THORchain Ecosystem New User Analysis

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In this article, we discuss how many users are currently part of the ecosystem. What is the number of people who have $RUNE in their wallets or have open LP positions. Can you tell me what this number is at the moment, and how it has changed over time?

What is THORchain?

With THORchain, users will be able to exchange tokens from various networks, including Bitcoin and Ethereum, with tokens from other networks. To trade cryptos, such as Bitcoin and Ethereum, traders and investors use decentralized exchanges, which are unable to facilitate the operation on native networks.As a result of its interoperability, THORChain enables users to directly exchange different cryptos without ever leaving the protocol and without requiring the use of any intermediaries. By depositing cryptos into the THORchain decentralized exchange, users can earn a yield on their money. Users can also borrow cryptocurrency within minutes.

How does THORchain Works ?

The THORchain exchange employs the continuous lending pools protocol of the Bancor DEX to enable cross-chain trading of non-native tokens. Market data for all supported cryptocurrencies is deposited into liquidity pools along with RUNE, the native token of the network. The THORCh automatically exchanges one token for RUNE, then trades RUNE for the other token, when a user initiates an exchange. This is the mechanism that enables non-custodial exchanges between non-native assets.Liquidity pools are created by operative nodes, and user funds can be deposited there for others to borrow, allowing them to earn a yield for the amount they deposit.THORChain relies on the Proof of Stake consensus mechanism, which requires RUNE tokens to be staked in order to verify swap transactions.

With an open LP position, How many new users are there?

  • This section shows the number of new users in the ecosystem who have open LP positions. 
  • There were 6,650 new users between December 31, 2021 and June 28, 2022.
  • A maximum number of 195 new users was observed on March 26, 2022. April 7, 2022 and March 28, 2022 have lower numbers of new users than usual, while May 20, 2022 and June 16, 2022 have higher numbers than usual.
  • Based on the below graph, we can see that the number of new users with an LP position increased in March and April 2022 in the last six months.
  • The maximum number of new users was 1.74K in March 2022, and the minimum number was 20 in December 2021.
  • The number of new users is not too high at first, but later during March and April 2022 it increased almost three times. The decrease in new users can be seen again by looking at users with LP positions. It is possible that all these changes were caused by the volatility of the crypto market. 

According to the below heat map, the peak number of users occurs during the months of March and April 2022. Most of the weeks from March to April have seen more than 50 new users.

By holding $RUNE in their wallets, how many new users are there?

  • This section shows the number of new users in the ecosystem who are holding $RUNE tokens in their wallets. 
  • There were 106.62K new users between December 31, 2021 and June 28, 2022.
  • It was observed that the maximum number of new users was 2.71K on May 25, 2022.The number of new users in June 17, 2022, and May 26, 2022, is lower than normal, and in June 15, 2022, and May 25, 2022, it is higher than normal.
  • Over the past six months, we can see on months March, April, and May 2022, there were an increasing number of users holding $RUNE in their wallets. The maximum number of new users in March 2022 was 26.31K, and the minimum number was 243 in December 2021.
  • If we compare March, April and May 2022 with December 2021, the number of new users increased almost nine times. By looking at the number of people holding $RUNE in their wallets, it is possible to see the decrease in new users. Volatility in the crypto market may be responsible for all these changes. 

According to the below heat map, the peak number of users occurs during the months of April and May 2022. Most of the weeks from March to May have seen more than 700 to 1.2K range new users.

The dashboard below shows the current total number of new users in the ecosystem, the amount of $RUNE they have held in their wallet, and the number of new users with open LP positions.  Taking a look at this, we can see that most of the new users are maintaining their wallets by having $RUNE tokens. 

Observations

  • The above analysis shows that most new users in the ecosystem maintain their wallets by holding $RUNE tokens.
  • The above analysis also indicates a greater growth in new users during March and April 2022 when examining the past six months of data. The number of new users with open LP positions decreased after April in case of new users with open positions.
  • During the weeks between March and April, there were more than 50 new users with open LP positions.
  • Moreover, we can see from the above analysis that the number of new users increased more during March, April, and May 2022. Once again, we can see a decrease in the number of new users who hold $RUNE in their wallet after May.
  • During the weeks of March, April, and May, over 700 to 1.2K new users held $RUNE in their wallets.
  • Therefore, we can conclude that all these growths in new users have decreased after April 2022 due to crypto market volatility.

 

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