Introduction

Osmosis is a chain that operates as decentralized exchange in Cosmos network. wallets can swap different tokens of Cosmos network to each other, add liquidity to its pools and stake the pool tokens to earn extra profits. they also can vote in different proposals.

some wallets are more active than others. we have wallets that initiated a transaction in their creation time and after that they never returned. this kind of wallets are dead ones. they don’t help the network expand. on the other side we have active wallets that have done a lot of transactions in different days, weeks, months.

In this dashboard we are interested in the behavior of active wallets. Do they LP more or swap more? How often do they transfer tokens into Osmosis? Where are these transfers coming from?

Methodology

We want to find daily active wallets, named DAU. a DAU would be any wallet transacting on Osmosis a majority of days every week. before going deep to the methods we use let’s have a look at the wallets in general:

In the chapter below we see wallets with respect to time of their first transaction. Osmosis has begun to expand in 2022 specially in February and March that many wallets have joined the network. in the rest of 2022 the flow of new wallets isn’t as intense as first months except a spike on the Apr 23, but it’s much more than 2021.

In 2022, we had a bearish mode in cryptocurrency market but for Osmosis this was the year that it had established itself.

To find DAUs, I consider activeness in 2022. because in the 2021 Osmosis was at its first stages and considering both years would make the metric strict.

Another important fact to find DAUs is the date wallets have been created. for example consider a wallet created 10 days ago and was active in every day possible till now. on the other hand there is another wallet created one year ago and has been active on around 30 different days. now a question rises, which wallets is more active?

first wallet is active on 100% of days but the second one is active on less than 10% of days possible. the same can be said for week or months. if we are interested in old wallets that are active it’s rational to choose the second one. but here we are seeking active users only. so the first one deserves to be selected.

so to find active wallets, simple metrics like being active on more than x days wouldn’t be satisfying and we should look at the time wallets have been created. So I define a new metric named activeness.

activeness metric: for each wallet, the number of days it has been active is divided by the age of that wallet. age of a wallet is the difference between current date and the day the wallet has been created.

the metric is defined in days. it can be defined in weeks or months as well in the same way. for example if this metric is 80% for a wallet created 20 days ago, it means the wallet has done transactions in 16 different days.

With this definition let’s see some stats about Osmosis wallets before defining DAUs, wallets transacting on Osmosis a majority of days every week. First I want to have a look at the distribution of wallets with respect to the activeness metric defined above.

To get better understanding about next three distribution plots, you can enter any address in the parameters section and see the stats about it.

This plot shows that activeness by days is so strict that near ==80% of wallets== are less than ==10% active==.

if a wallet created 8 weeks ago that would be two months ago and has in total just two transactions, one on the first day and another one today. the activeness metric in months would be 66.6%, in weeks 25% but in days almost 3-4%. this metric doesn’t consider number of transactions. it would be interesting to combine it with this one and can be a subject for another analysis.

note that if a wallet is created today, it will get a 100% score here. since it has done transactions in all days possible!

now look at the weeks plot, you can notice that this one is less strict. near ==50% of wallets== are less than ==10%== active in weeks. the interesting fact is that 4.4% of wallets are active in more than 90% of weeks after creation. all wallets created in the current week will get the score 100% here. so this new ones have increased the presence of wallets in the highest category. note that wallets created in the previous week with no transaction in the current week would get 50%.

The chart of monthly active wallets is the most interesting one. this category is the least one in strictness. look how many wallets are in the highest category. 15% of wallets are more than 90% active. the reason for this is the fact that all wallets created in the current month get a 100% score in the monthly activeness metric.

adding the age of wallet and number of transactions to this metric can improve it for sure.

We see in the last charts that weekly metric is the most proper one. since the daily metric is so strict and by monthly metric, number of active wallets are too high.

look at these numbers, In three timespans only wallets with 100% score are counted here.

11% of wallets are active in all months after creation. only 94 wallets have done transactions in all days. note that probably half of these 94 wallets are those created today.

we have 13.1 wallets active in all weeks. they have done transaction in at least one day of every week. this category is the one we should investigate more.

