ON–100: Consumer Web3 (Part 2)
Coverage on Magic Eden, Impossible Finance, and RabbitHole.
Dec 3, 2021
🐇 🕳️ RabbitHole (Part ③) 👥 Peter Liem 🔎 Dashboard
- RabbitHole is a learn-to-earn (L2E) platform that rewards individuals for using crypto applications on smart contract blockchains like Ethereum and Polygon. Since Dec 2020, RabbitHole has facilitated about 21,000 transactions in the top 5 dapps in Ethereum; the top dapps were Uniswap v2, within the heavily active user category (48%), and Zksync within the relatively active (50.2%), and least active user (36.7%) categories respectively.
- Retention rates vary across the three cohorts — the heavily active user retention rate is about 5-6x higher than the relatively active user rate. Retention rates also decrease over time, but the greatest churn rates can be found in two periods: (1) week 1 - week 2 and (2) week 8/9 - week 10.
- Over 25% of RabbitHole users have never transacted on the Ethereum mainnet! With the costs of gas prices and Quests focused on other networks, the number of wallets from their userset using Ethereum is dwindling. Users getting onboarded now are far more willing to use Polygon and the ever rising transaction costs make it unrealistic to have future quests on the L1.
- Only 32% of users have traded NFTs and just 201 wallets out of the sample set have traded more than $10K in volume. Users who actively trade NFTs follow general trends, but most users seem to be priced out of the market despite the existing RabbitHole tasks with Opensea.
- Quests onboard a lot of new users but only retain a few. While RabbitHole is a great way to introduce new platforms to people, it struggles with retention. Somewhat greater retention rates are achieved on Polygon quests that offer financial incentives other than quest rewards.
