October 13, 2023

Few bright spots in red week for Web3 TVLs

This past week, the total TVL balance across all 198 Web3 ecosystems tracked by the 0xScope team plummeted by $4.83B (-7.11%), reversing the $2.08B in gains made last week and then some. About 84.34% of all ecosystems saw losses, led by the three biggest blockchains by total TVL.

In this edition of the Web3 Hot Trends report, we discuss the factors that led to this TVL downturn across Web3, as well as some bright spots across ecosystems and projects amid a bearish week.

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 is this week's biggest TVL loser. As the TVL market leader, Ethereum carries an enormous influence compared to its peers. Hence, this week's $3.89B TVL decrease for Ethereum (-8.08% from a week ago) accounted for 80% of all TVL losses. By comparison, its closest rivals BNB Chain and Tron only lost $248.2M (-7.11%) and $172.8M (-2.54%), respectively.

2. Gnosis leads all TVL gainers thanks to sDAI launch. Community-run Ethereum sidechain Gnosis recently announced support for MakerDAO's sDAI, allowing its holders to access high-yield DAI Savings Rates (DSRs) from Maker on the platform. The DeFi earning advantage from this launch allowed Gnosis to grow its TVL by 59.52%, adding $55.4M in the process.

3. Sui logs record TVL high after months-long slump. Layer 1 blockchain Sui, which launched in May and suffered TVL declines well into August after post-launch hype, has now bounced back and recorded a new all-time-high TVL of $48.8M this week, after never reaching past $40M in its entire run. The project's foundation recently announced a plan to reclaim 117M $SUI tokens to support the network's growth.

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. Amid Base slump, 2 projects bring double-digit TVL growth. Scale and Equalizer, two DeFi projects built on the Base blockchain, grew their TVLs by $7.5M (+51.01%) and $5.6M (+37.84%), respectively. They are bright spots in an otherwise down week for the Coinbase-backed blockchain, which lost $40.4M in TVL (-10.91%) as other blockchains recapture DeFi share in what appears to be "vampire attacks".

2. Ethereum DeFi mainstay Curve grows on other blockchains too. Curve, an established name in Ethereum DeFi, is also increasing its TVLs on other blockchains that it has expanded into. Curve has grown its TVL on Arbitrum by $2.7M (+7.92%), while its locked value on Base increased by $2.2M (+11.05%) this week.

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. Only 1.24% of Web3 users on top user-growth projects can be considered active. It means that on average, only 1 out of 100 Web3 users are actively using the Dapps, and that's just for those projects with top user growth. In some cases, it's even worse. For instance, in the case of the token swap project ShibaSwap on Ethereum, only 3,502 of its 1.9M users (as of this week) can be considered active, or about 2 out of 1,000.

2. The average Web3 user connects 5 addresses to each project. For DEX users, it's dozens. This week, the average address-to-user ratio for the Web3 projects in our rankings is 5.13. Take note that this varies greatly based on the type of Web3 project, as DEXes tend to have significantly higher address/user numbers. For instance, the average user of the Uniswap V2 DEX on Ethereum has used an astounding 36.80 addresses this week.

3. Bridges and DEXes dominate our user growth rankings. This persistent trend in many lists that we have done over the past few weeks is due to airdrop hunters' preference for using them to maximize crypto-related giveaways. This partly explains the numbers we shared in the trends above.

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