalanche.core.fact_traces data.

Lets look at volume of USDC swaps vs transfer by hour since 7/1.

• What is the average amount of USDC transferred vs swapped?
• Show number of unique swapper addresses vs transfer addresses by day for USDC

Next lets look at mints and burns of pairs involving

• Lets look at the volume of USDC mints and burns by hour since 7/1
• How many unique wallets are minting and burning USDC by day
• What is the average mint vs burn for USDC by day
• Note anything else interesting about USDC transactions

Methodology

The needed data was extracted via mainly using tables avalanche.core.fact_token_transfers and avalanche.core.fact_event_logs for USDC transfers and swap actions on Avalanche, the table avalanche.core.fact_event_logs was also used for USDC mint/burns by filtering it by event_name = 'Mint', 'Burn' to narrow the result down to USDC token its contract ID '0xb97ef9ef8734c71904d8002f8b6bc66dd9c48a6e' was used, all of these tables were provided by Flipsidecrypto database and to make these raw extracted data more comprehensible all types of proper charts and graphs were utilized.

USDC swap and transfers compared since July

USDC mints and burns compared since July

• Jul 27-29 saw the most number of burns with an ATH to burns recorded on Jul28 with 356 burning action and Aug 4 with 72 had the most amount of mints. Seems that minting and burning USDC was least relevant on Oct and there was a lot more burn rather than mints(4.1K vs 1.4K) and burning really took since late Jul.
• Seems that in the majority of the days there is not more than 1 minter/burners other than Sep, late Nov and first two week of Nov having more than one minter/burner so most of the USDC minting and burning actions is usually done by one user. There was slightly more burners than minters(140 vs 135).

Conclusion

• Swapping USDC on Avalanche with overall more volume and user interactions seem to be more popular compared to transferring, among enthusiasts but there is a visible decrease to swapping and simultaneous increase to transferring is being recorded since late August and if we are not to considered accumulated metrics since July transferring is more popular option recently. Strangely swaps and transfers are usually following the same trend which is mostly sideway line with some spike, holding the same roughly 6 to 4 daily ratio but since second half of Nov following a new market wide price correction transfers started to eat into daily share of swaps.
• Most of the burned volume of USDC was on 1AM, Jul28 and overall 570M USDC tokens more were burned compared minted, In the mentioned time frame highest average volume of tokens were minted and burned as well. Jul 27-29 overall had the largest number of burns ~770 and overall the time frame between July till now could be considered a USDC burning faze with more than two time burns being recorded compared to mints. Number of minters and burners are roughly equal and in the most of the monitored time frame there was only one burner and minter active so most of the volume minted/burned is being done by only 1 wallet.

Thank you for your time!

• Nov27 with 6.8K users had the most transferrers. Number of users other than some spikes on some months is mostly stable with a relatively straight growth line and last three week of Oct had the lowest daily transferrers since Jul and a total of 421K of users were transferring.
• Highest number of swappers was on Sep29 with ~5K swappers. Overall seem that number of daily swappers is decreasing since Sep with some signs of recovery on first half of Nov(could be due to the new bare market) and a new lowest recorded amount after and a total of 147K swappers accumulated with a lot less steep slope compared to transferrers.
• While users swapping is being less relevant, transferrers are increasing and keeping their upward momentum since late Oct.

What is answered in this analysis?

• USDC swap and transfers compared since July

  USDC swaps and transfers actions in correlation

  USDC swappers and transferrers in-depth

• USDC mints and burns compared since July

  USDC hourly mint/burn volume

  USDC daily mint/burn actions

USDC swaps and transfers actions in correlation

USDC swappers and transferrers in-depth

USDC hourly mint/burn volume

USDC daily mint/burn actions

• Largest volume of swapped USDC on Avalanche was on Nov 15 with 1.67B being swapped most volume transferred in day was 1.52B on Jul28. volume of transferred and swapped USDC is dropping since Sep and share of daily volume increased compared to swapped volume there was more transfers vs swaps by volume(40Bvs31B USD).

• Jul 28 with 132K $ had the highest average transferred volume and Nov15 with 89K USDC swapped recorded an ATH to average swapped volume since July. After late Aug a huge jump in average transferred volume and a drop to average swap volume is visible while swapping lost most of its average volume.

• Most transfers and swaps in a day since Jul was on Nov9 following the FTX fiasco with 13.9K and 25.6K transactions respectively other the mentioned day, number of daily transactions both transfers and swaps seems to be following a some what similar action trend and both other than some dips in Oct had a mostly horizontal trend but. Overall there was more swaps(1.3M) than transfers(1M) but transferring is becoming more popular since second half of Nov which it is now consists more than half of the correlated transactions(before transferring was around 40% of the daily transactions).

   

• Overall first hour of Jul28 with around 219M USDC tokens burned recorded the most burned USDC in an hour since Jul and on 7PM Jul31 largest volume o USDC, 33M was minted. Sep till first half of Oct had the least overall volume of mints/burns.
• Since Jul there was more USDC burned than minted, 1.7B vs 1.2B minted overall other than Jul and Aug there was more USDC burned.
• Average burned/minted volume of USDC was at its highest on Jul 28 while first hour of the day having more average mint volume than burns 75M vs 43M but overall there was slightly more average burned tokens.