If you are bullish on Avalanche projects, this blog post is for you.
The Avalanche platform has experienced remarkable growth, with a doubling of active users reported by compared to the previous year. The AVAX price has also very recently responded positively to this achievement, with a 20% growth. 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 and predicting the prospects of these projects can be challenging due to the various aspects of success that commentators consider.
In our previous blog posts, we presented comprehensive competitor analysis of on the Avalanche blockchain. In this blog post, we present the competitive analysis of dApps on Avalanche from multiple perspectives, utilizing different metrics to provide valuable insights into the performance and impact of each project on the Avalanche platform.
For detailed analysis, check out our analytic dashboard
A decentralized application (dApp) is an application built on a decentralized network, combining a smart contract and a frontend user interface. While DeFi protocols and DEXes can also be categorized as dApps, in this context, dApps refer specifically to applications other than DEX and DeFi.
On the Avalanche platform, dApps can offer users fast and inexpensive transactions, which is expected to drive their expansion and growth.
In this analysis, we will start by examining the basic statistics. We will then evaluate projects that have achieved the highest levels of success in terms of user engagement, considering factors such as user stickiness and user retention rates. Finally, we will assess the volume of assets flowing into and out of different protocols, ranking them based on total and net flow.
Basic Stats
Based on the data, there has been a significant surge in the number of transactions during April and May.
When we break down the data by protocols, it becomes evident that the majority of transactions during these two months were associated with Galxe (previously known as 'project galaxy'). This indicates that projects on Avalanche utilized Galaxe for their campaigns. Galxe began supporting Avalanche in December 2021, but its popularity soared in April and May 2023.
Another dApp that has gained a considerable market share in terms of both the number of transactions and transaction fees in recent months is Holograph.xyz. This platform specializes in minting NFTs, and since mid-May, there has been a notable increase in the number of transactions involving the Holograph Operator and Holograph Factory contracts.
Despite the surge in transaction activity, the number of weekly active users does not show a significant increase during April and May, suggesting that the same users conducted multiple transactions on Galaxe.
It is also worth mentioning OpenOcean as the third-ranked dApp in terms of the number of active users.
The data further highlights the growth of Socket in terms of both the number of users and the number of transactions. Socket serves as an interoperability protocol, facilitating secure and efficient data and asset transfers across various chains. It is important to note that Socket is not simply a bridge or a cross-chain app; instead, it functions as an infrastructure that empowers developers to easily construct these essential components.
While Socket itself may not fit the conventional definition of a dApp, it has become instrumental in the operations of numerous dApps. Many dApps have embraced Socket as a foundational technology, leveraging its capabilities to enable seamless cross-chain interactions and enhance their overall functionality.
Shifting our focus to new users, we observe a notable increase in the weekly number of users onboarded in the dApp sector since May. Particularly, Open Ocean has experienced significant growth following the impressive performance of Socket.
The table below presents a summary of key metrics for each protocol in the past month, including the changes in their rankings compared to the previous month.
Upon closer analysis, we can see that DeFi Kingdoms (DFK) is showing promising growth after OpenOcean, which leads in terms of the number of users. Originally launched on the Harmony One blockchain, DeFi Kingdoms has recently deployed to an Avalanche subnet, where it has hosted several gaming projects.
User Engagement
The scatter plots below provide visual representations that demonstrate an interesting trend: smaller projects such as the Islander, a learn and earn platform, and , an NFT marketplace, have shown greater success in terms of user engagement compared to larger projects with higher transaction volumes and daily active users.
This finding challenges the assumption that project size and user activity directly correlate with higher user engagement. It suggests that factors such as project design, community engagement, and unique value propositions play significant roles in attracting and retaining users.
Asset Flow
When analyzing the flow of assets into and out of dApps, we observe interesting patterns. Specifically, BetSwirl, a GambleFi project, Mu Coin, and OpenOcean have demonstrated the highest total flow, which represents the combined sum of both inflow and outflow.
However, a closer examination of net flow reveals a different story. Net flow takes into account the difference between inflow and outflow, providing insights into the overall balance of assets within the dApp. Surprisingly, OpenOcean has experienced the highest net outflow over the past six months.
In conclusion, this blog post has provided a competitive analysis of dApps on the Avalanche platform, offering valuable insights into their performance and impact. The Avalanche ecosystem has witnessed remarkable growth, with a doubling of active users and a significant increase in the AVAX price. As projects within the ecosystem compete for users and capital, evaluating their success and prospects becomes challenging due to various factors.
The analysis has covered basic statistics, highlighting protocols such as Holograph.xyz that have experienced surges in transaction activity. User engagement has been assessed, revealing that smaller projects like the have shown greater success in attracting and retaining users, challenging the assumption that project size directly correlates with user engagement. Asset flow analysis has demonstrated interesting patterns, with BetSwirl, Mu Coin, and OpenOcean exhibiting the highest total flow, while OpenOcean experienced the highest net outflow over the past six months.
As the Avalanche platform continues to evolve, monitoring the performance and impact of dApps through detailed analysis and real-time data provided by the analytic dashboard is crucial. This analysis serves as a valuable resource for investors, developers, and users interested in the growth and potential of dApps on Avalanche.
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?
: To access the SQL Queries provided in this dashboard, you need to log in to Flipside's app. is a leading on-chain data provider that offers a wide range of on-chain data, analytics and other useful analytic tools.
More about the Author
@SocioCrypto | 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 DEXes, considering total flow and net flow. The explanations and narratives are based on observations made in mid-July 2023; however, the data and visuals on the dashboard are updated on a daily basis.
