Subscribe to Luis Fernando
<100 subscribers
Share Dialog
Share Dialog
Harmony and Optimism are two of many layer 2 scaling solutions competing for more users (reach), more growth (retention), and increasing gas fee volume (revenue).
Optimism saw a significant spike in new and active addresses in June with relatively steady growth in the following months.
In stark contrast, Harmony saw a major loss in new and active users in the months following June, after already experiencing a huge drop off from April to May.
Harmony has seen significantly less growth since popular P2E game DeFi Kingdoms migrated to Avalanche around the April to May timeframe.
The major hack of the cross-chain bridge, Horizon, in June shows its impact in the months to follow.
Harmony is struggling to onboard new users while Optimism is seeing a gradual increase in user onboarding.
Note on Optimism: it has been one week in November at time of writing so that month’s data is not complete, however, one week of data in November for new addresses is already 36% of total new addresses in the previous month of October. And one week in November for active addresses is already 49% of total active addresses in October.
The DAU vs WAU vs MAU charts between these two projects naturally reflect active addresses viewed monthly from Reach data, with Harmony’s WAU and DAU consistently in decline month over month.
Alternatively, Optimism DAU vs WAU vs MAU chart consistently grows month over month.
Optimism’s DAU/MAU stickiness ratio shows a consistent one percent increase each month suggesting that more monthly users are becoming daily users.
Harmony has a less consistent DAU/MAU ratio wherein we see an increase from June to August and drop off from August to October.
Unlike Optimism, which is seeing a consistent and gradual growth that is also shared in its retention, Harmony saw a major loss in monthly active users over the months of June to August while daily active users dropped by little in comparison.
This means the increase in DAU/MAU ratio for Harmony from June to August is a result of less monthly active users but relatively similar numbers of daily active users, not a result of more monthly users becoming daily users.
August to October is more reflective of this as the decline in MAU is closer in proportion to the decline in DAU.
It’s interesting to note in the Optimism MoM Cohort Retention table that the project was able to retain 49% of the 73,255 new users in May, the month prior to the event that caused their major spike in June.
They retained far less users from the June cohort, which had 232,336 new users, in the following month of July, at only 19%.
But due to the larger cohort size, they ultimately retained more users from June to July, 44,143 users, than from May to June, 35,894 users, despite the lower retention rate.
The MoM Cohort Retention table for Harmony is more straightforward in that it shows a consistent reduction in both cohort size and retention month over month.
Since June, Harmony’s average gas paid and gas per user has increased. This is in line with their decision to increase base gas fees in an effort to combat bots flooding the network despite seeing less activity on the network.
In contrast, Optimism’s average gas paid and gas per user has decreased since March of 2022.
Optimism has regularly pushed updates to reduce transaction fees and this is reflected in these charts despite the increase in users over the same time.
Aggregate gas spending was consistent for Optimism in the same time frame with a dip in July following the loss of funds in June due to a hack while transferring liquidity to Wintermute.
The majority of the funds were recovered though and gas spent returned to prior levels.
The general decline in the last three months seems in line with the decreased activity in the rest of the ecosystem.
Interestingly, despite the reduction in fee cost per user and on average, the aggregate amount of gas spent was consistently higher. This would support that activity in these months were high to keep this spend high even though average spend was reduced.
The consistent increase across the Optimism charts from January to March reveals increasing usage of the network immediately after its open mainnet launch in December, followed by successful fundraising efforts from notable VCs.
Harmony’s aggregate gas spent is consistent with the average and per user amounts. The correlation seems closely tied with the choice to increase fees and not necessarily a result of more activity as is the case with Optimism.
Harmony and Optimism are two of many layer 2 scaling solutions competing for more users (reach), more growth (retention), and increasing gas fee volume (revenue).
Optimism saw a significant spike in new and active addresses in June with relatively steady growth in the following months.
In stark contrast, Harmony saw a major loss in new and active users in the months following June, after already experiencing a huge drop off from April to May.
Harmony has seen significantly less growth since popular P2E game DeFi Kingdoms migrated to Avalanche around the April to May timeframe.
The major hack of the cross-chain bridge, Horizon, in June shows its impact in the months to follow.
Harmony is struggling to onboard new users while Optimism is seeing a gradual increase in user onboarding.
Note on Optimism: it has been one week in November at time of writing so that month’s data is not complete, however, one week of data in November for new addresses is already 36% of total new addresses in the previous month of October. And one week in November for active addresses is already 49% of total active addresses in October.
The DAU vs WAU vs MAU charts between these two projects naturally reflect active addresses viewed monthly from Reach data, with Harmony’s WAU and DAU consistently in decline month over month.
Alternatively, Optimism DAU vs WAU vs MAU chart consistently grows month over month.
Optimism’s DAU/MAU stickiness ratio shows a consistent one percent increase each month suggesting that more monthly users are becoming daily users.
Harmony has a less consistent DAU/MAU ratio wherein we see an increase from June to August and drop off from August to October.
Unlike Optimism, which is seeing a consistent and gradual growth that is also shared in its retention, Harmony saw a major loss in monthly active users over the months of June to August while daily active users dropped by little in comparison.
This means the increase in DAU/MAU ratio for Harmony from June to August is a result of less monthly active users but relatively similar numbers of daily active users, not a result of more monthly users becoming daily users.
August to October is more reflective of this as the decline in MAU is closer in proportion to the decline in DAU.
It’s interesting to note in the Optimism MoM Cohort Retention table that the project was able to retain 49% of the 73,255 new users in May, the month prior to the event that caused their major spike in June.
They retained far less users from the June cohort, which had 232,336 new users, in the following month of July, at only 19%.
But due to the larger cohort size, they ultimately retained more users from June to July, 44,143 users, than from May to June, 35,894 users, despite the lower retention rate.
The MoM Cohort Retention table for Harmony is more straightforward in that it shows a consistent reduction in both cohort size and retention month over month.
Since June, Harmony’s average gas paid and gas per user has increased. This is in line with their decision to increase base gas fees in an effort to combat bots flooding the network despite seeing less activity on the network.
In contrast, Optimism’s average gas paid and gas per user has decreased since March of 2022.
Optimism has regularly pushed updates to reduce transaction fees and this is reflected in these charts despite the increase in users over the same time.
Aggregate gas spending was consistent for Optimism in the same time frame with a dip in July following the loss of funds in June due to a hack while transferring liquidity to Wintermute.
The majority of the funds were recovered though and gas spent returned to prior levels.
The general decline in the last three months seems in line with the decreased activity in the rest of the ecosystem.
Interestingly, despite the reduction in fee cost per user and on average, the aggregate amount of gas spent was consistently higher. This would support that activity in these months were high to keep this spend high even though average spend was reduced.
The consistent increase across the Optimism charts from January to March reveals increasing usage of the network immediately after its open mainnet launch in December, followed by successful fundraising efforts from notable VCs.
Harmony’s aggregate gas spent is consistent with the average and per user amounts. The correlation seems closely tied with the choice to increase fees and not necessarily a result of more activity as is the case with Optimism.
No comments yet