Weekly DeFi Rabbit Hole by zj.valz
Welcome to the weekly 🐰 hole (27 August 23) of liquidity movements & DeFi analysis, where we uncover key trends and insights into the top protocols and hidden gems.
🐰 Contents:
- Stablecoin flows
- Smart Money Movement
- Top L1/L2 Financials
- Top DAPP Financials
- Movement Analysis
- TLDR
1. Stablecoin flows:
Total Stablecoin MCAP = 122.46 bil, with 1.0% weekly change.
Top 10 Chain (In terms of Stables Mcap)
Top inflows:
- Conflux
- Starknet
- Base
- SXnetowrk
- Ethereum
Top outflows:
- Algorand
- KCC
- Wanchain
- Boba
- Evmos
2. Smart Money Movement:
Top Smart money inflows (including stablecoins):
- Wrapped ETH
- OLAS
- USDC
- OHM
- Wrapped BTC
Top Smart money outflows (including stablecoins):
- Dai
- Rollbit
- Unibot
- Curve USD stablecoin
- Pepe
Top Smart money inflows (excluding stablecoins):
- Wrapped ETH
- OLAS
- OHM
- Wrapped BTC
- Hilo
Top Smart money outflows (excluding stablecoins):
- Rollbit
- Unibot
- Pepe
- Linq
- HarryPotterObamaSonic10Inu
3. Top L1/L2 Financials:
Fees-Generated
- ETH
- Tron
- BTC
- BSC
- zkSync Era
Revenue
- ETH
- Tron
- Base
- zkSync Era
- Arbitrum
DAUs
- Tron
- BSC
- Bitcoin
- Polygon
- Ethereum
Active Developers
- ETH
- Polkadot
- Cosmos
- Solana
- BTC
Code Commits
- ETH
- Polkadot
- Cosmos
- Solana
- BTC
4. Top DAPP Financials:
Fees-Generated
- Lido
- Uniswap
- Friend.tech
- OpenSea
- PancakeSwap
Revenue
- Friend.tech
- MakerDAO
- Lido
- Maestro
- Convex Finance
P/F Ratio
Relative valuation of protocols (Lower the no. the “better”)
- Equilibre
- Level Finance
- Solarbeam
- Mummy Finance
- GND Protocol
P/S ratio
FDV Mcap/Annualized Revenue (Take this metric with a pinch of salt as revenue figs used could be annualized and not actual revenues earned)
- Equilibre
- Level Finance
- QiDao
- X2Y2
- Stargate
Holders Revenue - Cumulative revenue attributable to holders 24 Hours
- PancakeSwap
- Synthetix
- Radiant
- Curve
- Venus
DAUs - Daily
- Pancakeswap
- Uniswap
- Stargate
- Metamask
- 0x
Trending Applications
- Lifeform
- Trust Wallet
- First Standard
- Project Galaxy
- Gnosis
Trending Categories
- Infrastructure (Optimism)
- Layer 2 (Optimism)
- Social (ETH)
- Layer 2 (ETH)
- Bridge (Optimism)
Raises - Recent funding rounds
- BitOasis
- Pendle
- LuminaDEX
- Maple Finance
- Delphinus Labs
5. Movement Analysis:
Stablecoin flows:
- Total stablecoin market cap remains relatively flat this week with a 1.0% increase.
- Conflux, Starknet and Base saw the most significant stablecoin inflows.
- Algorand, KCC, and Wanchain saw the most significant stablecoin outflows.
- Starknet and Base are strong contenders in the L2 race, with the latter reaping the benefits of the Friend.tech mania.
Smart Money Movement:
- Smart Money remains relatively risk-on with Alt inflows outpacing outflows.
- Smart Money are securing their profits in wrapped ETH instead of stablecoins, underscoring their confidence in holding ETH even at its current price of ~$1650.
- Olas, OHM, and Hilo are experiencing significant Smart Money inflows.
- Rollbit, Unibot and Pepe see continued divestment, indicating the rotation of narrative away from casino, bot and shitcoin meta into quality protocols.
L1/L2 movement:
- Base L2 fees and revenue continue to outpace other existing L2s, capturing the majority of crypto’s attention with friend.tech paving the way.
- zkSync Era is reaping significant fees and revenue this week with airdrop farmers coming back to qualify for airdrops.
- Solana is showing signs of life as an Alt L1, supported by a notable 6.2% surge in code commits this month.
DAPP movements:
- Friend.tech continues to crush revenue figures, outpacing giants like MakerDAO and Lido. This achievement comes in the wake of a recent update that enables users to send photos to their key holders.
- Bot fees are seeing a significant decline, following the shift from the bot narrative to the Socialfi narrative. Nevertheless, the Maestro bot stands as an exception, generating substantial fees and revenue, without the need for a token.
- Perpetual protocols are currently experiencing a lull attributed to the diminished market volatility this week, coinciding with BTC and ETH stabilizing at ~$26,000 and ~$1650, respectively.
- Alpha drop by @apes_prologue
- Trending narrative this week includes:
- Optimism infrastructure stack following the success of Base;
- SocialFi following the popularity of Friend.tech.
- Existing DeFi protocols like Pendle and Maple are seeing increasing VC attention and raise. This trend potentially signifies a rising interest in bridging the gap between Tradfi and Crypto.
6. TLDR:
- Slow week this week as BTC and ETH continue to consolidate at their current price levels.
- With Friend.tech paving the Socialfi narrative, I am focused on finding the picks and shovels of this new gold rush. Some notable mentions include SharesFinance, Qrollii and Shares_Bot.
P.s. I may have positions in the projects discussed in this article. Please note that this article is not intended as financial advice, and I encourage readers to conduct their own due diligence and ape responsibly.
Conclusion
That’s it Anon, hope you enjoyed the 🐰hole this week.