Research Summary
The report provides an in-depth analysis of Matcha, a decentralized exchange (DEX) aggregator, focusing on its Q4 performance. It highlights the platform’s volume increase, unique traders, and the decline in the daily average rate of failed trades. The report also discusses the platform’s new features and upgrades.
Key Takeaways
Performance Metrics
- Volume Increase: Matcha’s trade volume increased by 58% QoQ, crossing over $1 billion. This increase implies a growth in the average trade size, reflecting the bullish sentiment in Q4.
- Unique Traders: The total unique traders on Matcha increased by 16% YoY, although there was a 16% QoQ decline. Despite the QoQ drop, the YoY increase indicates a growing user base.
- Revert Rate Decline: Matcha saw a 36% YoY decline in the daily average rate of failed trades (revert rate), from 9.5% to 6.1%. This improvement indicates the reliability of the platform.
Trading Activity
- Ethereum’s Dominance: Ethereum regained the lead in share of trades on Matcha, accounting for 26% of Matcha trades. This dominance shows the popularity of Ethereum among Matcha users.
- Popular Trading Pairs: The volume share of ETH (including ETH derivatives) and USD-pegged stablecoins grew 11% QoQ as the most popular trading pairs on Matcha. This growth may be attributed to ETH ETF speculation.
Platform Upgrades
- New Features: In Q4, Matcha added support for cross-chain trading and implemented a series of updates to its limit order product. These upgrades enhance the platform’s functionality and user experience.
Actionable Insights
- Monitor Matcha’s Performance: Given the significant increase in Matcha’s trade volume and the growth in unique traders, it would be beneficial to keep an eye on the platform’s performance metrics.
- Explore Ethereum Trading on Matcha: With Ethereum regaining the lead in share of trades on Matcha, it might be worth exploring Ethereum trading on the platform.
- Consider Matcha’s New Features: Matcha’s new features and upgrades, such as support for cross-chain trading and updates to its limit order product, could enhance trading experiences. It would be worthwhile to consider these features when using the platform.
