Analysis Of Bot Swappers

As a result of this article, we aim to discuss the topic of bot swappers and compare their behavior to that of average swappers (i.e. non-bot swappers) in terms of number of swaps. In addition, check the percentage of swaps executed by bots over the past 30 days. Additionally, have a look at what pools and what pairs were the most popular among bot swappers in the past 30 days.

Crypto Trading Bots

Crypto markets tend to be volatile, which results in dramatic price fluctuations even within a matter of minutes. Due to this situation, investors must be very alert if they are to take advantage of market values. However, this may not always be possible. In these cases, the bots assisted traders in gaining a better advantage in trading the crypto market.  The advantage of using bots when trading cryptocurrency is that the market is open 24 hours a day, 7 days a week. They can react more quickly than investors. On the other hand, most investors don’t have the time to consistently find the best trades, which robots can do. For example, Arbitrage bots are mainly designed to take advantage of discrepancies in exchange rates.

Among the key components of crypto trading bots are:

  • Analyze the market data : Analyzes data from multiple sources, interprets it, and decides whether to buy or sell a particular cryptocurrency asset. 
  • Finding Risks Before investing : For a crypto trading bot to be successful, it relies on the prediction of risk before investing. Based on market data, this model can also identify what the market’s risks are. Depending on this information, the bot decides how much to invest or trade. 
  • When to Buy/sell an Assets : This module of the bot can buy or sell cryptocurrency assets on the market by using some APIs. In some cases, purchasing tokens in bulk may not be the most beneficial option. If this is the case, purchasing tokens immediately may be the better option. 

We can use bots in all of the above areas, and also we get a different set of benefits by using them, such as crypto trading bots are generally thought to be more efficient than trading cryptocurrency assets manually. These crypto trade bots are able to handle large volumes of data and reach reasonable conclusions. They are more efficient than humans. Even if all data has been processed, it is difficult to gain insights from human trading. 

Here in this article, by a single user processing more than 200 transactions in a day, I was considered a bot. In the following graph, we can see the comparison between bot swap transactions and regular swap transactions. From the graph we can see that bot swap transactions were not visible initially, but they increased later. Here we can see both the bot swap transactions and also the normal swap transactions are in increasing trend.

From the below graph we can see the comparison of bot swap transactions with the normal swap transactions for past 30 days . Over the period of March 25, 2022 to April 26, 2022, 85.81K bot swaps were made. The normal swap Txns from March 25, 2022 to April 26, 2022 were 153.04K. The normal swap transactions are double the Bot swap transactions. First week of April 2022 has seen both bot swaps and average swaps increasing a lot. As we can see, they have been at their maximum during this period. According to the analysis, both have decreased trend.


Using the below graph, we can see how many swaps were executed by bots over time as well as by non bots. In this graph, we can see that the percentage of bot swaps is increasing, while the percentage of normal swaps is decreasing.

In the graph below, we can see the percentage of swaps performed by bots and non-bots in the last 30 days.  From the below graph, we can see initially there was a higher percentage of bot swap transactions than later on. Initially, there was a higher percentage of bot swap transactions, but it later declined. Recently, it has been increasing again.  Nevertheless, we see a higher percentage of swap transactions are carried out normally when comparing bot swap percentage with normal swap percentage. 

From the below graphs we can see the top 5 pools and what pairs were most popular among bot swappers in the past 30 days. Most of the Bot swap transactions were happened by LUNA to UST and UST to LUNA pairs.

From the below graphs we can see the top 5 pools and what pairs were most popular among not bot swappers in the past 30 days. Most of the Not Bot swap transactions were happened by LUNA to UST and UST to LUNA pairs.

We can see from the percentage of top 5 pools and what pairs were most popular with bot swappers during the past 30 days that LUNA to UST is showing the highest bot swap transaction percentage.  A total of 40.89% of bot swap transactions involved the LUNA to UST Swap Pair, and 74.75% was handled by the UST to SET and LUNA to UST Swap Pair. In all top-performing pools, UST to CHT, LUNA to UST & UST to SET are making more bot swap transactions than the other top pools.

We can see the following graph for the past 30 days which displays the top pools and pairs for not-bot swapper transactions. Most of the not bot swap transactions were between pairs UST to LUNA, LUNA to UST & UST to SET.

Observations

From the above analysis of data,

  • When we consider swaps, bot swap transactions and normal swap transactions declined over time. Additionally, the normal swap transactions are double the bot swap transactions from the past 30 days. As of the first week of April 2022, bot swaps and average swaps have both increased significantly. During that time they are at their peak.
  • Comparing bot swap percentage with normal swap percentage, if we look at the percentage swap transactions, we see a higher percentage of swap transactions are done normally. 
  • From the top pools and swap pairs, UST to LUNA and LUNA to UST have been doing the most bot swap transactions over the past 30 days.
  • UST to CHT, LUNA to UST & UST to SET swap pairs are making more percentage of bot swap transactions than the other top-performing pools.
  • Due to the recent growth of LUNA token prices and market fluctuations, there is also a rise in use of bots in these swap pairs as the most bot swap transactions are conducted between UST and LUNA and LUNA to UST. As a result, the user may believe they might not miss the market data analysis by using bots. 

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