August 25, 2023
Web3
6
mins
Author:
0xScope

Web3 Hot Trends: From Ethereum’s slip to sei’s airdrop Surge: a rollercoaster week in Crypto

Web3 Hot Trends is 0xScope’s weekly recap highlighting the most notable recent developments and potential alpha opportunities in Web3. Powered by 0xScope’s analytical tools and research team.

Last week saw dynamic shifts in the crypto ecosystem, and here’s a deep dive into what went on.

Ecosystem TVL Growth

TVL is an essential indicator of how much capital is currently engaged in the decentralized finance space. Here are some key observations from the TVL growth data:

  1. Market Contraction: The recent market shake saw an overall decline in TVL across chains, with a reduction of $3.6B, marking a 4.97% decrease. Notably, Ethereum took a significant hit with a reduction of $3.07B in TVL, which accounts for a 5.76% decrease.
  2. Tron’s Rise: Tron led the TVL growth, primarily because of several chainswaps (e.g. Justlend). Central Exchanges (CEX) were transferring their stablecoins from Ethereum to Tron.
  3. Base’s Stability: Amidst the volatile market, Base demonstrated resilience and continued its growth trajectory thanks to projects such as Compound, Sushiswap, Stargate and Friend.tech.
  4. Sei’s Airdrop Effect: Sei experienced a colossal growth of 1919.46% in its TVL, significantly driven by the recent airdrop event. Sei’s airdrop was initially supposed to be open for claiming at Public Mainnet launch (on August 15th), but got delayed. Sei Labs mentioned that “airdrop rewards can be claimed after a preliminary warmup phase,” yet they did not specify an exact schedule.

full list

Project TVL Growth

Diving deeper into the projects’ TVL growth, a few projects have made considerable strides:

  1. Eigen Layer’s Monumental Growth: Eigen Layer, Ethereum restaking, saw TVL soaring by 200% following robust support for their 3.0 net, even with ETH deposit limits. Their success can be tracked in their recent Twitter update.
  2. Curve’s Ecosystem Leads: Curve and its affiliated projects, notably CRV-USD and convex finance, spearheaded the DeFi growth last week. This might be due to the community going back to their beloved Curve products after the recent Curve exploit.
  3. GMX V2’s Value Recognition: The DEX saw a 61% growth in TVL as the crypto community began recognizing its inherent value.
  4. Compound’s New Base: Compound recently launched on Base, drawing significant attention. Its main attraction is its feature that enables the use of cbETH (Coinbase’s staked ETH) to borrow USDC, as highlighted in this article.

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. Bungee’s Dominance on Arbitrum: The web3 bridge aggregator secured the top position in user growth.
  2. Swap & Bridge Dominance: Most of the top 30 projects fall under the Swap & Bridge categories. This suggests that these projects, serving as basic decentralized applications (dapps), are the primary targets for bots and airdrop farmers.
  3. Liquid Staking Demand: Projects like Lido and Rocket Pool exhibited growth, signifying that the interest in Liquid Staking remains robust.
  4. Sybil Attacks on Stargate: Stargate on the BNB chain experienced an average of 21.24 addresses per user. This indicates that users are employing multiple addresses to interact with Stargate, possibly due to the BNB chain’s low fees. This multi-address interaction hints at potential sybil attacks targeting Stargate, mainly by airdrop hunters.
  5. zkBridge’s Airdrop Expectations: zkBridge, with an 8.7 address/user rate, made it to the list once again. LayerZero’s association and its anticipated airdrops seem to be the driving forces behind this trend.

full list

The past week’s crypto trends showcased declines in Total Value Locked contrasted with Tron’s growth and strategic airdrops like Sei’s. Projects such as Eigen Layer and Curve demonstrated resilience and experienced growth despite market challenges. However, evident from instances like Stargate’s multi-address interactions, potential threats like sybil attacks cannot be ignored.

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