DeFi Weekly Report | Week 43, 2021

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

Oct 30, 2021

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On-Chain Metrics

Total Addresses

This week, the total addresses of Binance Smart Chain increased by 7.68% to 109 million addresses, increasing the gap between BSC and Polygon to 103 million addresses. Ethereum still saw a slight increase in the number of new wallets last week.

The number of new addresses of Binance Smart Chain increased dramatically from October 22nd to October 25th, with an average of more than 1.6 million addresses created per day.

Polygon has only about 240,000 new addresses created, much less than in the previous weeks.

Daily Active Addresses

The total number of wallets of Binance Smart Chain increased, causing the daily active address to rise sharply. Specifically, this week, the number of active addresses on Binance Smart Chain has reached 1.9 million wallets per day, increasing more than 32.89%.

Ethereum went through a period of sideways movement and did not have any breakouts. However, this week, the number of active wallets of Ethereum is showing signs of increasing again, currently at 660,000 wallets per day.

In contrast, the number of active wallets of Polygon is still decreasing and is currently reaching 284,000 wallets per day.

Daily Transactions

The daily transactions of Binance Smart Chain increased in line with the number of daily active addresses, reaching 10.8 million transactions this week. Ethereum and Polygon are also showing signs of growth in daily transaction volume this week as Ethereum hit 1.5 million transactions/day (+18.26%) and Polygon reached 4.6 million transactions/day (+39.94%).

Layer 2

Layer 2: Total Addresses

Arbitrum's total number of addresses is about to hit 245,000, followed by Optimism, with the gap currently at 24,500 addresses.

Layer 2: Daily Transactions

The number of transactions per day of Arbitrum and Optimism is quite close. Specifically, Arbitrum has 35,900 transactions/day, and this number of Optimism is 32,600.

Layer 2: Total Value Locked

Although new addresses have not increased sharply, Arbitrum's TVL is returning to ATH at $2.4 billion. Meanwhile, Optimism and Boba Network have not had any breakthrough yet.

Alpha leak: Next week, Boba Network officially has its first DApps - Oolong Swap. It is predicted that Boba Network's TVL volume will increase sharply when Oolong Swap is launched.

Decentralized Finance

Total Value Locked

This week, DeFi's total value locked increased by $5 billion (equivalent to 2.54%), bringing TVL to $202 billion.

In general, all chains have a slight decrease in TVL due to the influence of the market but still have a slight increase compared to the previous week.

Solana kept TVL at $12.6 billion, Fantom and Avalanche rose slightly to $8.4 billion. Meanwhile, Terra is down slightly to $9.6 billion, and Polygon is still $4.6 billion.

Total Value Locked by Category

Ethereum

Ethereum's TVL this week increased slightly by 9.14% from last week, reaching $136 billion. Lending is still the sector with the highest number of TVL on Ethereum, with more than $50.8 billion (about 37.24%). In second place is DEX with $43.4 billion (approximately 31.85%). Total value locked of the Derivatives sector hit $10 billion this week.

Binance Smart Chain

This week, TVL of Binance Smart Chain dropped slightly to $22.75 billion. DEX and Lending continue to dominate TVL on Binance Smart Chain with more than 74% of the total market share. Sector Derivatives is still keeping a stable development.

Solana

Solana's TVL still rose slightly last week to $12.6 billion. DEX is still the sector that attracts the most cash flow on Solana and accounts for more than 53.42% of the total TVL. Following are Assets with many Yield Aggregator projects, bringing the sector's TVL to $4.5 billion (accounting for about 35.74%). Sector Derivatives is the sector with the best growth on Solana this week with 26.43%. Lending on Solana first hit the $1 billion mark, marking the transformation of this sector soon.

Avalanche

Avalanche's TVL continuously increased and hit $8.7 billion this week. Sector Lending still accounts for the majority of TVL on Avalanche, followed by DEX. DEX is on the way to rapid growth from October 15th to regain its market share.

Fantom

After going through a period of robust growth to $10 billion TVL, Fantom stagnates at $8.4 billion, with more than 52% coming from sector Assets, 21.59% coming from DEX, and 26.33% coming from Lending. The level of speculation has decreased through TVL of assets, but the rate is still high.

Polygon

Polygon's TVL is still moving sideways in the range of $4 billion - $4.6 billion from September 25th. TVL comes mainly from Lending and DEX.

Terra

This week, Terra's TVL hit the $10 billion mark again but quickly decreased slightly to $9.6 billion due to the influence of the whole market. Currently, Terra's TVL comes mainly from Anchor, Lido, Mirror, and Terraswap.

A Closer Look in DeFi

Decentralized Exchange

Liquidity by Protocol

Curve is still the DEX with the amplest liquidity at the moment, with $15.76 billion.

Sushi surpassed PancakeSwap and Uniswap v2 to become the 2nd most liquidity DEX, reaching $6 billion.

Weekly Trading Volume

Trading volume this week returned to the $32.8 billion mark. Uniswap continues to be the DEX generating the most trading volume with more than $11.7 billion (+14.93%), followed by PancakeSwap with $7.4 billion (+15.77%). SushiSwap, for three consecutive weeks, has a pretty good volume of around $2.94 billion. Trader Joe's trading volume reached $2.2 billion, and Raydium's figure was $1.8 billion.

Daily Active Users

PancakeSwap owns more than 600,000 daily active users, much higher than the average number of other DEXs.

Uniswap V2 is on the growth again with over 47,000 DAUs, followed by QuickSwap with over 23,000. Meanwhile, SushiSwap still has a relatively small DAU, only about 3,000 - 4,000.

Lending Landscape

MakerDAO and Aave continue to lead in terms of TVL volume. Specifically, MakerDAO's TVL is $16.4 billion, and Aave's figure is $15 billion. Compound is a bit lower at over $11.8 billion.

Abracadabra continues to grow steadily, reaching the $3 billion mark. It caused Abracadabra to surpass Venus to take 5th place in the Lending sector.

Outstanding Loans by Protocol

Compound, Aave, and MakerDAO have very close outstanding loans. Specifically, Compound owns $8.3 billion outstanding loans; this figure of Aave and MakerDAO is $8 billion and $7.92 billion, respectively. Notably, Abracadabra surpassed Venus to become the 4th largest lending protocol with outstanding loans.

Derivatives (Ethereum)

After hitting $8.2 billion/day, the trading volume of dYdX L2 decreased by more than 75%. Even so, when compared to the trading volume of Perpetual Protocol, this figure of dYdX is still 31 times higher.

Perpetual Protocol has increased its volume to $150 million per day. This is a positive signal for Perpetual Protocol when they are about to launch v2 on Arbitrum.

Non-Fungible Tokens

Opensea

Both Opensea's trading volume and DAU plummeted after peaking in August 2021. Currently, the DAU level has dropped to 10,000; and the trading volume is in the range of $38 million - $50 million per day.

Fundraising Spotlight

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