Weekly DeFi Rabbit Hole by zj.valz
Welcome to the weekly 🐰 hole 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 = 123.88 bil, with 0.74% weekly change.
Top 10 Chain (In terms of Stables Mcap)
Top inflows:
- Osmosis
- Kujira
- Conflux
- Secret
- Terra Classic
Top outflows:
- Dogechain
- Wanchain
- Aptos
- Gnosis
- DefiChain
2. Smart Money Movement:
Top Smart money inflows (including stablecoins):
- USDT
- HarryPotterObamaSonic10Inu
- DAI (Arb)
- Wrapped ETH
- MMX
Top Smart money outflows (including stablecoins):
- Grox
- Wrapped ETH (Arb)
- USDC
- UFO
- SPX
Top Smart money inflows (excluding stablecoins):
- HarryPotterObamaSonic10Inu
- Wrapped ETH
- MMX
- 0X
- Joe
Top Smart money outflows (excluding stablecoins):
- Grox
- WETH (Arb)
- UFO
- SPX
- BIBI
3. Top L1/L2 Financials:
Fees-Generated
- ETH
- BTC
- Tron
- BSC
- Arbitrum
Revenue
- ETH
- Tron
- Polygon
- Arbitrum
- Solana
DAUs
- Tron
- BSC
- Near
- BTC
- ETH
Active Developers
- ETH
- Polkadot
- Cosmos
- BTC
- Solana
Code Commits
- ETH
- Polkadot
- Cosmos
- Solana
- BTC
4. Top DAPP Financials:
Fees-Generated
- Uniswap
- Lido
- GMX
- PancakeSwap
- MakerDao
Revenue
- MakerDAO
- GMX
- Lido
- MetaMask
- Synthetix
P/F Ratio
Relative valuation of protocols (Lower the no. the “better”)
- Nether.Fi
- Level Finance
- HMX
- ApeX Protocol
- Mummy Finance
Holders Revenue - Cumulative revenue attributable to holders 24 Hours
- Synthetix
- Curve
- Velodrome
- PancakeSwap
- GMX
DAUs - Daily
- Pancakeswap
- Uniswap
- Osmosis
- MetaMask
- 0x
Trending Applications
- Metamask
- Synthetix
- Gnosis
- Seventh Age
- Humza
Trending Categories
- Infrastructure (OP)
- NFTs (Polygon)
- NFT apps (OP)
- Cefi (ETH)
- Defi (Arb)
Raises - Recent funding rounds
5. Movement Analysis:
Stablecoin flows:
- Total stablecoin market cap is finally seeing a decent uptick, increasing by 0.75% this week as crypto sentiments improve.
- Osmosis, Kujira, and Conflux saw the most significant stablecoin inflows.
- Dogechain, Wanchain, and Aptos saw the most significant stablecoin outflows.
- There might be an error in Defilama’s data showing >1000% inflow for Mantle which has been excluded in this week’s analysis.
Smart Money Movement:
- Smart Money has an aggregated portfolio allocation of 33% ETH/ETH Variant, 53% Alts, and 12% Stablecoin this week.
- HarryPotterObamaSonic10Inu, MMX, and 0X saw the largest Smart Money inflow.
- Grok, UFO, and SPX saw the largest Smart Money outflow.
- Smart Money’s portfolio allocation is increasingly risk-on with more exposure to Alts rather than ETH/Stables, reflecting the improvement in crypto sentiments.
L1/L2 movement:
- BTC and ETH continue to show strength this week, with BTC and ETH hitting 37K and 2K respectively following news of Blackrock Spot Ether ETF.
- Solana continues to outperform many alt L1s this week.
- Arbitrum maintains its dominance as the preferred L2, overtaking the likes of zkSync and OP in terms of fees and revenue generated.
- L2 activity is heating up with applications and categories across Arbitrum, OP, and Polygon seeing strong active addresses.
DAPP movements:
- GMX sees a remarkable week of fee and revenue generation as trading volatility picks up this week, which is a strong indication of the improving on-chain sentiments.
- Arbitrum STIP rewards will be kicking in over the next few months and native projects such as GMX, Grail, Magic, WINR, Pendle and RDNT might benefit from these incentives.
- Alpha drop by @apes_prologue
- Raises that caught my eye this week include:
- Ingonyama - A semiconductor firm creating programmable parallel computing processor similar to a GPU but designed for accelerating advanced cryptography and specifically zero-knowledge proofs and fully homomorphic encryption;
- Ritual - A startup with the aim of providing AI-powered infrastructure to execute complex logic currently beyond smart contracts; and
- Definitive - A protocol providing institutional grade DeFi yield and execution platform, raising $4.1m from BlockTower, Nascent, Coinbase Ventures, and many others.
6. TLDR:
- November started strong with green candles across the entire crypto ecosystem however some projects are getting more bids compared to others such as SOL, INJ, TAO, and Kujira.
- Perp protocols performed really well this week with the increased volatility and I believe GMX stands to benefit the most from current market sentiments coupled with ARB incentive programme.
- Expecting shitcoin season to reignite once BTC and ETH crabs sideways, protocols that provide the tools for on-chain degens could perform really well during this period.
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.