What is Avalanche Blockchain

Avalanche is a cutting-edge and user-friendly layer 1 Blockchain protocol that is designed to be future-proof. It was launched in 2020 with the goal of being fast, flexible, secure, cost-effective, and easy to use.

AVAX, the native token of Avalanche, serves multiple purposes, including paying transaction fees, securing the Avalanche network, and functioning as a fundamental unit of account across Avalanche blockchains.

The Avalanche blockchain boasts near-instant transaction completion and an impressive processing capacity of 4,500 transactions per second. Additionally, Avalanche is an open-source project, allowing for transparency and community involvement through code viewing and contributions.

The Aim of this dashboard

Understanding how assets flow in and out of a blockchain is crucial, especially in the case of Centralized Exchanges (CEXes) which serve as gateways for fiat currencies and attract significant attention.

This dashboard offers a comprehensive overview of asset flow in Avalanche, tracking the movement of assets to and from CEXes. It provides insights into the inflow and outflow of assets from Avalanche, measuring the intensity of these flows in terms of transaction volume, transaction count, and the number of wallets involved in sending and receiving assets.

Furthermore, the dashboard sheds light on the role of CEXes in onboarding new users to the Avalanche blockchain. It provides data on users who became active on Avalanche by receiving assets from CEXes, offering insights into the impact of CEXes in driving user adoption.

Finally, the dashboard includes a leaderboard that showcases the activity level of wallets that were introduced to Avalanche through CEXes, comparing their activity with other wallets on the blockchain.

Methodology

The analysis in this study accomplishes three main goals.

• First, it examines the flow of assets to and from Centralized Exchanges (CEXes). To identify CEXes as sources or destinations for wallets, data from avalanche.core.dim_label Flipside is utilized. The extraction of asset flows in Avalanche from CEXes is done by analyzing transactions from two sources: avalanche.core.ez_token_transfers and avalanche.core.ez_avax_transfers. Inflows and outflows to and from CEXes are also separately identified.

• Second, the dashboard focuses on identifying users who were introduced to Avalanche by CEXes. To identify such users, the first transaction of all users is considered. Wallets that have received assets from CEXes in their initial transactions are defined as users who were brought into Avalanche through CEXes.

• Finally, Avalanche users are ranked and listed based on three metrics: the number of transactions executed, the volume of transactions in AVAX value, and the transaction fees paid. Users onboarded through CEXes are highlighted in the list to gain insights into the role of CEXes as a recruiting gateway.