Introduction

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 Messari 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 post, we presented a comprehensive competitor analysis of DeFi protocols. In this blog post, we present the competitive analysis of 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.

For detailed analysis, check out our analytic dashboard

DEX Sector

DEX sector plays a crucial role in enabling trading activities. On Avalanche, alongside multi-chain DEXes like SushiSwap and Paraswap, there are also DEXes that originated from Avalanche and expanded to other chains, such as Trader Joe.

 

Basic Stats

The data indicates a notable growth in the number of swaps and active swappers within the DEX sector over the past three months. While Trader Joe continues to maintain its position as a dominant DEX, the market share of Woofi has been steadily increasing since the end of March 2023. In terms of total swappers over the past six months, Trader Joe, Woofi, and Pangolin have experienced the highest number of participants.

Shifting our focus to new users, it becomes apparent that the weekly number of users onboarded in the DEX sector has shown a consistent upward trend since the end of March. The peak of new user registrations occurred in the last week of May.

The table below provides a summary of the basic metrics for each DEX over the last month, along with the changes in their rankings compared to the previous month.

Upon analysis, it is evident that there have been no changes in the rankings among the top DEXes on Avalanche. Trader Joe, Woofi, Pangolin, Sushiswap, and Platypus have consistently outperformed other DEXes on Avalanche in terms of the number of swappers and the number of swaps.

 

User Engagement

The graph below illustrates that FraxSwap exhibits the highest stickiness and retention rate among the DEXes, indicating a strong level of user engagement. However, Woofi, which shows the second-highest retention rate, has the lowest stickiness.

GMX is also notable for its value to users, as it ranks second in stickiness among the DEXes on the Avalanche chain.

Considering both the Retention Rate and Stickiness metrics, we observe that FraxSwap and GMX have the highest levels of user engagement, with FraxSwap leading the pack.

Asset Flow

When examining the flow of assets swapped in and out, it becomes evident that Trader Joe has the highest total flow, which includes both inflow and outflow. Following Trader Joe, GMX has also recorded significant total flows.

 

Conclusion

The blog post provides a comprehensive analysis of the competitive landscape of 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.

In conclusion, the competitive analysis of DEXes on Avalanche reveals a dynamic and thriving sector within the platform. The data indicates notable growth in the number of swaps and active swappers, with Trader Joe maintaining its dominant position while Woofi's market share steadily increases. Trader Joe, Woofi, and Pangolin have experienced the highest number of participants in terms of total swappers.

The analysis also highlights user engagement as a crucial factor, with FraxSwap exhibiting the highest stickiness and retention rate, followed by GMX. These DEXes demonstrate strong levels of user engagement, indicating their value to users on the Avalanche chain.

 

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?

Note: To access the SQL Queries provided in this dashboard, you need to log in to Flipside's app. Flipside is a leading on-chain data provider that offers a wide range of on-chain data, analytics and other useful analytic tools.

 

Takeaways

📊 Basic Stats:

• The DEX sector on Avalanche has witnessed notable growth in the number of swaps and active swappers over the past three months.
• Trader Joe remains dominant, but Woofi has been steadily gaining market share since March 2023.
• Trader Joe, Woofi, and Pangolin have the highest number of participants in total swappers over the past six months.

🆕 User Onboarding:

• Weekly new user registrations in the DEX sector have shown a consistent upward trend since March, with the peak occurring in late May.

🔢 Top DEX Rankings:

• Trader Joe, Woofi, Pangolin, Sushiswap, and Platypus consistently outperform other DEXes on Avalanche in terms of swappers and swaps.

👥 User Engagement:

• FraxSwap demonstrates the highest stickiness and retention rate, indicating strong user engagement.
• Woofi shows the second-highest retention rate but the lowest stickiness.
• GMX ranks second in stickiness, highlighting its value to users.
• FraxSwap and GMX exhibit the highest levels of user engagement.

💸 Asset Flow:

• Trader Joe has the highest total flow, including both inflow and outflow.
• GMX also records significant total flows, following Trader Joe.

 

More about the Author

Twitter: @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.

 

Who is the Winner? The Battle within the Avalanche Ecosystem (Part 1 - DeFi Sector)