As we sat down to reflect on the past quarter, we couldn’t help but think back to the start of the year 2023. Like many of us, we had high hopes and big aspirations for what this year would bring to our users. And while we’ve faced our fair share of challenges, we’re proud to say that we’re well on our way to achieving those goals. In fact, just last week we looked at our progress report and felt a sense of pride and accomplishment once again.
The numbers are in, and we are thrilled to announce that we have made significant progress at CrowdSwap this year. Our team has been hard at work improving the user experience, and we are happy to report that our users are more satisfied than ever before. We have also seen significant growth in our user base and engagement on our platform, which is a testament to the hard work of our team and the value we provide to our users. We can’t wait to go through the details with you and share our excitement about the future of CrowdSwap. Let’s get started!
In Q1, we launched several new services that have greatly enhanced our platform. One of the most exciting is the integration of the Arbitrum Network, which allows for fast and efficient decentralized trading of a wide range of tokens. We’ve also introduced Crowd Sales, which makes it easy for projects to raise capital and for investors to seize new investment opportunities.
In addition, we’ve launched CrowDEX, a revolutionary decentralized exchange platform that eliminates intermediaries and provides full asset control to our users. And, our crosschain feature has been optimized to offer unparalleled performance and functionality, enabling seamless token swapping across various blockchains. These services demonstrate our commitment to delivering cutting-edge solutions that enable our users to trade with confidence and efficiency.
2022 was an exciting one for CrowdSwap, as we saw growth in several key areas. The introduction of fast lane transactions (FLT) resulted in a significant increase in the number of transactions processed via our platform.
We started mapping the first transactions to swaps via our app in Q1 2022. In Q3, the transactions then increased abruptly. This is mainly due to fast lane transactions (FLT). The introduction of opportunities coupled with the simplified investment processes led to a sharp increase in transactions.
From this point on, we also only count FLTs! Unlike “normal” single transactions, FLTs bundle multiple transactions into one. So it may well be that one FLT contains 3-7 “normal” transactions. From Q3 onwards, we will in any case only calculate in these FLTs, which will bring comparability for future quarters.
We have been able to report a new FLT record every quarter so far, even if it is not as strong compared to the last quarter. But does that affect the volume in USD? We will look at this as the next statistic.
We have also seen a continuous increase in USD volume, which has a significant impact on the revenue generated by the protocol. Despite the challenges faced.
In terms of volume, we see a continuous increase from Q1 2022 in terms of absolute numbers. From Q1/2022 to Q2/2022 it should come as no surprise that we achieved a strong increase of more than 100%. In Q3, with the introduction of the opportunities, the volumes then also increased with the FLTs.
In Q4, we saw a similar increase in absolute terms as from Q2 to Q3 (4 b zw. 3M USD), although this is of course a smaller percentage. In Q1, the volume then increased again significantly, so that we currently reach a quarterly volume of 18M USD.
Q1/2023, in contrast to Q4, has produced more opportunities, which explain the increase in volume to some extent. And if we look again at the number of FLTs to volume, the increase in volume has come about due to higher transaction volumes.
!! IMPORTANT: We do not use any market makers at CrowdSwap. Other projects can’t even manage without them, or would have no volume. We have consciously decided against it, in order to be able to present also authentic numbers!!!
We have been able to achieve a strong growth rate in terms of the number of users on our platform, with a steady growth of 30% per quarter in terms of wallet addresses.
In terms of year-over-year quarter performance (YoY), the increases have been impressive, with a clear indication of success. We believe that the transaction-to-volume ratio is the key figure that can be used to measure success, and we are proud to say that we have been able to maintain a high ratio throughout the past year.
In terms of financing, the revenue-cost ratio has improved significantly over the past year, with a break-even expected for 2023. While we have had a burn-rate of 80-100% in 2022, we were able to refinance at least 20% from sales in Q4, and this ratio has continued to improve. However, we do see a decline in revenue in March, which may be due to the market situation as well as fewer innovations on the app.
Looking forward, we recognize that increasing the ratio of total users to transaction-to-volume will be one of the biggest tasks for the marketing team in the coming quarters. Nonetheless, we remain optimistic and committed to providing our users with a reliable and user-friendly platform for their transactions.
As we wrap up this Q1 2023 report, we want to thank you, our valued CROWDers, for taking the time to catch up on the exciting progress we’ve made at CrowdSwap. We couldn’t have done it without your continued support and trust in our platform.
The Q1 2023 report for CrowdSwap is nothing short of exciting and promising. Despite the challenges faced, the team has made significant progress towards achieving their goals for the year. The integration of the Arbitrum Network, the launch of Crowd Sales and CrowDEX, as well as the optimization of the crosschain feature, new partners which started cooperation with us, have all contributed to the delivery of cutting-edge solutions that enable users to trade with confidence and efficiency.
Moreover, the impressive growth in several key areas such as the increase in the number of transactions processed and the steady growth of 30% per quarter in terms of wallet addresses, are clear indications of success. While there is still work to be done, the team remains optimistic and committed to providing a reliable and user-friendly platform for their users. With such momentum and innovation, the future of CrowdSwap looks brighter than ever before.