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 = 122.45 bil, with 0.04% weekly change.
Top 10 Chain (In terms of Stables Mcap)
Top inflows:
- Linea
- Wanchain
- Waves
- Osmosis
- SmartBCH
Top outflows:
- Aptos
- Hedera
- DefiChain
- Conflux
- Base
2. Smart Money Movement:
Top Smart money inflows (including stablecoins):
- wstETH
- USDT
- sfrxETH
- Banana
- USDC
Top Smart money outflows (including stablecoins):
- Wrapped ETH
- DAI
- Rollbit
- HarryPotterObamaSonic10Inu
- Unibot
Top Smart money inflows (excluding stablecoins):
- wstETH
- sfrxETH
- Banana
- Banana
- Wrapped TON Coin
Top Smart money outflows (excluding stablecoins):
- Wrapped ETH
- Rollbit
- HarryPotterObamaSonic10Inu
- Unibot
- FINE
3. Top L1/L2 Financials:
Fees-Generated
- ETH
- Tron
- BTC
- BSC
- zkSync Era
Revenue
- ETH
- Tron
- Base
- zkSync Era
- Optimism
DAUs
- Tron
- BSC
- BTC
- Near
- Polygon
Active Developers
- ETH
- Polkadot
- Cosmos
- Solana
- BTC
Code Commits
- ETH
- Polkadot
- Manta Network
- Solana
- Cosmos
4. Top DAPP Financials:
Fees-Generated
- Lido
- Friend.tech
- Uniswap
- OpenSea
- PancakeSwap
Revenue
- Friend.tech
- MakerDAO
- OpenSea
- Lido
- Maestro
P/F Ratio
Relative valuation of protocols (Lower the no. the “better”)
- SpookySwap
- Mummy Finance
- Equilibre
- Level Finance
- Kwenta
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
- X2Y2
- Buffer Finance
- SpookySwap
Holders Revenue - Cumulative revenue attributable to holders 24 Hours
- PancakeSwap
- Venus
- BaseSwap
- Radiant
- Houdini Swap
DAUs - Daily
- Pancakeswap
- Uniswap
- Stargate
- 0x
- Metamask
Trending Applications
- Floki
- Thirdweb
- Guildxyz
- Gnosis
- Gnosis
Trending Categories
- Layer 2 (OP)
- Social (Polygon)
- Infrastructure (ETH)
- Tokens (OP)
- Bridge (ETH)
Raises - Recent funding rounds
- Topic.Market
- Only Dust
- Fipto
- Layer N
- Portals
5. Movement Analysis:
Stablecoin flows:
- Total stablecoin market cap continues to remain relatively flat this week with a slight increase of 0.04%.
- Linea, Wanchain, and Waves saw the most significant stablecoin inflows.
- Aptos, Hedera, and DefiChain saw the most significant stablecoin outflows.
- Aptos's outflow increased this week, due to limited liquidity in the crypto ecosystem which is primarily flowing back to ETH and L2s.
Smart Money Movement:
- Smart Money has an aggregated portfolio allocation of 24% ETH/ETH Variant, 57% Alts, and 19% Stablecoin this week. ETH/ETH variant exposure decreased this week in favor of more alts exposure.
- Banana V1 and subsequently Banana V2 captured the largest Smart Money inflow this week.
- Rollbit, HarryPotterObamaSonic10Inu, and Unibot saw the largest Smart Money outflow this week.
- BananaGunBot's launch generated significant hype with in the depths of the September bear, attracting significant attention and capital from Smart Money. On the other hand, Unibot's price continues to dwindle as other bots eat up its market share.
L1/L2 movement:
- No notable movements in L1/L2 this week as users continue to farm for airdrops in zkSync Era and interact with Base.
- L2s continue to dominate Alt-L1s in terms of fees and revenue generated.
- Near Protocol’s sharp increase in DAUs is mainly driven by integrations with Kaikai - A Digital Shopping Platform, and Aurora. The sharp increase in DAUs has not yet translated into a positive price action.
DAPP movements:
- Friend.tech secured the 2nd spot in terms of fees generated and the top spot in revenue generated, outperforming most DAPPs this week.
- This success can be primarily attributed to users seeking to maximize points in the app and secure a decent airdrop bag, more details can be found in this thread by yh.eth.
- Alpha drop by @apes_prologue
- Raises that caught my eye this week include:
- Layer N - A L2 designed for and to scale Defi, backed by Peter Thiel’s Founders Fund and Kraken Ventures;
- Movement Labs - A Network of Modular Move-Based Blockchains;
- Flashwire - A Crypto-friendly digital bank; and
- Mocaverse - A membership NFT collection for access to Animoca Brands portfolio companies, with a huge $20 million raise.
6. TLDR:
- Friend.tech continues to attract significant liquidity from the crypto ecosystem as users implement various strategies to farm points and secure a bigger share of the upcoming airdrop.
- Despite the current bear market, the quality of fundraising is on the rise, with a strong emphasis on bridging Web 2.0 to Web 3.0 via categories like identity attestation, crypto banking, and cross-border payments.
- September continues to be a difficult month to trade in but with further clarity on FTX’s asset liquidation process, we may start to see some light at the end of the tunnel as Galaxy Digital is not expected to execute liquidations aggressively.
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.