📊 Veve Deep Dive: Is Veve still attracting new users?
Or is it a dying platform?
Hi friends 👋
Welcome to VeveFox Insider, where I break down the the latest data and trends in the world of Veve collectibles.
In this issue, I present you the key insights from my recent video, exploring the questions:
Is Veve still attracting new users?
Are users that join actually sticking around?
Or is it just bots and users trying to make quick flip?
Let's dive right in!
TLDR
👥 I The number of wallets holding Veve items has been growing in the past couple of months, and new users are joining the platform every day.
💪 I User retention on Veve is pretty strong compared to industry benchmarks, suggesting that the platform is still attractive to new users.
🚀 I The majority of new users on Veve have a net positive accumulation and show sustained activity, suggesting that these are genuine users interested in collecting.
Despite fluctuations in new user sign-ups and a decline in interest in NFTs, VEVE's strong retention rates suggest that new users are still joining and there is potential for sustained user growth in the future.
Deep Dive
Is Veve still attracting new users?
The number of wallets holding Veve items has been growing in the past couple of months, but has been rather stagnant in September.
Although new users are still joining Veve, the daily numbers are relatively low (less than 20 new users daily on average) 🥲
There are sometimes surges in new users when popular drops occur, with over 100 users joining in a single day. This often leads to speculation about the authenticity of these users (often immediately being labeled as bots 🤖).
So let's follow the data to gain better insights.
Important Note: Whenever I refer to “New Users” or “New Active Users” I refer to users that have made their first transaction on Veve, either in the store (mint) or in the secondary market. This means the number of actual new installs or account creations on Veve might be higher.
In total 8,000+ new users joined Veve in 2023, with an average of 1,000+ new users per month.
I admit it’s a bit underwhelming, but considering the bear market and overall sentiment regarding NFTs, it's not too bad either.
Do new users on Veve actually stick around?
Alright, it seems that new users are continuing to join Veve. But how can we distinguish genuine users from bots or those who aim to take advantage of a specific popular drop?
To get a better idea, we can look at Veve’s Retention Rate.
Terminology Alert! 🤓
Retention Rate is an important business metric that calculates the percentage of users who continue using a product or service over a given time period. It is the opposite of Churn Rate. A good Retention Rate usually suggests a loyal customer base and a good customer experience or valuable product.
The table below displays the percentage of users who remain active X months after their initial activity. For example, out of the users who joined in Jan'23, 45% were still active 3 months after joining.
Compared to industry benchmarks, Veve demonstrates a strong user retention. For instance, Veve's 30-day retention rate of 47% exceeds the averages of other mobile sectors such as media entertainment (43%), e-commerce retail (37%), technology (33%), and gaming (27%). This indicates that new users tend to remain engaged after joining Veve.
In the first month after joining, a user is typically active (i.e., making a transaction) on 2-3 days. For users who continue using the platform, their activity increases to 3-4 days per month. This can be seen as another indicator for active user engagement.
Are new users Flippers or Collectors?
The majority of new users have a net positive accumulation, purchasing more items than they sell. About 65% of new users purchased more items than they sold in their first month of joining.
This trend is consistent over time, with the majority of users stacking items rather than flipping them or selling off their items, which suggests they are interested in collecting.
My final thoughts 💭
User growth for Veve has been weak this year due to the decline in interest in NFTs and overall unfavourable market conditions. However, despite the challenges, Veve is still attracting new users every day and those who join have above-average retention and are active on the platform, indicating potential for sustained user growth in the future 🚀✨
That's it for this edition of VeveFox Insider!
Thanks for reading, I hope you found this analysis useful.
I am just starting out with this newsletter format and my goal is to keep improving and make sure to provide you with valuable insights. So feel free let me know what you think and what you would like to see more of. All feedback is welcome!
— Kelly 🦊
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Note: I am not associated with Veve. I'm simply a fox who is passionate about Data and Veve, and I'm excited to share my insights with all of you.
Disclaimer: Nothing in this or any other VeveFox Insider publication should be considered as financial or investment advice. Always exercise caution within the NFT space.