November 17, 2023
Web3
5
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0xScope

ETH powers Web3's $5B TVL boost, but rivals also shine

This past week, the total TVL balance across all 213 Web3 ecosystems tracked by the 0xScope team increased by $4.9B (+6.16%). The Web3 industry's TVL has continuously grown over the past four weeks, with a total increase of $19.2B. About 66% of all Web3 ecosystems have grown their TVLs this week. The recent bullish crypto market has boosted many of the biggest Web3 platforms and projects.

In this edition of the Web3 Hot Trends report, we discuss the latest trends and bright spots across Web3 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 leads TVL gainers as usual, but rivals grow bigger. The leading Web3 ecosystem unsurprisingly led all platforms with a $3.35B TVL gain (+6.01%), accounting for 68.2% of the industry's total TVL increase this week. However, many of Ethereum's biggest competitors have shown more robust TVL growth rates, and we will discuss three of those ecosystems below.

2. Solana bucks FTX-related sell-off, sees 35% TVL increase. Solana is the second-biggest TVL gainer this week, with $439.4M in additional stored funds, behind the strong performance of projects such as Marinade Finance and Jito. Even the unstaking of $160M worth of $SOL tokens by FTX-linked wallets was not enough to deter Solana's continued bull run, which resulted in a 26.3% increase in $SOL's value for the past week.

3. Avalanche rises thanks to J.P. Morgan tie-up, Benqi growth. Avalanche added $171.2M to its TVL (+22.93%), while its native $AVAX token went on a bull run, rising 77.7% this week to reach a 15-month high at $24. Catalysts for Avalanche's good week include the growth of Benqi's TVL, which we will discuss below, and recent reports about J.P. Morgan's use of an Avalanche subnet to tokenize its portfolios

4. THORChain grows 55% behind DEX milestone, token bull run. THORChain recently became the third-biggest DEX based on trading volume, while its native $RUNE token skyrocketed by 59% over the last week and 297.20% over the last 30 days. The high yields offered on $RUNE-associated DeFi products have resulted in a $58.5M boost to THORChain's TVLs, representing 54.68% growth this week.

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. Polygon bridge adds $534.9M to TVL thanks to Ordinals-like tokens. Polygon recently launched POLS, its version of the Bitcoin Ordinals NFT tokens. The minting craze for POLS resulted in the spike in Polygon's gas fees to $0.10, as well as the use of more than 102M $MATIC tokens ($86M) for gas.

2. Marinade Finance, Jito power Solana's TVL boost. Marinade Finance, the leading DeFi platform on Solana, added $187.1M (+45.83%) to its TVL this week, following its recent liquid staking contract upgrade. Meanwhile, Marinade's liquid staking product gained $120.7M (+44.14%). Fellow Solana project Jito, which essentially competes with Marinade's liquid staking service and has recently surpassed 6M $SOL in staking, grew its TVL by 49.16% (+$128.2M). Together, the three projects were mainly responsible for Solana's recent TVL growth spree.

3. Benqi leads Avalanche's TVL resurgence. Benqi, a staking and lending platform for Avalanche, has added $134.3M to its TVL (+61.89%), while its $AVAX staking product saw its total locked funds soar by 85.70% (+$79.5M).

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. DODO leads all projects in new user growth. DEX platform DODO was featured last week in Arbitrum's ongoing Odyssey community incentive program. After becoming the second-best Web3 project in terms of new users last week (+28,293), DODO continued its momentum and added 20,386 more new users. It remains to be seen if DODO can extend this robust user growth for at least a few weeks more, like what its fellow Arbitrum project Rhino did.

2. BattleFly gets Arbitrum Odyssey boost, adds 13,548 new users. Idle strategy game BattleFly is the latest beneficiary of Arbitrum Odyssey after seeing 98.74% user growth this week, while still maintaining a healthy 1.34 address-per-user ratio and a 51.11% active user share. The GameFi project surpassed other Web projects except DODO in terms of user growth this week.

3. Rhino sees slower but still-strong growth. Arbitrum-based token bridge Rhino has seen five straight weeks of user growth, and it has added 11,943 more users this week. Rhino had already increased its user base by about 100,000 over the past month, including 56,164 last week. Despite the slower growth this week, Rhino added enough new users to land on the No. 3 spot on this list.

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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