Daily active wallets

in the last part we see that there are 13.1K wallets active in all weeks after creation. they were active in at least one day of each week. we want to make this metric a little more strict. we want ==wallets that are active in majority of days each week.==

what does it mean? we want wallets that have done transaction in each week after they have been created. and in each week at least in 3 different days. the weekly activeness metric we defined in the previous part should be 100%, the monthly metric would be 100% and the daily one should be around 50%. Of course 3 isn’t the majority days of week, if we put it at 4, we would have less 100 wallets. since the wallets would be active in each week after creation and at least three days in all of the week, the criteria is satisfying enough.

The defined methodology is very strict. we can edit them as it suits our needs.

The behavior of daily active wallets

now we have the list of wallets, that are daily active named DAU, daily active users. since the number of DAUs are much less than ordinary wallets, comparing them without normalization isn’t so rational. ordinary wallets would dominate in metrics such as number of transactions, swaps, votes or liquidity providing. for a normalization,, on the other hand if we investigate mentioned metrics and some others in the average per wallet form, the DAUs would probably dominate, since they are the most active ones and has done a lot of transactions.

So it’s better to gather information about DAUs without considering ordinary ones. yet again I would do some comparisons between ordinary and DAUs

The charts below show the distribution of wallets of two type. The 0-1 USD balance dominated the ordinary ones, but DAUs are more uniform. it was expected, DAUs are the most active ones and more percent of them would have more USD balance.

Now we can just look at the actions of DAUs. what can a wallet do in Osmosis. it can ==swap== tokens to each other, ==add or remove liquidity==, ==transfer== tokens, participate in ==governance==, claim ==rewards== and ==stake==. of course there may be some other actions but here these 6 actions are considered.

The left chart shows us how many wallets from DAUs were active in each type. of course more wallets are active at swapping compared to LP or voting. but this chart is more close to uniform than the left chart. These wallets are the most active ones so its natural to have them in different type of actions.

The right chart shows in each type how many transactions we have. swapping and transferring are the most dominant ones. so ==DAUs do more swapping than LP.==

Governance actions are the least favorite ones in both plots. The idea behind Osmosis is that wallets transfer tokens into it swap it to other tokens of Cosmos chain. so it’s rational to see swapping and transferring at the top.

In the next chart we see these actions by DAUs over time. the swapping behavior has experienced a peak in the May 2022 the days that Terra collapsed. the staking behavior in March when there was great rewards for staking. other four actions have followed an increasing trend.

If we look at the transfer line exclusively, we see that there is a strong increasing trend.

there are three types of transfers: moving assets into Osmosis, ==IBC_TRANSFER_IN==, moving the assets out of the Osmosis, ==IBC_TRANSFER_OUT== and finally transfers between ==Osmosis== wallets.

number of These three types are close to each other for DAUs. each one third of total transfers.

on average each DAU receives assets from outside OSMO 11 times per week. it means that each wallets does this more than one time per day.

we are interested in the transfers sending assets into Osmosis and their origins. In the left chart we see the favorite chains assets come from to OSMOSIS, these are only other COSMOS networks which assets can transfer from in intra blockchain transfers.

Conclusion

OSMO has experienced a surge of new wallets in 2022 specially in the first quarter.

There are wallets in total. from them 572K wallet have done transaction in each month possible after creation, 66K each week possible and less than 100 ones on all days after creation.

we have 585 wallets done transaction in all weeks after they have been created and each week on at least three different days. these are daily active users, named DAUs.

DAUs are not all whales, they are average to small wallets in the size of USD balance. there is more uniform distribution in USD balance of DAUs compared to ordinary wallets.

50% of transactions of DAUs are swaps followed by transfers 40% and then staking and liquidity providing. swapping is more favorite compared to LP by a great difference.

Right now, favorite origins to send assets into OSMOSIS by DAUs are EVMOS, ATOM, TORI and JUNO.