September 22, 2023
Web3
4
mins
Author:
0xScope

DeFi drives ETH's $2.5B TVL boost

This past week, Web3 TVLs received a major boost from the $2.46B added across the Ethereum ecosystem amid heightened DeFi activity.

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 across 199 ecosystems, about 79% of which saw TVL growth:

  • Ethereum's DeFi-fueled comeback. In a largely bullish week for Web3 TVLs, Ethereum led all gainers with a 5.25% growth at $2.46B, on the strength of TVL growth across several established ETH-based DeFi brands such as Aave and Convex Finance.
  • Solana benefits from high-performing projects. The Ethereum-alternative platform also recorded significant TVL gains this week, boosted by multiple Solana-based projects that entered our list of the top 50 TVL-gaining projects this week. We'll discuss more about these ETH and Solana projects in the next section.
  • Cosmos chains Kava, Stride, Kujira rise. The three Cosmos-affiliated blockchains entered the top 20 list of TVL gainers this week. Kava, Stride, and Kujira brought in $20.5M (+7.54%), $11.3M (+41.15%), and $10.6M (62.06%) of additional TVL this week, respectively. Cosmos recently unveiled its 2024 roadmap for the Inter-Blockchain Communication Protocol, possibly boosing further interest in Cosmos-related platforms.
  • Base stagnant amid bullish TVL week. Lost in the shuffle of all the TVL gains across dozens of blockchains is Base, which added just $140,000 at 0.04% growth, following a $27M loss last week. It is likely that Base is entering a bottleneck period: a time of low activity following the growth period it saw during its launch month in August.

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:

  • Three Aave projects take in $127.6M in TVL. The leading project in this week's list is ETH-based Aave V3, with TVL growth of $62.9M (+3.5%). Two other Aave-related projects, Morpho Aave V3 and the original Aave, took in $33.4M and $26.2M in additional TVL, respectively, good for top 10 placements in the rankings. Aave's prominence in the rankings is likely due to a major migration of the TVLs from Aave's first two versions into the latest V3 platform. Meanwhile, Morph Aave is built on top of Aave, therefore it reflects the overall growth of Aave.
  • Ondo Finance benefits from RWA rise. Ondo Finance, a DeFi protocol that provides investors with liquidity options for real-world assets (RWAs) like U.S. Treasuries, the U.S. Dollar market, and short-term bonds, gained $33.4M in TVL, good for sixth place in this week's rankings. RWA-focused projects are experiencing rapid increases in TVLs, according to Defi Llama.
  • Solana projects grow their TVLs. Solana's resurgence is the result of a group effort by several Solana-based projects that managed to increase their TVLs this week, including Jito (+$7.4M), Lido (+$3.3M), Marinade Finance (+$3.2M), Portal (+$2.8M), Dual Finance (+$2.6M), Solend (+$1.8M), and Raydium (+$1.7M).

Full List

Project User Growth

Project user growth can offer insights into the adaptability and popularity of specific projects. Here’s what stood out from the usual airdrio-fueled dominance of DEX/bridge projects in this list:

  • Banana Gun address growth masks real user increase. The fast-rising Telegram trading bot, which we covered in our previous article about the TON Space wallet's launch on Telegram, has shown robust growth with 68% active user share and 23% user growth. However, 0xScope data shows that Banana Gun has a 11.22 address-to-user ratio. This understandable given the nature of trading bot activity, but it signifies that there's more than meets the eye regarding the project's growth.
  • Tinytap shows abnormal adress/user rate. The BNB Chain-based Web3 educational game project added 137,603 new addresses this week, but only 73 new users based on our data. This would put Tinytap's address-to-user ratio at a staggering 1884.97. It's puzzling why the app's users would need a thousand-plus addresses each to access the game, unless something else is going on behind the scenes.
  • SecondLive shows stable growth masked by address boost. The Web3 metaverse app added 25,129 new addresses this week across 2,059 users, giving it an address-to-user ratio of 12.20. While that ratio is pretty high, SecondLive has shown stable user growth with a respectable active user share of 15%.

Full List

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.

Visit 0xScope

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