Friday, December 2, 2022

DeFi platforms see profits amid FTX collapse and CEX exodus


Every week after the fallout from the FTX and Alameda chaos, some on-chain knowledge factors are fascinating to watch. Though file quantities of Bitcoin (BTC) and Ether (ETH) are leaving the exchanges, not all decentralized applications (DApps) and protocols have proven development, primarily attributable to reliance on FTX and Alameda. 

DeFi earnings spotlight constructive income for some protocols

In response to Token Terminal’s earnings leaderboard, within the final seven days, three protocols had income above $1 million. Ethereum led the on-chain earnings with over $8.5 million complete, an indication of strong post-Merge fundamentals.

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OpenSea was a distant second place to Ethereum, incomes $1.5 million, whereas 9 protocols and DeFi platforms earned greater than $100,000.

Earnings leaderboard. Supply: Token Terminal

Decentralized perpetual exchanges see elevated buying and selling quantity

Mixed with the migration away from centralized exchanges (CEXs), the volatile crypto market has customers buying and selling in file numbers.

In response to knowledge from Token Terminal, the day by day buying and selling quantity of perpetual exchanges reached $5 billion, which is the best day by day buying and selling quantity for the reason that LUNA and TerraUSD (UST) meltdown in May 2022.

Perpetual alternate quantity. Supply: Token Terminal

Whereas buying and selling quantity elevated, the entire worth locked in DeFi lags

Solely seven protocols noticed a internet enhance of their total value locked (TVL) over a seven-day interval. Beneficial properties Community, a perpetual alternate on Polygon, noticed the biggest seven-day enhance at 17.3%

TVL sorted descending from 7-day. Supply: Token Terminal

One interchain operability protocol, Ren, witnessed a TVL drop of fifty% within the final week. As reported by Cointelegraph, Ren partnered closely with Alameda, receiving quarterly funding and retaining its treasury immediately on FTX. The protocol itself benefited from Alameda’s locked liquidity in an try to enhance interoperability.

Ren TVL. Supply: Token Terminal

Information additionally reveals that blockchain revenues are rising amid a continuing price of day by day lively customers. Main blockchains noticed a rise of over 300% in day by day income when in comparison with earlier weeks.

On the similar time, day by day lively customers remained regular at 1 million. The dichotomy between these knowledge factors means that transactions are taking place at a extra frequent tempo amongst present customers.

Blockchain income and day by day lively customers. Supply: Token Terminal

Associated: FTX collapse followed by an uptick in stablecoin inflows and DEX activity

Blockchain revenues don’t essentially equal earnings

Whereas blockchains noticed a rise in income,s which is probably going primarily attributable to token emissions, solely Ethereum noticed constructive earnings. Proof-of-stake (PoS) blockchains like Polygon, BNB Sensible Chain and Optimism all recorded damaging earnings. When PoS blockchains have damaging earnings, holders of the tokens are hit with inflationary losses.

Blockchain earnings. Supply: Token Terminal

On-chain knowledge continues to exhibit robust factors with elevated exercise on decentralized perpetual buying and selling platforms and constructive income for DeFi protocols. Though CEX outflows had been historic, day by day lively DeFi customers didn’t enhance, however the truth that they remained constant is notable. The identical knowledge additionally highlighted lagging blockchain earnings (apart from Ethereum) and a lower in TVL.