Hashflow (HFT) Q2'24

In Q2'24, Hashflow implemented a fee switch that would only take a fee when Hashflow's price is significantly better than other options. The amount that is significant and how much of that amount that is taken is still being optimized and iterated on.

Hashflow (HFT) Q2’24 Performance Analysis

Key Metrics Overview

Hashflow’s daily average trading volume increased 8% QoQ from $14.6 million to $15.7 million in Q2’24. This growth was primarily driven by Arbitrum, Optimism, and Avalanche, which saw 74%, 153%, and 23% QoQ increases, respectively, in daily average volume. Hashflow’s Ethereum volumes fell 11% QoQ from $10.9 million to $9.7 million.

The average number of contracts transacting with Hashflow fell from 130 in Q1 to 118 in Q2 (down 10% QoQ). This includes native users and aggregation routers that use Hashflow, but it excludes EOAs that interact with an aggregator directly instead of Hashflow.

Average daily active addresses increased 15% QoQ from 778 to 895, while average daily new addresses increased 23% QoQ from 263 to 323. This was the first QoQ increase for both metrics since Q3’23.

The average number of transactions per day increased by 71% from 1,900 to 3,200 in Q2. Arbitrum and Optimism accounted for 68% of trades on Hashflow in Q2.

HFT’s circulating market cap decreased 50% QoQ from $168.4 million to $84 million in Q2’24. Despite this drop in market cap, HFT holders increased 2% QoQ from 13,000 to 13,300. HFT was also bridged to Arbitrum in June, making it more accessible for users.

12 million HFT was staked by Q2’24 end, up 59% QoQ from 7.5 million. Of this, 6.8 million HFT was staked for a period longer than six months (180+ days), representing 57% of all HFT staked.

Key Metrics Deep Dive

Product Usage

Hashflow’s daily average trading volume increased 8% QoQ from $14.6 million to $15.7 million in Q2’24. This growth was primarily driven by Arbitrum, Optimism, and Avalanche, which saw 74%, 153%, and 23% QoQ increases, respectively, in daily average volume. Hashflow’s Ethereum volumes fell 11% QoQ from $10.9 million to $9.7 million.

With Ethereum’s scaling roadmap primarily focused on L2 scaling, the gradual shift of trading volume from L1s to L2s is expected. Each deployment’s share of trading volume on Hashflow in Q2 was as follows:

Arbitrum: 34%

Optimism: 20%

Avalanche: 15%

Ethereum: 13%

BNB: 11%

Solana: 6%

Polygon: 1%

The number of daily active users (DAUs) measures how many externally owned accounts (EOAs) initiate transactions that get routed to Hashflow or use Hashflow directly. However, this report measures the number of direct contract interactions with Hashflow, not necessarily how many end users (i.e., EOAs) are driving those transactions. We count “Sources” to be native users and aggregation routers that use Hashflow, thus excluding EOAs that interact with an aggregator directly instead of Hashflow.

The average number of contracts transacting with Hashflow fell from 130 in Q1 to 118 in Q2 (down 10% QoQ). This includes native users and aggregation routers that use Hashflow, but it excludes EOAs that interact with an aggregator directly instead of Hashflow.

Hashflow is positioning to compete for the best price execution, enabling its architecture and market makers to show the best price. This strategy favors winning the end consumer, where customer and volume acquisition can be more costly with very uncertain lifetime value.

As for the raw number of traders interacting with Hashflow contracts (EOAs included), there was impressive growth in Q2. Average daily active addresses increased 15% QoQ from 778 to 895, while average daily new addresses increased 23% QoQ from 263 to 323. This was the first QoQ increase for both metrics since Q3’23.

The average number of transactions per day increased by 71% from 1,900 to 3,200 in Q2. Similarly to trading volume, the majority of this growth occurred on L2s.