October 20, 2023

Bitcoin surge, DeFi growth drive $1.2B TVL increase

This past week, the total TVL balance across all 202 Web3 ecosystems tracked by the 0xScope team increased by $1.2B (+1.90%), reversing some of the $4.83B in losses seen last week. There is a near-equal split between Web3 platforms that have gained and lost TVLs, but with the top 3 blockchains based on TVL size (Ethereum, Tron, BNB Smart Chain) all seeing higher inflows, led by ETH's $883.8M, the industry in general is at a more favorable stance this week.

In this edition of the Web3 Hot Trends report, we discuss the factors that led to this TVL increase in many areas of Web3, as well as some bright spots across ecosystems and projects.

Ecosystem TVL Growth

TVL is an essential indicator of how much capital is currently engaged in the decentralized finance (DeFi) space. Here are some key observations from TVL growth data we tracked this week.

1. Solana posts double-digit TVL growth. While Ethereum is this week's top TVL gainer among Web3 ecosystems, its blockchain rival Solana is also showing good momentum, with an 11.5% TVL increase from $67.9M growth, good for No. 3 in our rankings. $SOL recently rose to almost $27, its highest point since July, while Solana-based sci-fi game SAGE Labs reportedly saw more transactions than the entire Polygon network (2.29M transactions for SAGE vs. 256,000 for Polygon). Furthermore, CoinShares recently said that $SOL is the top altcoin (except for $BTC and $ETH) in terms of institutional investment this year, raking in $59M so far this year.

2. Despite recent outage, Aptos sees 49% TVL increase. The Aptos blockchain added $23.5M to its TVL this week, the fifth-highest among all ecosystems, despite a recent 5-hour transaction outage that almost coincided with the first anniversary of its mainnet launch.

3. Scroll TVL expands 26.6x amid mainnet launch. Zero-knowledge EVM (zxEVM) platform Scroll announced the launch of its mainnet, driving a $5.3M increase (+2656.34%) to its TVL in just three days. Scroll's mainnet network has actually been live since October 8, but the team decided to withhold this launch until recently.

4. Mantle adds $15.1M to its TVL. The Layer-2 Ethereum platform grew its TVL this week by 41.68%, good for 10th place in our rankings. There were no recent major developments on this blockchain, aside from the launch of minting for its Citizens of Mantle NFTs.

5. Fantom hack leads to $8.2M TVL loss. One of the biggest TVL losers this week is Fantom, amid the recent hack on the wallets of the platform's foundation. During this attack, the foundation's wallets lost $470,000 in $FTM tokens and another $187,000 in $ETH. Perhaps due to security concerns, Fantom users took out millions from the network's TVL, resulting in a 13.74% loss.

6. Mixin tops all TVL losers with $17.9M decrease. Mixin is still reeling one month after a $200M hack on its network, seeing an 11.16% drop in its TVL this week.

Full List

Project TVL Growth

Diving deeper into the projects’ TVL growth, the 0xScope team spotted positive trends from a handful of projects that stood out this week:

1. WBTC sees $310.5M TVL upswing thanks to Bitcoin surge. Wrapped Bitcoin experienced a 7.11% TVL increase this week, on the heels of recent bullish developments in Bitcoin, including a now-deleted and disproved breaking news tweet about the U.S. SEC's alleged approval of a new Bitcoin spot ETF, as well as some actual progress on institutional investors' bids to get regulatory approvals on their BTC ETFs. This significant TVL increase indicates a growing interest in the use of Bitcoin on the Ethereum blockchain, which also fueled TVL growth on the latter.

2. Multiple NFT lending projects have skyrocketing TVLs. Among the projects being tracked for this report, NFT lending protocols have seen astounding increases in their TVLs, most notably Arcade.xyz (745,912x), NFTfi (4459x), and Blur Lending (2974x) These increases primarily happened after the mysterious, sharp drops in TVLs for these platforms on October 13

3. Jito, Range Protocol respectively fuel Solana, Mantle TVL jumps. The bullish TVL trends on both Solana and Mantle can be attributed in part to the $15.6M increase (+28.64) in the TVL of Solana liquid staking pool Jito and the 296.93% spike in the TVL Mantle-based non-custodial asset service Range Protocol.

Full List

Project User Growth

Project user growth can offer insights into the adaptability and popularity of specific projects. Here’s what stood out:

1. QuestN gains new users after Galxe hack. Web3 quest platform QuestN saw the second-biggest gain in new users this week (+4,047), trailing only PancakeSwap 3 (+4,153). The project likely benefited from the recent front-end hack on Galxe, prompting many airdrop-using projects and bounty hunters to explore other alternatives. Another positive development for QuestN is a good active user share, currently at 14.71%, despite a pretty high address/user ratio of 4.06.

2. Rhino.fi shows strong user growth after launching on Scroll. Token bridge platform Rhino.fi debuted this week on the newly launched Scroll mainnet, likely contributing to its sharp increase in new users (+2,116).

Full List


Users, as defined by 0xScope’s tools, pertain to real users behind addresses, calculated by 0xScope’s proprietary entity and bot recognition algorithm.

TVL stands for total value locked in a project.

Visit 0xScope

0xScope | Scopescan | Link3 | X | Telegram | Youtube | Discord