The Nash Effect; First data analysis of 5M+ staked NEX!
First of all: congratulations to the Nash team and community for the launch of the MVP. Being a company founder myself I know how hard and difficult it is to get to this point. And this is even more stressful with 1000’s of people watching you and asking every day when it’s ready.
It looks great, KYC works like a charm, the interface is user-friendly - a great start. You have built the most important part; the Flywheel. Now we should get it moving. I’m really excited for what’s coming!
It’s been a while I introduced the concept of The Nash Effect to the community. If you haven’t read those posts, check them out here if you like:
- The Nash Effect
- The Nash effect part 2
- Product virality: The untapped potential of Nash payments
- Building the foundation for sustainable growth towards 100K active Nash users
But in short;
The compounding effect on “Collective Staking” efforts builds the initial speed of the flywheel during the first growth period of Nash when it’s officially launched. This effect is what we call “The Nash Effect” - the collective ‘push’ for the Nash Flywheel to help it get up and rolling.
But as I stated, this isn’t the only ‘growth loop’ we can create and build. Since two weeks live, we can cautiously start analyzing and tracking the performance of the collective staking efforts. So let’s get to it. I’ve created this post together with Fabibi (@fstepho). I was impressed by his Nash staking dashboard. He has done an amazing job visualizing the staking data using the available blockchain data so I asked if he could help visualize the data. So let’s analyze the first growth loop; Staking!.
In two weeks more 5 million NEX has been staked - this is more than 10% of the total supply and 17.6% of the circulating supply. Amazing. For me personally above my expectations to be honest. With in total 1587 unique addresses and almost 3200 Nash staked per address, we’re off for a strong start I would say.
Biggest staker at the moment has 300K NEX staked for a max period of 24 months, in 12 different stakes.
But, with 5+ million staked there is still much room for some of the bigger NEX holders (incl. founders!) to stake. So there is some serious upside left to create more scarcity around the supply. Besides the staked amount, the average staking duration is a very important metric as this represents certain ‘trust’ in the performance of Nash performance over time. The metric that I find interesting is the average staking period per address is at 15.7 months. Over 50% (!) of all addresses have staked for the full period of 24 months. This is an extremely positive sign which also will help push more people to stake for a longer period.
I’m very curious to see how much of the 1-month staking slots (19.29%) will convert to longer staking duration as their first staking batch has completed.
Volume and the impact on NEX price.
As we all would like to see some substantial volume as soon as possible, we have to realize we are just out of the gate from a 2-year development journey. Volume is a nice vanity metric but it is important to understand that volume is of course a lagging indicator of success. We have to focus on the leading indicators to foresee what’s coming. Leading indicators are f.e. growth rate of traffic coming to the site, the acquisition metrics of the user base. These performance indicators will tell us more about what’s to expect. Something I will start to analyze in the coming weeks.
In the ideal setup, scarcity leads to increase in price on short notice. Since go-live of the MVP, the price of Nash (NEX) has seen a pretty steady decrease in price and is slowly recovering. It is of course not a given that scarcity leads to a price increase. The disappointing sentiment amongst some “early” backers probably expecting to Go live = Immediate trading volumes = strong dividends from the get-go… clearly shows that some people don’t want to push this gigantic heavy flywheel and expectations were misaligned. Price increase only will happen once other growth loops start to get initial traction too.
The flywheel effect is the sum of a lot of small continuous pushes. Collective staking is just a start, but a great start people! Only by pushing this wheel forward with product updates, more people staking, BTC trading live on the platform, licenses, strong marketing campaigns, product virality features and so on - we will see strong growth and volume follows which leads to price increase and dividends…leading to more people staking.
So what’s next?
Let’s focus and emphasize the metrics that matter. Focus on the progress made through data. Visible progress is important for the community. We all want to be part of a winning team and success metrics should be shown to the community. By analyzing the data we can track and highlight on what to improve. The staking metrics from Fabibi are a good start and give us a first high-level overview of Nash user behavior (combined with some vanity metrics) with some interesting data points. They show and proof the first trust in Nash.
Next post, we can dive a bit deeper in analyzing the marketing funnel of Nash to come up with some ideas to get more traction and strategies on user acquisition.
Let us know your thoughts if you have any feedback on metrics or would like to know more!
Fabibi & Rodger