Wallet Tier Segmentation

• 🐳 Whales (Top 1%): Highest volume traders, critical for market depth

• 🦈 Sharks (1-5%): Large volume regular traders

• 🐬 Dolphins (5-10%): Mid-sized consistent traders

• 🐟 Fish (10-20%): Active retail traders

• 🐙 Octopus (20-40%): Regular retail traders

• 🦀 Crabs (40-60%): Occasional traders

• 🦐 Shrimp (Bottom 40%): Small retail/new traders

Significance for Avalanche DEX Growth

Liquidity Impact

• Whale/Shark behavior directly impacts market depth

• Understanding tier-specific behaviors helps in targeted liquidity incentives

• Retention patterns indicate sustainable liquidity growth potential

Market Development

• User segmentation enables targeted marketing and features

• Retention metrics guide sustainable growth strategies

• Volume patterns help optimize liquidity pools

Key Growth Metrics Highlights

User Base Growth

• Net User Growth trends across tiers

• New User Acquisition rates

• Reactivation success rates

Volume Metrics

• Average Volume per User by tier

• Total Volume trends

• Tier migration patterns

User Behavior Metrics

Engagement

• Average Swaps per User

• Activity frequency patterns

• Cross-tier movement

Retention

• Cohort Retention rates

• Churn patterns

• Reactivation success

Business Significance

Market Health Indicators

• User distribution across tiers indicates market maturity

• Volume concentration shows market resilience

• Retention rates suggest platform stickiness

Growth Opportunities

• Tier-specific behavior patterns reveal growth levers

• Churn patterns highlight improvement areas

• Volume patterns show market optimization potential

Key Takeaways

Market Structure

• Higher tier stability is crucial for market depth

• Lower tier growth drives long-term sustainability

• Retention patterns vary significantly by tier

Growth Drivers

• Tier-specific incentives impact retention

• User migration between tiers indicates market health

• Reactivation success varies by user segment

Growth Recommendations for June+

A. Tier-Specific Strategies

Whales/Sharks

• Implement VIP services and custom analytics

• Offer reduced fees based on volume commitments

• Provide early access to new pools/features

Dolphins/Fish

• Launch mid-tier loyalty programs

• Implement social trading features

• Offer educational content and trading tools

Octopus/Crabs/Shrimp

• Simplify onboarding processes

• Provide basic educational content

• Implement small-trade optimizations

B. Liquidity Growth Initiatives

Targeted Incentives

• Design tier-specific liquidity mining programs

• Implement dynamic fee structures

• Launch concentrated liquidity pools

C. Platform Development

Feature Enhancement

• Develop advanced trading tools for higher tiers

• Implement social features for mid-tiers

• Create simplified interfaces for lower tiers

D. Community Building

Engagement Programs

• Launch tier-specific community programs

• Create mentorship programs across tiers

• Develop educational content for each segment

E. Technical Optimization

Performance Improvements

• Optimize for high-volume traders

• Implement MEV protection features

• Enhance mobile trading experience

These insights and recommendations should be regularly reviewed and adjusted based on changing market conditions and user behavior patterns. The focus should be on building sustainable growth while maintaining market stability and user satisfaction across all tiers.

The high-value swappers/users (Whales and Sharks) lead in trading volumes, number of swaps, and retention rates. These chads are the major OGs on the Avalanche blockchain, contributing significantly to the overall volume and activity of DeFi trades. Most of them are here for the long term.

The mid-value swappers/users (Dolphins, Fish, and Octopuses) form a steady group, showing consistent but modest engagement in DeFi trades, with the potential to contribute more if given the right incentives.

However, the low-value swappers/users (Crabs and Shrimps), though leading in the number of new and unique users as well as churn rate, are mostly testing the waters—making minimal trades with limited impact. Still, their large numbers signal a major growth opportunity if properly motivated.

Retention Rate % = 100% in 1st month because:

• In the first month, I considered all users as "retained" since it's our starting point.

• I explicitly set retained_users = active_users for the first month.

Deactivation/Churn Rate % = 0% in 1st month because:

• Churn Rate is simply (100% - Retention Rate).

• Since Retention Rate is 100%, Churn Rate must be 0%.

• We can't have churned users in the first month since we just started tracking.

Activation Rate % = 0% in 1st month because:

• Activation Rate measures new users compared to previous month's users.

• In the first month, there is no "previous month" to compare against.

• Therefore, we can't calculate an activation rate yet.

Reactivation Rate % = 0% in first 2 months because:

• A "reactivated" user needs three points in time:

  • Time 1: User was active

  • Time 2: User was inactive

  • Time 3: User comes back

• We need at least 3 months of history to see this pattern.

• First 2 months don't have enough history to show reactivation.

Significance of this analysis for Avalanche DEX growth:

This analysis helps Avalanche DEXs to:

• Identify which user segments need attention

• Understand user loyalty and trading patterns

• Make informed decisions about marketing and features

• Track market share and competitive position