October 27, 2023
Web3
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0xScope

Bullish crypto week results in $8.8B TVL boost

This past week, the total TVL balance across all 204 Web3 ecosystems tracked by the 0xScope team increased by a whopping $8.757B, representing a strong growth rate of 13.67%. Bitcoin's sudden price elevation this week from below $30,000 to just below $35,000 has triggered significant TVL growth in the Web3 industry,

In this edition of the Web3 Hot Trends report, we discuss the wide-ranging impact of this week's crypto bull run, 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. Crypto price surge leads to a massive growth of on-chain TVLs. Aside from Bitcoin's $5,000 price jump this week, $ETH also saw its value rise from around $1,600 to start the week to as much as $1,850. As a result, 181 of the 204 Web3 ecosystems we track in this report have shown TVL increases, including Ethereum's $6.68B TVL jump (+14.9%). Of these ecosystems, 26 have added more than $10M to their TVLs, while 117 have shown TVL growth of 10% or more in a single week.

2. Solana, Aptos parlay token gains into strong TVL jumps. Amid this bullish week in crypto, other Web3 ecosystems such as Solana and Aptos have shown more robust growth in their TVLs compared to their major rivals. The key factor in the 29.29% TVL boost for Solana and an even stronger 39.47% jump for Aptos is the increase in the prices of their tokens: +20.77% for $SOL and +24.60% for $APT in just one week, compared to +10.88% for $ETH.

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Project TVL Growth

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

1. 121 projects increased their TVLs by at least $10M. The recent crypto bull run brought renewed interest in Web3 projects across the board. According to 0xScope data, at least 121 Web3 projects managed to add $10M or more to their TVLs. 108 of these projects increased their TVLs by 10% or more this week.

2. Much of this week's TVL growth is on DeFi giants. While TVL growth seems near-universal this week, a handful of the Web3 industry's biggest gains have benefited the most from the bull run. This week, the leading TVL gainer is $ETH liquid staking leader Lido with a $2.667B boost, or 30.46% of the total TVL growth across the Web3 industry. There are more familiar names at the top of this week's TVL growth rankings, including Aave (+$918.66M) and MakerDAO (+$865.55M). The biggest names in DeFi likely boosted their TVL numbers thanks to the sharp $ETH price hike this week.

3. $BTC boost elevates WBTC to $1.3B TVL boost. Wrapped Bitcoin followed up its 7.11% TVL increase (+$310.5M) last week with an even stronger 29.31% growth. With the growing anticipation over the possible approval of a Bitcoin spot ETF in the U.S., DeFi traders have definitely leveraged Bitcoin's momentum by buying more of the Bitcoin-pegged token and using them on DeFi platforms, therefore resulting in the massive TVL growth across dozens of projects this week.

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Project User Growth

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

1. Arbitrum apps beat Ethereum, BNB Smart Chain counterparts in user growth. Six of the top 10 apps with the highest user growth this week are on Arbitrum, including this week's top app Rhino.fi, which added 5,736 new users. This week, 18 of Arbitrum's projects added 500 or more new users, compared to Ethereum with 12 and BNB Smart Chain with 7.

2. Arbitrum Odyssey boosts TofuNFT, Aboard user numbers. The ongoing community campaign by Arbitrum recently featured NFT marketplace TofuNFT and perpetual DEX Aboard. TofuNFT grew its user base by 4,995, while Aboard added 4,578 new users. The two projects have shown healthy growth, combined with low address/user ratios (1.74 for TofuNFT, 1.84 for Aboard). It seems that Arbitrum learned its lessons from the initial bot-plagued run of the Odyssey campaign last year.

3. Growth trends for derivative DEXes and new projects. The recent bull market has also resulted in observable user growth trends for derivative DEX projects such as Rhino.fi, ApolloX, GTrade, and Gains Network, with the latter three gaining at least 800 new users. Recently launched projects like Kinza, a lending protocol on BNB Smart Chain, have also seen significant growth in new users.

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Notes:

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.

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