Introduction:

• On 14th January 2022, Terra annouched the launch of its Station wallet. () and )
• This has generated hype in the Terra community.
• Our goal is to identify if this hype has resulted in an increase in activity.
• We will also identify the other factors that may influence our chosen metrics.

Definitions:

• We will focus our analysis on the following metrics:
  • Number of Transactions - These are the total number of transactions that have taken place in the defined period. (1st January 2023 to 31st January 2023 by default).
  • Number of active users - These are the total number of users who have initiated a transaction in the defined period
  • Number of new users - These are the number of users who have initiated a transaction for the 1st time in the defined period.
  • Announcement Date - When we are analyzing data on the daily time frame, entire day of 14th January is taken as announcement period. Similarly when the data is analyzed on hourly timeframe, hour of 2023-01-14 18:00:00.000 is taken as announcement period.
  • Growth is measured as (after announcement period - before announcement period) / before announcement period * 100

Findings:

• As expected, there has been an increase in activity for Terra in terms of all the metrics ie number of transactions, number of active users as well as number of new users.
• The growth in number of transactions for Terra is 41% which is the highest among all analyzed blockchains.
• In terms of active users also, Terra has shown good growth of 32% which is next only to Osmosis’s 44%.
• In terms of number of new users, Terra’s growth of 54% is the highest among all analyzed blockchains.
• In terms of all metrics, majority of the blockchains have shown negative growth.
• Thus our hypothesis that increase in activity could be due to overall improvement in market sentiment seems to be incorrect and the growth is more due to Terra specific reasons.
• Also for all metrics, activity is the highest on 15th January 2023 followed by on 14th January 2023.
• Thus the increase in activity seems to be due to announcement of Terra Station wallet.

• The number of transactions on Terra network reached a peak of ~25.8K transactions on 15th January 2023 immediately following the announcement.
• The average number of transactions are the highest at announcement date followed by after announcement date and before announcement date respectively.
• Compared to before announcement date, the average number of transactions have grown by 41% after the announcement date.

Number of Active Users:

• The number of active users on the Terra network also reached a peak on 15th January 2023 immediately following the announcement.
• The average number of active users are the highest at announcement date followed by after announcement date and before announcement date respectively.
• Compared to before announcement date, the average number of active users have grown by 32% after the announcement date.

Number of New Users:

• Just like the number of transactions and number of active users, the number of new users on the Terra network also reached a peak on 15th January 2023 immediately following the announcement.
• The average number of new users are the highest at announcement date followed by after announcement date and before announcement date respectively.
• Compared to before announcement date, the average number of active users have grown by 54% after the announcement date.

Hypothesis:

• Before starting the analysis, I had the following assumptions:

  • There will be an increase in activity in terms of all the 3 metrics ie number of transactions, number of active users as well as number of new users due to the following reasons:

    1. Improvement in the overall market sentiment since the start of 2023.
    2. Albright Capital dropping lawsuit against Terraform Labs and Do Kwon ()
    3. Launch of the Station wallet.

Number of Transactions:

Terra:

Comparison Blockchain (Ethereum by default):

Terra:

Comparision Blockchain (Ethereum by Default):

Terra:

Comparision Blockchain (Ethereum by Default):

Comparing Growth across blockchains:

• In terms of average number of transactions as compared to before announcement period, Terra has shown the highest growth in the after announcement period at 41%.
• In terms of active users, Terra is at number 2 position with 32% growth next only to 44% growth for Osmosis.
• In terms of new users, Terra has the by far the highest growth of 54%.