The Avalanche platform has witnessed remarkable growth, with a doubling of active users reported by compared to the previous year. As more users flock to the chain, projects within the Avalanche ecosystem are engaged in a competitive race to attract users and capital. However, evaluating the success of these projects and making comparisons can be challenging due to the various aspects of success that commentators consider. This blog post presents [a comprehensive competitor analysis dashboard](https://flipsidecrypto.xyz/SocioCrypto/who-is-the-winner-the-battle-within-the-avalanche-ecosystem-6_B9u5) that evaluates DeFi protocols and DEXes on Avalanche from multiple perspectives, utilizing different metrics to provide valuable insights into the performance and impact of each project on the Avalanche platform.
The Battle within the Avalanche Ecosystem: Who is the Winner?
DeFi Sector Analysis
The DeFi sector on the Avalanche blockchain stands out as one of the most prominent and rapidly expanding sectors. The analysis begins with an examination of basic statistics, followed by an evaluation of projects demonstrating the highest level of success in terms of user engagement and concludes with an assessment of the volume of asset inflow and outflow to different protocols.
Basic Stats
Data reveals significant growth in the number of transactions and active users within the DeFi sector over the past six months. Stargate Finance emerges as a dominant platform, primarily due to its multichain bridge, while ranks as the second most active protocol in terms of transactions. Stargate also accounts for a substantial portion of the transaction fees in AVAX. Notably, Stargate exhibits remarkably higher user engagement, and the Angle Protocol has experienced significant growth in attracting new users. After Stargate Finance, GMX, AAVE, Angle Protocol, and Benqi Finance showcase noteworthy performances across all three basic metrics.
User Engagement
An analysis of user engagement reveals that Splash Network exhibits the highest Stickiness among the protocols, indicating strong user attachment. However, Solisnek demonstrates the highest retention rate, reflecting a high level of user loyalty. Protocols such as Snowy Owl Finance, Icecream Finance, and Mor have achieved better user engagement by effectively retaining users and providing a valuable and sticky platform experience.
Asset Flow
When examining asset flow into and out of protocols, AAVE emerges as the protocol with the highest total flow and net flow, indicating significant activity. GMX, Benqi, and Yield Yak also record significant total flows, while GMX, emdx, and Woo Network stand out as protocols with the highest net flow over the last six months. However, in the shorter timeframe of one month, GMX takes the lead in net flow, followed by Woo Network and Solisnek, demonstrating significant net inflows of assets during this period.
The blog post provides a comprehensive analysis of the competitive landscape of DeFi protocols and DEXes on the Avalanche blockchain. The assessment covers Basic Stats, User Engagement, and Asset Flow, offering valuable insights into the performance and impact of each project. Stargate Finance, GMX, and AAVE emerge as prominent players in various metrics, showcasing their success and influence within the ecosystem. Additionally, protocols such as Splash Network, Solisnek, and Snowy Owl Finance exhibit strong user attachment and engagement. The evaluation of asset flow highlights AAVE, GMX, and Woo Network as protocols with significant total and net flows. Overall, this analysis equips users with the necessary information to make informed decisions and understand the performance and success of projects on the Avalanche platform.
For more information and the detail of analysis check out the dashboard on Flipside app:
The Battle within the Avalanche Ecosystem: Who is the Winner?
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More about the Author
Discord: SocioCrypto#1741
Flipside Profile: https://flipsidecrypto.xyz/SocioCrypto
Methodology
The assessment focuses on three main aspects: Basic Stats, User Engagement, and Asset Flow. Basic Stats include metrics such as the number of transactions, fees generated, active users, new users, and swaps for DEXes. User Engagement metrics consider User Retention Rate and User Stickiness, which gauge user loyalty and the value of the platform or protocol to users, respectively. Asset Flow analysis examines inflow and outflow of assets to DeFi protocols, considering total flow and net flow.
