DeFi Weekly Report | Week 40, 2021

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

Oct 10, 2021

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On-Chain Metrics

Total Addresses

This week, the number of wallets on the Polygon increased sharply and reached about 97.7 million wallets, which caused the gap with Binance Smart Chain to plummet to about 695,000 wallets.

The number of New Addresses on Polygon increases by an average of more than 970,000 each day. This number of Binance Smart Chain is 172,000, and Ethereum is 100,000.

Daily Active Addresses

Binance Smart Chain's active addresses continue to grow, reaching the ATH at 1,345 million wallets. After a few months of sideways, this number of Ethereum has also increased and reached around 450,000 - 500,000 wallets.

In addition, Polygon also has significant growth and has surpassed Ethereum at some point.

Daily Transactions

After nearly three consecutive months of decline, BSC's trading volume this week is growing again and reaches 7.8 million transactions/day.

In contrast, although the number of active wallets and addresses tends to increase, the transaction volume of Polygon continues to decrease.

Layer 2

Layer 2: Total Addresses

Total Addresses of Arbitrum has reached 200,000, but on average, the number of new wallets created on Arbitrum is only about 2000 wallets/day. Compared to the previous week, the wallet growth rate is relatively slow and has decreased by 40%.

With an average growth rate of more than 4700 wallets/day, Optimism's Total Addresses volume has reached 174,000, predicting Optimism can surpass Arbtrium in the next few weeks.

Layer 2: Daily Transactions

After the rapid growth, Arbitrum's daily transactions number has dropped dramatically, to the point of being lower than Optimism's, although this figure for Optimism has also continued to decline over the past week.

Layer 2: Total Value Locked

In general, the TVL of all three Layers 2 Chain did not have strong fluctuations this week.

In which, TVL of Arbitrum is still maintaining at $1.7 billion, this figure of Optimism is $174 million, and Boba Network is $ 37.3 million.

Decentralized Finance

Total Value Locked

Total Value Locked this week increased by 14%, surpassing the $160 billion mark and reaching the $200 billion mark. It can be observed that Fantom's TVL increased the most by 57.69%, from $2.07 billion to $3.27 billion.

Solana and Terra's TVL both hit $10 billion, and Terra can be seen continuing to increase.

Meanwhile, Polygon's figures continue to fall to lower levels than Avalanche's; and Fantom is predicted to start a fast and robust rising wave soon.

Total Value Locked by Category

Ethereum

This week, Ethereum's Value Locked is back in the ATH zone, up 15.21% and hitting $108 billion.

Lending still accounts for the majority of the money on Ethereum, followed by DEXs.

The derivatives sector has surpassed the peak to create ATH at $ 8.9 billion, which is a good sign for this sector in the near future (Q4 2021).

Binance Smart Chain

The TVL of Binance Smart Chain increased slightly by 6.84% to 19.71 billion. This number is only about 20 billion dollars away from ATH.

Some points that can be observed are:

- DEXs continue to lose cash flow attraction

- Lending is increasing its market share in TVL.

- Sector Assets and Derivatives have not received much attention.

Polygon

Polygon's Total Value Locked fell 8.3% to $4.46 billion. The main reason came from DEXs when TVL decreased significantly from the beginning of September.

Solana

Solana's TVL grew 8.96% to $10.6 billion. DEXs are showing signs of slowing down, Assets continue to grow, and Lending has not exploded.

Avalanche

Avalanche's TVL hit $4.5 billion this week, and it can be seen that Avalanche's TVL has grown well and continuously reached ATH. Lending still accounts for a large proportion of 52.15%, followed by DEXs with 37.33%.

Fantom

Fantom's TVL surged 57.69% to an ATH at $3.27 billion. It is dominated by Sector Assets with more than 54.23%, followed by DEXs with more than 22.76%.

Terra

Terra's TVL has grown to an ATH of $10 billion (up 19.52%). Anchor (Lending) & Lido (Derivatives) account for a large proportion of TVL.

A Closer Look in DeFi

Decentralized Exchange

Liquidity by Protocol

Curve continues to be the protocol with the most liquidity, its value at around $13.22 billion.

Notable this week:

- Saber is down to the same metrics as Uniswap v3.

- Sushiswap surpasses Pancakeswap in terms of liquidity.

*Note: Debank's numbers a few weeks ago were wrongly counted, so we got the correct number from Pancakeswap.

Weekly Trading Volume

Trading volume this week increased slightly by 6.38% to $22.95 billion. Uniswap accounted for more than $10 billion in trading volume, followed by Pancakeswap with $4.79 billion.

Daily Active Users

Pancakeswap DAU continued to increase enormously to ATH 385,000, up 29.75% from the previous week.

Daily Active users of Uniswap V2 dropped sharply. In contrast, DAUs Uniswap V3 is experiencing quite good growth. Meanwhile, Quickswap has an unstable increase in the range of 15,000 - 30,000 DAUs.

Lending Landscape

MakerDAO continues to be the leading lending protocol for TVL and is still tends to increase.

Compound has yet to show an apparent recovery after falling since early September.

Although it has only been launched for 4 days, Aave_AVAX has surpassed BenQi and is moving towards its next goal, Aave_MATIC.

Geist Finance on Fantom has reached TVL of more than $500 million in just 2 days, which is a remarkable growth rate.

Outstanding Loans by Protocol

Outstanding loans of Compound dropped sharply to 6.1 billion, about 6.78 billion lower than MakerDAO.

Meanwhile, Aave V2 hasn't dropped too much and is still the lending protocol with an enormous outstanding volume of more than $8.1 billion.

Derivatives (Ethereum)

The average perpetual swap trading volume is at $2.25 billion. In which, dYdX L2 accounts for 95.69% of the total trading volume, 22.2 times more than Perpetual Protocol.

Non Fungible Tokens

OpenSea

The chart clearly shows that Opensea's Transaction Volume increases again at $163 million, but Opensea's DAUs have plummeted to 25,000. This could signify that few people are involved in buying and selling NFTs, but the NFTs that are bought and sold are highly valued.

Fundraising Spotlight

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