Research Summary
The report provides a comprehensive analysis of the WAX blockchain network’s performance in Q4 2023. It covers various aspects including the network’s tokenomics, NFT sales, DeFi ecosystem, and developer activity. The report also highlights WAX’s 2024 roadmap and the impact of its resource policies on user activity.
Key Takeaways
WAX’s Tokenomics and Network Activity
- Tokenomics Update: WAX Labs plans to implement updates to $WAX tokenomics in Q1 2024. This includes introducing an optional gas fee and eliminating the 2% fee on NFT sales and bridging fees to Ethereum. These changes could impact user transaction costs and network usage patterns.
- Decrease in Onchain Activity: WAX’s onchain activity decreased in Q4, with daily active transactions and addresses falling by 51% and 25% respectively quarter-over-quarter. This decline is attributed to a reduction in the amount of free network resources.
NFT Sales and DeFi Ecosystem
- NFT Sales: WAX’s daily NFT sales volume averaged $54,000 in Q4, marking a 32% quarter-over-quarter decrease. Funko’s Back to the Future NFT collection was the most popular, generating over $1 million in total sales volume for the quarter.
- DeFi Ecosystem Growth: WAX’s DeFi Total Value Locked (TVL) increased by 239% quarter-over-quarter to $651,000 in Q4. This growth was driven by increased deposits on Alcor Exchange and the bridging of USDT from EOS.
Developer Activity and 2024 Roadmap
- Developer Activity: The total active contracts on the WAX network increased by 2% quarter-over-quarter to 1,300. However, new contracts decreased by 30% quarter-over-quarter to 80, indicating a need for initiatives to attract new developers.
- 2024 Roadmap: WAX Labs released its 2024 roadmap, highlighting key features including the Antelope Leap 5.0 Upgrade, the introduction of a new tokenomics system, and updates to the Cloud Wallet. These developments signal potential growth catalysts for the WAX ecosystem.
Actionable Insights
- Monitor WAX’s Tokenomics Changes: The upcoming changes to WAX’s tokenomics could significantly impact user transaction costs and network usage patterns. Stakeholders should closely monitor these changes and their impact on the network’s performance.
- Assess Impact of Resource Policies: WAX’s resource policies have significantly impacted its onchain activity. Stakeholders should assess the impact of these policies on user engagement and consider strategies to mitigate any negative effects.
- Explore NFT Sales Trends: Despite a decrease in overall NFT sales volume, certain collections like Funko’s Back to the Future performed exceptionally well. Stakeholders should explore these trends to identify potential opportunities in the NFT market.
- Research the Potential of WAX’s DeFi Ecosystem: The significant growth in WAX’s DeFi TVL indicates a growing interest in its DeFi offerings. Stakeholders should research the potential of this ecosystem and consider strategies to capitalize on this growth.
- Consider Developer Initiatives: The decrease in new contracts on the WAX network suggests a need for initiatives to attract new developers. Stakeholders should consider strategies to incentivize developer activity and foster growth in the ecosystem.
