DeFi Weekly Report | Week 37, 2021

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

Sep 18, 2021

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On-chain Metrics

Total Addresses

The growth trends of the chains are comparable to those of last week. Polygon continues to exhibit the strongest increase by 16.90%, a translation to approximately 9.9 million wallets. Total Polygon wallets hit a record of 68.3 million.

Data Source: Etherscan , Bscscan, Polygonscan

With regards to new addresses by chain, the growth trend is significantly stable for Ethereum and BSC. On average, the number of Ethereum addresses created on a daily basis does not exceed 110,000, while that of BSC is estimated at 182,000 approximately. Meanwhile, the graph shows a powerful surge experienced by Polygon, when the number of new addresses went from 500,000 to slightly less than 1.4 million.

Daily Active Addresses

As comparable to Week 36, Week 37 was almost trendless for the three chains. The number of Ethereum and Binance daily active addresses fluctuated within the range of 500,000 and 1 million, respectively. While the same trend could be observed from Polygon, whose numbers were moving sideways between 170,000 and 190,000 in the past month, the last week showed a slight increase beyond 200,000.

Biểu đồ — Data Source: Etherscan , Bscscan, Polygonscan

Daily Transactions

The volume of Polygon transactions continued to rise above that of BSC, however, it dropped from 7 million to 5.6 million, which indicates a less than stable growth trend. The volume of transactions on BSC dropped even further from last week, hitting a record of 5.3 million from 6.2 million, which translates to a decrease of 15%. The downward trend should be expected to last, after peaking at almost 13 million by the end of July. Meanwhile, Ethereum transactions stabilized at 1.2 million.

The Ethereum ratio showed little change, remaining within the range of 2.3 to 2.4 within the past week, the trend being significantly static. By contrast, the Binance ratio declined steadily by 0.7, reaching 5.09. Similarly, the chart illustrates a downward trend of the Polygon ratio, which hit 25.8, a remarkable decrease by 3.8 from week 36.

Layer 2

Layer 2: Total Addresses

Both Optimism and Arbitrum saw a remarkable increase of their addresses by 2 and 6 times, respectively. Although the number of Optimism addresses have far exceeded that of Arbitrum, the past week signifies a strong rise of Arbitrum against Optimism. Specifically, the total number of Arbitrum addresses reached 121,000, while the number of Optimism addresses fell behind at 103,000.

Layer 2: Daily Transactions

Arbitrum demonstrates a strong growth trend, finally exceeding Optimism by a noticeable number of approximately 67,000 transactions. Total daily transactions on Optimism rose again, with an estimate of 61,000 approximately, an increase of 35%, or 16,000 transactions.

Decentralized Finance

Overview

The past week observed an increase in TVL by 5.6%, reaching over $152 billion. With regards to TVL, Ethereum and BSC still remain the largest chains, with Solana coming in third. Solana reached a TVL of $9.5 billion. Although an increase from $8.7 from week 36 was observed, Solana’s TVL fluctuated considerably, peaking at $12.2 billion midweek, before dropping to $9.5 billion. On the contrary, the trends in TVL of other chains exhibited minor fluctuations only.

Total Value Locked by Category

Ethereum

TVL of Ethereum increased slightly by 6.6%, reaching approximately $106.3 billion. Lending attracted the majority of the cash flow with an estimate of $44.3 billion, followed by DEX with an estimate of $32.9 billion, both numbers showing a positive growth from last week.

 Binance Smart Chain

TVL of BSC was finally rising again when it pulled in $25.7 billion, indicating an increase by 6.8%. DEX accounted for approximately 60.93% of total value, a comparable figure to week 36 of 57.68%. Noticeably, TVL of lending and assets sectors steadily experienced a downward trend, declining by 8.17% and 5.14% respectively.

Solana

A similar trend from last week can be observed in TVL growth of Solana, the third largest chain. An increase by 9.81%, or $856 million, although was less sharp than week 36, managed to indicate an impressive growth. DEX accounts for 63.05% of total value locked, followed by Assets, which accumulated $2.8 billion, representing 30.03% of total value locked. Within the DEX sector, Saber, Mercurial, and Orca all demonstrated considerable growth of 24.96%, 10.23%, 39.18% respectively. Meanwhile, within the Assets sector, the Sunny Protocol managed to exhibit impressive growth on a steady basis, with its TVL rising from $2 billion to $3 billion in the past week, although traction was lost towards the end of the week, with TVL falling slightly to $2.9 billion.

Avalanche

TVL of AVAX experienced modest change, recorded at $2.5 billion, which was a minor drop from approximately $2 billion within the past 7 days. The Lending sector contributed largely to the total value locked, accounting for 48.83%, followed by DEX and Assets sectors, making up about 36.82% and 14.35% respectively.

Avalanche TVL by Protocol

TVL of Avalanche ceased to grow beyond $2 billion. A large majority of TVL were captured by the four protocols Benqi, Trader Joe, Pangolin, and Yield Yak, a trend that has been observed recently.

A Closer Look in DeFi

Decentralized Exchanges

Weekly DEX Trading Volume

Total DEX volume dropped significantly from $23.8 billion to less than $15 billion. Uniswap recorded the highest volume of transactions, which is estimated at approximately $10.46 billion.

Daily DEX Active Users

Pancakeswap active users accounts for the majority, largely exceeding that of other protocols, a trend that has been steadily observed in 2021. The figure consistently increased in the past 7 days, from 273,000 to slightly less than 284,000.

The number of daily active users on Uniswap V2 +V3 plunged deeply by 80%, while that of other protocols rose slightly to moderately. Sushiswap, Quickswap, and 0x stabilized in the ranges of 4,000, 1,000, and 14,000 respectively without experiencing remarkable changes.

Lending Landscape

Lending Value Locked by Chain

Ethereum leads the Lending sector, pulling in a total value of $44.3 billion, an increase of 3.76% from $42.68 billion recorded in the previous week.

Total lending value of BSC picked up after experiencing a slight drop at the beginning of the week, finally reaching $5.6 billion. No other noticeable trend was observed.

Lending Value Locked by Protocol

The leaders in the Lending sector are MakerDAO, COMP, and AAVE v2, whose figures picked up towards the end of the week, having declined profoundly in the past month. The same trend is observed in Venus and AAVE_MATIC, although such changes were less than impactful.

Derivatives (Ethereum)

Daily perpetual swap trading volume rose beyond $1 billion, a modest increase from last week. dYdX volume is estimated to be ten times that of Perpetual Protocol. dYdX volume, while continuing to grow, experienced various fluctuations throughout the week.

Non-Fungible Tokens

Opensea

Total sales volume of opensea started to climb again, reaching $113 million, after a long period of steady decline. The trend of daily active users corresponds to that of sales volume accordingly. The total number of daily active users was observed to be on the rise, reaching 38,500 from 34,500, an increase of 11.59%.

Fundraising Spotlight

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