Try Quests to earn SOLIntroduction
Flow is a Proof-of-Stake blockchain that went live in 2019 after the founders of Dapper labs got fed up with the slow and expensive state of Ethereum blockchain with Crypto Kitties and NBA Topshots soaring in popularity. The main advantage of Flow chain is its fast, low cast transactions supporting smart contracts.
In this article, we will analyze the user retention on Flow chain and compare it with other L1 chains like Ethereum, Solana etc.. Also, will explore like how often or frequently do users makes transaction come back and perform other transactions one month later on these L1 chains.. Further which, will verify the monthly active users and analyze the NFT purchase frequency of active users on L1 chains such as Flow, Ethereum, Solana etc.. with supporting visuals.
Definitions
Ethereum is a decentralized, open source, and distributed computing platform that enables the creation of smart contracts and decentralized applications, also known as dApps. In other words, it is a blockchain-based network that aims to make it easier to create applications that aren’t managed or controlled by one entity.
Solana is the first web-scale blockchain which is the fastest, most secure and offer scalable solution in crypto world and it has put forward 8 core innovations that differentiate it from the competition, which are Proof-of-History, Tower Byzantine Fault Tolerance, Turbine, Gulfstream, Sealevel, Pipeline, Cloudbreak, Archivers etc.. As a reliable, scalable and decentralized blockchain, Solana is capable of processing many more transactions per second than its competitors like Ethereum due to its low transaction fees.
Active Users can be defined as the user addresses who have been active or performed transactions in the past 2 months over the Flow blockchain.
User Retention across Flow, Soalna and Ethereum chains
The below visuals shows the total number of retentive users who have come back after a time period of one month later and performed transactions on various L1 chains such as Flow, Ethereum & Solana chain. So, here we will observe the total number of transactions performed by retentive users after one month of time and could see that maximum number of retentive users have performed minimal transactions when verified over Ethereum, Solana & Flow chains in the past 6 months.
Monthly Active Users comparison across Flow, Ethereum & Solana chains
If we look at the monthly trend of active users transacting over Flow, Ethereum and Solana chains since the beginning of January 2022, we could see that maximum monthly active users have been observed on Ethereum chain comparatively. Also, highest count of active users have been observed in the month of November on Flow chain, but however a maximum active users have been observed in the month of March 2022, later which there has been a consistent trend till rest of the year.
In the month of November 2022, there has been a significant raise in the total number of active users count on Ethereum chain when observed since the beginning of January 2022.
User Retention over NFT Purchases
NFTs stands for Non-fungible tokens, where in Non-fungible can be defined as something that cannot be exchanged for another item because its unique. For example, one piece of Art is not equal to another as both will have unique properties. Basically, NFTs are tokens that lives or survives on a blockchain and represent ownership of unique items. These NFT tokens in general will contain bit of information specific to it, such as unique token name, symbol etc.. and will be owned by the creator or artist of that token.
These NFT tokens will be sold by performing sell & buy transactions on the particular blockchain. Here are the visuals that shows the frequency with which Users making NFT purchases on various L1 chains such as Flow, Ethereum and Solana measured in terms of users making consecutive purchases in first 24 hours ( or one day), within 7 days, within 2 weeks, with in 30 days etc..
References
Methodology
As part of this analysis, we will first look at the frequency with which Users were performing transactions makes a come back after one month later across various L1 chains such as Flow, Ethereum and Solana. The data for this analysus will be derived using the tables like
- ethereum.core.fact_transactions
- flow.core.fact_transactions
- solana.core.fact_transactions
Then we will analyze the monthly active users performing transactions on Solana, Flow & Ethereum chains, followed by the NFT purchase frequency of these users over the past few months, captured using below set of tables
- ethereum.core.ez_nft_sales
- flow.core.fact_nft_sales
- solana.core.ez_nft_sales
Retentive users will be computed as those users who have made a come back performing transactions after a time period of one month later over the relevant blockchain network.
Observations
According to the above graphs or visuals, we could clearly see that maximum retentive users have been observed on Ethereum chain, especially in the month of November 2022. Also, it seems there has been a significant raise in the total number of active users on Ethereum chain especially in the month on November 2022, when observed on a monthly basis.
Also, when compared over other L1 chains such as Flow, Ethereum & Solana chains, we could clearly observe that highest retentive users have been recorded on Ethereum comparatively. In terms of NFT purchases by retentive users, we could see that significant NFT purchases has been observed on Ethereum, followed by the Solana chain.