Weekly DeFi Rabbit Hole by zj.valz
Welcome to the weekly š° hole of liquidity movements & DeFi analysis, where we uncover key trends and insights into the top protocols and hidden gems.
š° Contents:
- Stablecoin flows
- Smart Money Movement
- Top L1/L2 Financials
- Top DAPP Financials
- Movement Analysis
- TLDR
1. Stablecoin flows:
Total Stablecoin MCAP = 122.53 bil, with 0.08% weekly change.
Top 10 Chain (In terms of Stables Mcap)
Top inflows:
- Linea
- Wanchain
- Kujira
- IoTeX
- Waves
Top outflows:
- Osmosis
- Loopring
- Bittorrent
- smartBCH
- Omni
2. Smart Money Movement:
Top Smart money inflows (including stablecoins):
- USDT
- Wrapped ETH
- HarryPotterObamaSonic10Inu
- Prime
- IceToken
Top Smart money outflows (including stablecoins):
- USDC
- Banana
- Dai
- Mog
- Pond Coin
Top Smart money inflows (excluding stablecoins):
- Wrapped ETH
- HarryPotterObamaSonic10Inu
- Prime
- IceToken
- Fluid
Top Smart money outflows (excluding stablecoins):
- Banana
- Mog
- Pond Coin
- Hild
- Cal
3. Top L1/L2 Financials:
Fees-Generated
- ETH
- Tron
- BTC
- BSC
- zkSync Era
Revenue
- ETH
- Tron
- zkSync Era
- Optimism
- Base
DAUs
- Tron
- BSC
- BTC
- Near
- ETH
Active Developers
- ETH
- Polkadot
- Cosmos
- BTC
- Solana
Code Commits
- ETH
- Polkadot
- Solana
- Cosmos
- BTC
4. Top DAPP Financials:
Fees-Generated
- Lido
- Friend.tech
- Uniswap
- MakerDAO
- Aave
Revenue
- Friend.tech
- MakerDAO
- Lido
- Maestro
- Metamask
P/F Ratio
Relative valuation of protocols (Lower the no. the ābetterā)
- Nether.Fi
- SpookySwap
- Mummy Finance
- Equilibre
- HMX
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
- Nether.Fi
- X2Y2
- Level Finance
- Buffer Finance
Holders Revenue - Cumulative revenue attributable to holders 24 Hours
- PancakeSwap
- Venus
- Radiant
- Curve
- Liquity
DAUs - Daily
- Pancakeswap
- Uniswap
- Stargate
- 0x
- Friend.tech
Trending Applications
- Project Galaxy
- Xen
- Gnosis
- Element Market
- Pomerium Ecosystem
Trending Categories
- Infrastructure (ARB)
- NFTs (BNB)
- Tokens (BNB)
- NFTs (ARB)
- Defi (Polygon)
Raises - Recent funding rounds
5. Movement Analysis:
Stablecoin flows:
- Total stablecoin market cap continues to remain relatively flat this week with a slight increase of 0.08%.
- Linea, Wanchain, and Kujira saw the most significant stablecoin inflows.
- Osmosis, Loopring, and Bittorrent saw the most significant stablecoin outflows.
Smart Money Movement:
- Smart Money has an aggregated portfolio allocation of 42% ETH/ETH Variant, 40% Alts, and 18% Stablecoin this week.
- HarryPotterObamaSonic10Inu, Prime, and IceToken saw the largest Smart Money inflow this week.
- Banana, Mog, and Pond saw the largest Smart Money inflow this week.
- Smart Money started selling positions in Banana as bot wars intensified with various bots offering lower fees and/or faster executions.
L1/L2 movement:
- zkSync Era continues its fee and revenue dominance over other L2s, but on-chain defi activity remains lackluster.
- Optimismās revenue overtook Base this week, falling slightly behind zkSync Era.
- Arbitrum appears to have risen from its slumber with a short-term incentive program in place to revitalize the chain and compete against other L2s.
DAPP movements:
- Friend.tech continues to dominate the fee and revenue leaderboard as key speculation and airdrop farmers flock en-mass during the September defi lull.
- MaestroBot continues to attract significant usage from on-chain traders allowing them to accrue significant fees and revenue despite not having a native token.
- Alpha drop byĀ @apes_prologue
- Raises that caught my eye this week include:
- Proof of PlayĀ - An on-chain game studio that managed to raise $33 million raise from a16z and other notable investors like Justin Kan and Balaji;
- BastionĀ - A web3 B2B infrastructure provider started by 2 former executives from a16z crypto division;
- Jiritsu Network - A pioneer in verifiable computing that has strong applications in the tokenization space, which was started by successful founders; and
- EssentialĀ - An Intent-based infrastructure & tooling protocol.
6. TLDR:
- Stocks and Crypto continue their downtrend as the Fed opts to maintain its restrictive monetary policy. However, on-chain stablecoins have remained relatively stable which could indicate many are still staying on the sidelines and waiting for the right opportunity to re-enter the market.
- The Bot sector is becoming increasingly crowded, with a new one emerging every few days, offering lower fees/ improved trade execution. Investing in this sector becoming challenging and less lucrative, remain vigilant and do not marry your bags.
- Investments are continuing to pour into projects led by successful founders with established track records. "Proof of Play" stands out as one of the most substantial fundraising efforts in the space, following the GameFi mania of 2021. The amount raised by prominent backers makes it a project worth paying attention to.
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
Thatās it Anon, hope you enjoyed the š°hole this week.