Introductions

What is Osmosis?

a 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.

Who is considered DAUs?

In this analysis we will be considering, users with activities/transactions on the majority of days every week as active users.

What is a LP?

Liquidity providers (LPs) are those people who add funds to a crypto liquidity pool. A liquidity pool is a large amount of money that traders can trade against. In exchange for providing liquidity to the protocol, LPs receive fees from trades that occur within their pool.

What is a swapping?

Swapping facilitates the instant exchange of two non-native tokens between two unique blockchain protocols without the need of commencing the traditional crypto-to-fiat exchange or token migration. It allows users to swap tokens directly from the official private key wallet or the trading account.

What is covered in this analysis?

In this analysis we go over statistics regarding daily active users (DAUs) on Osmosis, such as their transactions and swapping, LP actions plus some other metrics to provide a more global and complementary analysis.

Methodology

The needed data regarding active users and their transactions was extracted via mostly using osmosis.core.fact_transactions and osmosis.core.fact_staking for metrics about DAUs swaps, osmosis.core.fact_swaps for metrics about users LPs osmosis.core.fact_liquidity_provider_actions and for metrics related to Osmosis active users transferring their assets osmosis.core.fact_transfers and osmosis.core.fact_transactions was utilized, all of these tables were provided by Flipsidecrypto database, all type of proper charts and graphs were used to turn these extracted data to something more comprehensible.

This analysis was made on 2022/10/20

[5]Discoveries

• A total of 7.5M token transferring was accumulated by active users with an average of 15.5K transfers each day which most of them was outflow.
• Highest transfers recorded in a day was on Mar4 with 48K transfers.
• Most of Outflow or people transferring from Osmosis to other platforms was on Jun21 with 35K transfers by DAUs and for most inflow to Osmosis in a day it was 35K on Jun21, overall after the second half of Jan there was a huge increase to the average daily both from and to Osmosis with some large spikes recorded mostly on transfers to the platform, three months of Jan, May and mostly Mar saw the most average daily transfers.

[2]Users transacting behaviors on Osmosis

[1]Overall metrics regarding Active users/DUAs on Osmosis

[1]Discoveries

• Most active users in a day on Osmosis was recorded on Apr23 2022 with 61K active users, it had an unusual dump on Jun8 which it declined from 34K DAU 3 days prior to just 3.6K, overall since January there was a huge boost to average daily DAU and months March and April were the best month for number of DAUs it failed reach these months since.
• Overall Tuesday with 586K active users out of roughly 4M users, had the highest recorded DAUs in the weeks.
• Swapping seems to be the users most favorite activity on Osmosis with 1.5M(44%) and Mar28 with 46.5K swaps had the most swaps in a day, LPing had its most DAUs on Feb 28 with 28K user and a total of 800K(11%) of users activities belonged to LPs, least popular activity among users is solely staking, less than 1%.
• A global increase to all types of transactions especially swapping recorded on late January2022 and its still having a healthy growth.

[2]Discoveries

• Highest transactions in a day recorded on Osmosis was on May9 with swapping transactions leading with 620K swaps which 275K of these transactions was solely swapping, overall around 44%(15.5M) of the total 88M transactions on Osmosis is swapping and it is 3.6M(10%) LP transactions which had its highest recorded transactions on May9 same as swapping ATH in a single day.
• Overall Tuesday with 19M transactions done by users had the highest recorded transactions done by users in a week.
• Same as users growth their transactions especially swaps recorded a notable growth after Jan.

[3]Active users/DUAs Swapping behaviors on Osmosis

[3]Discoveries

• A total of 5M swaps was done by active users with an average of 10K swaps per day.
• Feb 16 had the most recorded DAUs swapping with 28.7K swaps, there was a strange drop to swaps on June 8 which it went from 13.7K to 1.6K transactions in just 2 days, overall there is on average more swaps happening after Q1 of 2022 which slightly declined after May.
• Most swapped token on Osmosis is OSMO with 3.7M(37%) followed by ATOM 3.5M(35%) and USTC with 11% is the most favorite outside Osmosis ecosystem, token for swappers.

[4]Active users/DUAs Liquidity providing behaviors on Osmosis

[4]Discoveries

• A total of 2.2M LPs was done by active users with an average of 4.6K LPs per day.
• Most recorded Liquidity provided by DAUs was on Mar1 2022 with 14.5K LPs, there was an extreme drop to LP on June 8 which it plummeted from 4.4K LP on Jun6 to 460 LPs, overall there is more LPs per day after end of December 2022 but it declined notably after late March and it declining since after a 7.8K spike to LPs on May18, since.
• Most of the provided LP on Osmosis was osmo19l9wsymdh3mp7munzrlk8rs03ttnu2uaujykt wallet, with 18K(31%) LPing transactions followed by osmo1adtxg4klr2z65zqnxwxv66k5wel7mljutaq6mt with 13K(21%) LPs.

[5]Active users/DUAs token transferring behaviors on Osmosis

Conclusion

• With a total 40M active users recorded and 88M transactions Osmosis is one of the favorite DEXs amongst enthusiasts its bulk of growth in popularity started in the beginning of 2022 with an overall jump to the number of active users, transactions, swaps, liquidity providing and transfers which went on till May but lost its momentum after.

• There was a strange drop to activities on almost all of the activities on June 8 2022 this must be due to a exploit found by the Devs which came down to closing the DEX for further investigation.

• Seems like most of the active users with their transactions are attracted to Osmosis for swapping and most of the swapped token are OSMO and Atom which is expected to due them being the native tokens of the platform and a total of 5M swaps were accumulated which most of them in a day was on Feb 16 28.7K swaps.

• Walletosmo19l9wsymdh3mp7munzrlk8rs03ttnu2uaujykt with 18K provided the most LP highest LP in a day was Mar1 with 14.5K LPs and a total of 2.2M LP were accumulated.

• There isn’t a huge margin between outflow and inflow of tokens on Osmosis it slightly falls heavier toward outflow

  All signs point to Osmosis being one the DEXs with a great potential which was slightly showcased on March 2022 but couldn’t keep its full momentum but with Osmosis being a less than 2 year old DEX/platform and accumulating these promising statistics we are a market wide bullrun far for Osmosis to reach its full potential after having most of its lifespan, spent in a bearish market.

Thank You For Your time!