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Financial web3 project userbases decline; blockchain gaming has 5x user retention versus web2

Levan Kvirkvelia from on-chain analytics platform Cluster reached out to CryptoSlate to share his findings from analyzing over one hundred “web3 services.”

Cluster, which is still in beta, analyzes data from critical blockchain services, including user retention, bot activity, and active user numbers. The platform currently supports Polygon and BNB Chain.

The data from Cluster revealed that over the 100+ projects reviewed by Cluster, only five had seen an increase in user base year-on-year. However, an area within crypto that stood out was web3 gaming, where use retention was three to seven times higher than in web2. Kvirkvelia concluded that the data suggested that,

“the next big things are not in finance but in gaming… users are not tied to the use of crypto financial instruments.”

The platform allows users to create dashboards from on-chain data, similar to Dune. However, Cluster focuses on bot interaction and user retention to measure the true human interaction with blockchain projects rather than raw financial data.

Source: Usecluster.com

From the Cluster rankings page, five of the first eight projects have a label warning users of the high level of bots active within the project. Sunflower Land on Polygon has recorded 11,700 monthly active users, yet 68.28% are reportedly bots.

According to Cluster, 33.99% of activity on Polygon’s Uniswap V3 is also the result of bot actions. For a web3 DEX, this amount of bot activity is unlikely to be a significant issue as arbitrage and trading bots are often used to smooth out prices and provide a better experience for end users. However, a high number of bots on a web3 gaming platform may be a more significant cause for alarm from developers.

Source: usecluster.com

The activity on Polygon’s Uniswap V3 has been steadily increasing throughout 2022, yet the number of transactions per user has declined since May. Over seven days, user retention for the DEX is staggeringly high at 13.91%, around double the average retention for apps in web2.

Kvirkvelia shared a dashboard created by the Cluster team that analyzed…


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