DeFi Weekly Report | Week 34, 2021

A bird's eye view of the money flows across blockchains and within each DeFi building block

Aug 28, 2021

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On-Chain Metrics

Total Addresses

The number of total wallets on Polygon is quickly approaching the 51 million threshold, which is only about 40 million wallets (44%) away from Binance Smart Chain.

Biểu đồ — Data Sources: Etherscan, Bscscan, Polygonscan

Polygon's number of wallets is growing at a rapid pace, at about 494,000 per day. Meanwhile, Binance Smart Chain and Ethereum are slowing down, with an average of 149,000 and 101,000 wallets added per day, respectively.

Daily Active Addresses by Chain

The daily active addresses volume of this week showed little changes as Binance Smart Chain still has about 1 million active wallets per day, while Ethereum only has 480,000. The number of daily active wallets on Polygon increased but could not reach a breakthrough with only 150,000 wallets.

Daily Transactions by Chain

Ethereum’s transaction volume of this week did not vary significantly, remaining around 1.2 million transactions per day. Meanwhile, the quantity of tx on Binance Smart Chain has decreased dramatically from 10 million to 6.6 million, increasing Polygon's ability to overtake Binance Smart Chain rank with 6 million tx per day.

Binance Smart Chain's tx/address ratio has dropped from 10 to 5.8 this week. Meanwhile, Polygon's index soared to 40 during the week before falling back at the end. Ethereum gained marginally to 2.6 tx/address.

Decentralized Finance

Overview

The total value locked by chain this week barely changed compared to last week with the TVL remaining at about $135.3 billion. This week, Avalanche gained a lot of attraction when showing significant growth, increasing from $341 million to $1.73 billion in just 7 days.

Furthermore, Solana, Terra, and Polygon experience fluctuations when Solana's TVL exceeds $2.5 billion (up 9.62% ). Meanwhile, Polygon and Terra's TVL have reached the same amount of $5.7-5.8 billion.

Total Value Locked by Category

Ethereum

This week, Ethereum's TVL fell slightly to $92.8 billion, though remaining on an upward trend. Despite a little decline, the Lending sector maintained its 42% share of TVL, followed by DEXs sector with 32.36%. The Assets and Derivatives sector both increased by 16.1% and 6.9%, respectively.

Binance Smart Chain

This week, Binance Smart Chain's TVL officially exceeded the $25 billion mark, reaching $26.5 billion. Binance Smart Chain's TVL by sector is gradually changing as the Derivatives sector soared, hitting $1.18 billion TVL (+92.47% from previous week) and increasing its market share from 2.27% to 4.47%. DEXs increased their market share by 62.48%, while the Assets and Lending sector experienced a little drop.

Polygon

This week, Polygon’s TVL fell marginally, from $6.44 billion to $5.8 billion. Over the last three weeks, there has been an obvious downward trend in DEXs with TVL falling from $3.9 billion to $3 billion.

A Closer Look in DeFi

Decentralized Exchanges

DEXs’ Liquidity by Chain

The DEXs’ liquidity on Binance Smart Chain continues on an upward trend reaching $16.5 billion. Meanwhile, Polygon shows a severe fall, while Ethereum’s growth is slowing down.

DEXs’ Liquidity by Protocol

PancakeSwap has officially overtaken Curve to become the largest DEX’s liquidity volume at the moment, with approximately $12 billion. SushiSwap ranked second after Uniswap V2 in terms of liquidity last week, reaching $5.61 billion while Uniswap V2 had $5.74 billion.

Weekly DEX Trading Volume

Total DEX trading volume is still on the rise, increasing by 6.4% this week to $35.1 billion. In which, Uniswap V2 and Uniswap V3 accounted for 55% of the total (down 2.8% compared to last week). The trading volume of PancakeSwap climbed to $7.38 billion, representing 20% of overall trading activity.

Daily Active Users

The PancakeSwap DAU continues to rise, reaching the 289,500 threshold in the prior week.

While QuickSwap DAU is increasing, the DAU of SushiSwap, Uniswap v2, Uniswap v3, and 0x Native are decreasing.

Lending Landscape

Lending Value Locked by Chain

This week, the Lending sector’s TVL fell marginally by 2.1% to $46.7 billion. Lending on Ethereum continues to draw the highest value, accounting for 83.46% ($39 billion).

Lending Value Locked by Protocol

In general, lending protocols have a decrease in TVL. In which, MakerDAO remains the largest lending protocol with $11.88 billion, followed by Aave v2 with $11.5 billion.

Outstanding Loan Amount by Protocol

This week, Compound closely followed Aave v2 in terms of outstanding loans with $8.53 billion. Meanwhile, the outstanding loans of Venus and Aave Matic have slightly dropped.

Derivatives (Ethereum)

For the first time, the total perceptual swap trading volume hit an all-time high of $800 million. In particular, dYdX L2 has experienced remarkable growth, officially breaking the $600 million volume per day threshold. In May, Perpetual Protocol's ATH volume was just around $485 million.

Fundraising Spotlight

Many projects have successfully raised funding in the last week, the most notable of which is Blockstream with $210 million.

Non-Fungible Tokens

With only four days before the end of August, the total NFT Art sales volume by marketplace has nearly hit $500 million. Artblocks is the market leader, with a total volume of up to $430 million.

OpenSea Growth

From the beginning of 2021 till now, OpenSea's cumulative trading volume has officially surpassed the $3 billion mark.

In addition to volume, OpenSea DAU grew from 400 to over 42,000 in less than 8 months.

Trend to Watch : Fraction NFT

This week, Cryptopathic, the owner of Feisty Doge NFT, has fractioned the NFT by using Fractional protocol, with an ATH valuation of up to $100 million. Shortly after, Sisyphus unveiled the NFT Etherrock #721 through Fractional, which is presently worth $9.5 million.

With the rapid development of NFT market, holding a tiny portion of a large NFT is a need. After the meme-coin and animal coin trend ends, this may become the next massive movement.

If the NFT trend is booming, we should pay close attention to Beta Finance, a protocol that allows users to short illiquid assets.

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