Introduction

Ethereum is one of the most popular and widely used cryptocurrencies in the world. Created in 2015 by Vitalik Buterin, it is known for its ability to enable the creation of decentralized applications and smart contracts, making it quite different from other cryptocurrencies like Bitcoin. Ethereum's unique features have made it a preferred platform for developers looking to build decentralized applications and other blockchain-based solutions.

Squid Protocol on Ethereum, on the other hand, is a new decentralized finance (DeFi) protocol built on top of the Ethereum blockchain. It aims to provide users with a more sustainable and fair approach to liquidity provision, particularly for smaller liquidity providers. The protocol uses a unique algorithm to determine the optimal spread for each liquidity pair, which helps prevent impermanent loss and maximizes returns for liquidity providers. Squid Protocol also has a governance system that allows users to have a say in how the protocol evolves over time. Overall, Squid Protocol is a promising addition to the DeFi space and could help further expand the use cases for Ethereum and other blockchain-based technologies.

Methods

In this analysis we will focus on Ethereum. More specifically, we will analyze the following data:

• Daily new swquid users
• Daily bridges
• Daily active users
• Daily total bridge per user
• Protocol after Squis most used
• Distribution of users by protocol used after next action
• Distribution of users based in timeafter next action

Firstly, the Daily New Squid User graph shows a significant increase in the number of users after the interop summit, with the first day recording up to 45 new users. From early February, the number of users continued to grow, and as of today, there are a total of 924 unique users. This suggests that the interop summit was successful in attracting new users to the platform.

Secondly, the Active Users graph shows a generally upward trend, despite some fluctuations. In early March, there was a notable spike in active users. This indicates that Squid Protocol is gaining popularity and retaining its user base, which is a positive sign for its long-term growth and sustainability.

Thirdly, the Daily Total Bridge per User graph suggests that the majority of users only make one bridge since January. However, some users have made up to 10 bridges, highlighting the need for more complex cross-chain transactions. This indicates a potential area for growth and development in the platform.

Lastly, the Daily Bridge graph shows a significant increase in the number of bridges made from early March. The trend has been upward since January, and there are now a total of 1.5k bridges. This suggests that more users are transacting on the platform, which is a positive sign for Squid Protocol's growth and adoption.

Firstly, in the distribution of users based on time after next action in Squid, it was found that 368 users returned to the platform within less than a month, and 305 users returned within less than a week. This indicates a high level of engagement and satisfaction among Squid users, with a significant number returning to use the platform in a short period of time.

Secondly, in the distribution of users by protocol used after next action, USDC has the highest number of users with 290, followed by Uniswap with 259 users, and Squid in third place with 209 users. This suggests that USDC is a popular choice among users when transitioning from Squid to other protocols.

Thirdly, according to the protocol after Squid most used, Uniswap is the most widely used protocol with 1,73k transactions, significantly higher than other projects. Squid and USDC are in second and third place, respectively, with 1,1k and 777 transactions.

Key insight

• In the daily new Squid user, after interop summit has increased the number of users, the first day it reached 45 new users. At the beginning of February the number of users started to grow. Today there are a total of 924 unique users.

• In the active users, there is an upward trend, although there are constant ups and downs. At the beginning of March there is an important peak of active users.

• In the daily total bridge per user, shows that almost all users only make 1 bridge since January. Some users are reaching up to 10 bridges, indicating a need for more complex cross-chain transactions.

• In the daily bridge, there has been a large increase since the beginning of March. The trend has been upward since January. There are a total of 1.5k bridges.

• Squid has a high level of engagement and user satisfaction, with a significant number of users returning to use the platform within a short period of time.

• USDC is a popular choice among users when transitioning from Squid to other protocols, followed by Uniswap and Squid.

• Uniswap is the most widely used protocol after Squid, with significantly more transactions than other projects. Squid and USDC are in second and third place, respectively.