DeFi Weekly Report | Week 35, 2021

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

Sep 04, 2021

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On-Chain Metrics

Total Addresses

The number of Polygon wallets increased sharply this week. With more than 54 million wallets, the gap between Polygon and Binance Smart Chain is about 40.6% ( up 8% compared to the last week).

Biểu đồ — Source: Etherscan, Bscscan, Polygonscan

Polygon’s average growth rate is at the 550,000 wallets threshold per day. Meanwhile, such numbers of Binance Smart Chain and Ethereum have stopped at 200,000 and 102,000 wallets, respectively.

Daily Active Addresses by Chain

Binance Smart Chain continues to dominate in the number of active wallets, with over 1 million wallets. Ethereum comes in second with about 520,000 active wallets per day. Despite its rapid wallet growth, Polygon has a very low number of active wallets, approximately 180,000.

Daily Transactions

Polygon previously exceeded Binance Smart Chain in the number of transactions. Binance Smart Chain, however, recovered as the lead right after with more than 7.9 million txs per day. Meanwhile, Polygon and Ethereum have about 6.6 million and 1.2 million txs per day, respectively.

Polygon’s tx/address ratio is in the range of 35-40. This ratio of Binance Smart Chain has increased from 5.6 to 7.7, and Ethereum remained at 2.4.

Decentralized Finance

Overview

The Total Value Locked by chain has officially surpassed the previous peak of $151 billion set in May, reaching $155 billion this week.

Solana's TVL has risen to $3.7 billion this week, narrowing the gap with Polygon to $2.35 billion. Meanwhile, Avalanche has surpassed the $2.2 billion milestone (up 31%). Terra has also officially overtaken Polygon to become the third-largest TVL locked by chain, after Ethereum and Binance Smart Chain.

Total Value Locked by Category

Ethereum

Ethereum's TVL has officially surpassed the $100 billion mark, reaching $107 billion, and continues on the rise. Lending is the dominant sector in TVL with a market share of 42.53% this week. DEXs came in second with 31.36%.

Despite a small market share value, Assets earned the highest growth rate with a 26% increase over the previous week, followed by Derivatives with a 23.5% increase.

Binance Smart Chain

Binance Smart Chain's TVL surpassed the $28 billion milestone this week, approximately $17 billion far from the ATH. The sector drawing the largest money flow on Binance Smart Chain is still the DEXs sector with 58% ($16.27 billion), followed by Lending with 24.83% ($6.96 billion).

Tranchess dominates the Derivatives sector with more than 96% of the TVL, which contributes to the robust growth rate of the Derivatives, increasing the TVL from $1.1 billion to $1.39 billion.

Polygon

Polygon's TVL surpassed the $6 billion mark this week (a slight increase of 4.72%). DEXs, on the other hand, maintains their downward trend in terms of value attraction. Meanwhile, Lending shows a quickly increasing growth rate in TVL with a market share of 40.08%.

Solana

Solana's TVL is rapidly expanding and is on track to surpass the $4 billion threshold next week. Similar to any smart contract platform, DEXs on Solana continues to draw the money flow with more than 76% of the TVL. The Assets sector comes in second with $715 million accounting for 19.11%. Lending has gotten little attention on Solana ecosystem.

Avalanche

Avalanche saw a rapid increase in TVL from around $200 million to $2.2 billion in only two weeks after the ”DeFi incentives program” launched. Four protocols, including Benqi (Lending), Pangolin (AMM), Trader Joe (trading platform), and Yield Yak (Yield farming), account for more than 96% of the Avalanche's TVL.

A Closer Look in DeFi

Decentralized Exchanges

DEXs’ Liquidity by Chain

DEXs’ liquidity on Solana is now nearly reaching Polygon's $2.87 billion mark, away from about $252 million. It is likely that Solana will surpass Polygon as its continuing rapid growth rate next week.

Furthermore, DEXs’ liquidity on Ethereum has begun to increase again, hitting the $30 billion mark.

DEXs’ Liquidity by Protocol

Curve recaptured the top position in terms of liquidity this week, with more than $12.5 billion, while Pancakeswap came in second with $11.1 billion (down 4.93%). Meanwhile, SushiSwap is about to overtake Uniswap v2 ($5.97 billion) with approximately $242 million.

Meanwhile, Raydium has surpassed Ellipsis and QuickSwap in terms of liquidity with more than $1.1 billion.

Weekly DEX Trading Volume

The total DEX trading volume has yet to exceed the $40 billion mark. The entire volume hit around $32 billion this week (down 8.75% compared to last week). The total trading volume of Uniswap v2, Uniswap v3, and PancakeSwap was $23.6 billion, accounting for more than 73.6% of the total.

Daily Active Users

PancakeSwap has a big number of DAU with more than 300,000 currently.

Uniswap v2, v3 DAU decreased slightly last week. Meanwhile, QuickSwap and SushiSwap remain a constant number of DAU.

Lending Landscape

Lending Value Locked by Chain

Lending’s TVL on Ethereum shows a significant growth rate this week with an increase of approximately 17,45%, from $39 billion to $45 billion. Lending on BSC remains a slight increase with 14,35%, accounting for $6.96 billion.

Lending Value Locked by Protocol

MakerDAO and Aave are still towards the top in the Lending sector. Both have around $13.5-13.7 billion in TVL. Meanwhile, Compound is growing its market share in third place. Venus shows no change in TVL this week, but Aave Matic rose by more than 10.5% (up $2.25 billion).

Outstanding Loan Amount by Protocol

Compound, though having a smaller amount of TVL than MakerDAO and Aave, has the largest outstanding loan of about $9.3 billion. Aave comes in second with approximately $9 billion. Furthermore, MakerDAO and Aave_matic have increased marginally.

Derivatives (Ethereum)

The total perpetual trading volume has skyrocketed by more than $2.6 billion. In which, dYdX’s daily transactions officially surpassed the $2 billion mark. However, the trading volume of dYdX is now around $300 million per day.

Although Perpetual protocol was formerly the market leader in the Perpetual Swap sector, its volume is now approximately $90-100 million per day. Hopefully, the next step to Layer 2 should result in numerous modifications to the Perpetual protocol in the future.

Non-Fungible Tokens

The total NFT art sale volume had topped the ATH by the end of August, hitting $715 million. In which, Art Blocks accounted for 87.6% ( ~ $626.9 million).

Alpha: Art Blocks currently lacks a governance token; nevertheless, users should engage with Art Blocks’s Smart Contract in case of retroactive lately.

OpenSea Growth

In August, OpenSea saw a rapid expansion, with a total trading volume of more than $3.4 billion and almost 50,000 DAU. OpenSea, in the same case with Art Blocks, does not have a governance token, let’s check what’s next to do?

Fraction NFT Trend

Yesterday, the DOG NFT (DOG), a fraction of NFT Doge bought by PleasrDAO with $4 million three months ago, was successfully auctioned off and is currently worth $250 million appraised by Miso.

Previously, Cryptopathic - the owner of Feisty Doge NFT, has fractioned the NFT by using the NFT Fractional protocol, with an ATH valuation of up to $100 million.

Fraction NFT is highly likely to be the next trend after the meme coin, animal coin, or safe token craze.

Fundraising Spotlight

Many projects have successfully raised funding in the last week, the most notable of which is Arbitrum with $120 million.

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