October 6, 2023
Web3
4
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Author:
0xScope

Is Bitcoin a future TVL leader?

This past week, the total TVL balance across all 201 Web3 ecosystems tracked by the 0xScope team grew by $2.08B (+3.15%) to the current balance of $66.04B. About 61% of all ecosystems have shown positive growth. In this edition of the Web3 Hot Trends report, we focus on some notable TVL gainers 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 across 201 ecosystems.

  • Bitcoin rides Lightning Network momentum to big TVL gains. The world's biggest crypto token is not usually in the TVL conversation, but its recent rapid growth in Lightning Network capacity has resulted in significant TVL gains for the platform. Between October 2 and 4, network capacity grew from 4,491.913 $BTC to 5,062.421 BTC, representing a 12.7% increase. This is one of the factors that played into Bitcoin's $34.3M TVL boost (+23.17%) this week. Will Bitcoin take advantage of this momentum to become a TVL leader in the future?
  • Solana benefits from the $SOL rally. Ethereum rival Solana had a good week in the markets, with a 14.7% growth for its $SOL native token over the past 7 days. The platform translated this momentum into a $50.7M gain in TVL (+8.49%), good for No. 4 in our rankings.
  • Manta TVL grows 16x thanks to ApertureSwap. One of the biggest TVL gainers this week is Manta, with a $4.4M growth in locked tokens, representing a rapid 1589.07% rise. The key contributor to this growth is the recent launch of ApertureSwap, the new concentrated liquidity DEX from Aperture Finance, on Manta Pacific L2.

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:

  • Spark adds $76.5M to TVL after recent milestone. Spark Protocol, a sub protocol of MakerDAO, grew its TVL by 19.53%, good for No. 2 in our rankings this week. The project, which allows users to deposit $DAI stablecoins and convert them to Savings DAI (sDAI) assets, recently disclosed that its total sDAI circulation went above $1B.
  • tBTC grows TVL by 67.40%. One of the biggest TVL gainers this week is tBTC, the decentralized bridge created by Threshold to bring $BTC to the Ethereum network. The project's addition of $24.1M in TVL this week indicates the potentially huge opportunity for BTC-pegged assets on Ethereum and cross-chain Bitcoin liquidity on DeFi platforms.
  • Three of Tron's DeFi platforms among top 5 TVL gainers. Tron has continued its TVL momentum, most recently with a $6.55B gain. This growth is mainly driven by the performance of JustLend, JustCryptos, and JustStables, which have become mainstays in our rankings in recent weeks.

Full List

Project User Growth

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

  • GMX tops list thanks to Arbitrum Odyssey boost. GMX, the Arbitrum-based DEX that was the first project featured on Arbitrum's recently-launched Odyssey community activity, led all projects in terms of user growth. The project's low address-to-user ratio, currently at 1.38, is also notable given that the project's user growth is mostly airdrop-driven.
  • PancakeSwap, other token swap projects show high address-to-user ratios. This week's third-biggest project in terms of user growth is PancakeSwap, with 57,392 new addresses but just 4,064 new users. Its high address-to-user ratio of 14.12 has been quite typical of token swap projects, with other similar apps like Shibaswap and zkSwap having ratios of 11.04 and 16.07, respectively.
  • MakerDAO registers strong user growth. MakerDAO does not usually gain a lot of users on a weekly basis, but this week is an exception, with the project's addition of 891 new users. MakerDAO is trending positively in the past few days, as its $MKR token hits $1,500 for the first time since May 2022. The project also recently approved plans to invest up to $6B in US government bonds.

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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