November 3, 2023
Web3
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0xScope

ETH DeFi leads $2.9B Web3 TVL rise

This past week, the total TVL balance across all 211 Web3 ecosystems tracked by the 0xScope team increased by $2.85B (+3.91%). The Web3 industry is building upon the $8.76B TVL boost it got last week, amid significant bull runs for Bitcoin, Ethereum, and several other tokens.

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. Ethereum rivals Solana, Near, Sui grow TVLs after token pumps. Ethereum continued its lead among top TVL growers for the second straight week, with $1.6B in additional locked value (+3.11%). However, Layer-1 platforms Solana, Near, and Sui are also delivering strong TVL growth in the shadow of their main competitor ETH.

This week, Solana ($SOL) added $255M (+30.30%) to its TVL, while Near Protocol ($NEAR) and Sui ($SUI) grew their TVLs by $23.5M (+30.42%) and $19.6M (+30%), respectively. These projects were boosted by their respective native tokens' bull runs: $SOL is up by 20.40% in one week, while $NEAR added 31.14% to its price. $SUI also showed price growth at several points this week, but its November 3 token unlock event resulted in significant selling pressure.

2. Notable ETH Layer-2 winners and losers. This week has been positive for three major Layer-2 platforms: Arbitrum, Avalanche, and Optimism grew their TVLs by $81.3M, $38.8M, and $26M, respectively, with growth rates similar to Ethereum's.

However, in a week when 157 out of 211 ecosystems showed TVL growth, other Ethereum Layer-2 platforms such as Base, Starknet, zkSync Era, and Polygon are among this week's biggest losers, with combined TVL losses of $11.3M. This is further testament to the rising competition between Layer-2 platforms.

Full List

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. Maker contributes about half of total project TVL growth numbers. This week, 46 Web3 projects added at least $1M to their TVLs, with 18 of them growing by $5M or more. But by a wide margin, Maker tops this list with $266.3M in additional TVL (+3.35%), accounting for 47% of the total TVL increase among the 46 projects with strong growth.

Maker's real-world assets (RWA) protocol has shown steady growth, rising from around $2.5B in TVL to just below $3.5B in the past three months, unlocking more value for the major DeFi player.

2. Ethereum DeFi projects dominate TVL gainers list. Aside from Maker, Ethereum-based protocols such as Instadapp, Unisway V3, Maple Finance, Lybra Finance, and Ondo Finance combined for $135.7M in additional TVL this week, accounting for 24% of the total. In total, more than 70% of TVL growth among projects is concentrated on these five Ethereum projects, plus Maker.

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. Rhino on Arbitrum adds 40,000+ users in three weeks. Rhino, an Arbitrum-based token bridge that also supports Scroll, has scored major user growth week after week. After adding 2,116 new users two weeks ago and 5,736 more last week, Rhino recorded 32,726 additional new users this week (+45.76%). This is a major feat, especially considering that the top projects in this list typically add just a few thousand users at a time. What's more interesting about this growth for Rhino is that the project was able to record a 34.61% active user share, when projects rarely cross 20%, all while maintaining a low address-to-user ratio at 1.58.

2. 1inch gets Arbitrum Odyssey rub. This week's major beneficiary of Arbitrum's ongoing Oddysey airdrop campaign is DeFi aggregator 1inch, which gained 12,802 new users thanks to the community activity. 1inch also continued the trend of healthy address-to-user ratios for Odyssey-supported projects, with its 1.63 ratio in line with metrics obtained by past Odyssey projects like TofuNFT (1.74) and Abroad (1.84).

3. 12 Arbitrum projects make it to the top 20. This is a good week for Arbitrum projects, with 12 projects gaining at least 880 new users. The healthy user growth numbers for Arbitrum projects contributed to the Layer-2 platform's $81.3M TVL increase this week.

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.

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