![]() Here’s what those segments look like across the Bitcoin and Ethereum blockchains. Late institutional: Wallets that became active on or after Januwith holdings above $10 million.Late professional: Wallets that became active on or after Januwith holdings between $10,000 and $10 million.Late retail: Wallets that became active on or after Januwith holdings below $10,000.Early institutional: Wallets active since before Januwith holdings above $10 million.Early professional: Wallets active since before Januwith holdings between $10,000 and $10 million.Early retail: Wallets active since before Januwith holdings below $10,000 USD.By separating wallets along those two axes, we came up with six separate segments, though of course an exchange could look at more segments if they separated wallets more granularly. However, for the purposes of this exercise, we’ll focus on two simple ones: overall holdings and wallet age. On-chain data-based user segmentation can take many forms, as there are several characteristics a business can use to compare crypto wallets. Segmenting crypto users by wallet age and holdings How exactly can they do it? In this guide, we’ll lay out a sample model for exchange user segmentation based on on-chain data, and show you how those segments translate into insights that can drive ROI in exchanges’ user acquisition and retention strategies. Armed with that data, exchanges can make data-driven decisions about where to focus their user acquisition and retention efforts. Only in cryptocurrency can you see the holdings, transaction habits, and product preferences of your users and prospects in real time. Luckily, cryptocurrency’s inherent transparency allows exchanges to segment more effectively than in any other industry. Exchanges need to segment their users, and focus on onboarding and retaining the ones that will drive the best outcomes for their business. We approximate that growth on the graph below, which shows the number of active or balance-holding personal wallets - also known as unhosted wallets, as they are not hosted by a service and are under the sole control of the owner - across all blockchains Chainalysis supports over the last five years.Įxchanges who can win over the crypto users behind those wallets and take market share now will be in the best position to reap the rewards when crypto winter ends and transaction volumes pick up again. However, at the same time, the number of cryptocurrency users is still increasing. Since the start of 2022, the number of active centralized cryptocurrency exchanges has fallen from 750 to 640, due to pressure from decreasing transaction volumes amidst harsh market conditions, and ever-increasing competition from decentralized exchanges (DEXes). With Bitcoin’s price up over 50% in 2023, crypto winter may be thawing, but business is still tough nonetheless for exchanges. Sign up here to download the full report! This blog is a preview of our Guide to On-Chain User Segmentation for Crypto Exchanges.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |