The State of DeFi

On-chain highlights to help you navigate the current situation and make smarter investment decisions.

Hey Investor 👋🏻

welcome to a free edition of Altcoin Investing Picks.

I hope you enjoyed last week’s issue “What are VCs betting on?”

Today I want to share a few on-chain highlights to help you navigate the current situation and make smarter investment decisions.

Let’s go!

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Top Chains Performance (30d)

Gainers ⬆

• Mkt Cap: $SUI (+20.3%), $NEAR (+6.5%), $BNB (+0.5%)

• Total Value Locked (TVL): $FTM (+33.1%), $NEAR (+10.2%), $ETH (+5%)

• Daily Active Addresses: $SUI (+295.4%), $MNT (+284.2%), $NEAR (+167.1%)

Losers ⬇

• Mkt Cap: $STX (-33.2%), $STRK (-33.1%), $OSMO (-30.7%)

• Total Value Locked (TVL): $STX (-30.3%), $SEI (-27.3%), $ACA (-25.9%)

• Daily Active Addresses: $APT (-73.2%), $FTM (-71.1%), $SEI (-69.6%)

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After all, blockchains tell us everything about the crypto market.

So, by analyzing the on-chain ecosystem we gain valuable insights to understand where we're heading.

Here’s what I found interesting lately:

1/ All of the major DeFi protocol categories, such as Liquid Staking, Lending, Bridges, Yield, and Derivatives, saw their total value locked (TVL) double or even triple during Q1’24, something that’s not happened since 2021.

Source: DefiLlama

2/ Active addresses reached an all-time high of more than $10M rising 73% year-over-year.

Source: Artemis

3/ Stablecoins continue to have the most active addresses overall, representing ~40% of all activity, but other categories like DeFi and Gaming are showing greater growth.

Source: Artemis

4/ 80% of the daily active addresses in Ethereum's ecosystem are engaged on Layer 2 solutions with Base and Arbitrum leading the way accounting for 28% and 26% of active addresses respectively.

Source: growthepie

5/ Stablecoin activity across major chains is dominated by Tron and BNB Smart Chain, accounting for 45% and 30% of Q1’24 active addresses respectively.

Source: Artemis

6/ While Tron and BSC lead stablecoin activity, chains like NEAR and Avalanche witnessed more significant YoY growth.

Source: Artemis

7/ Sui, NEAR & Aptos witnessed more significant YoY growth than all the other chains in daily transactions.

Source: Artemis

That’s all for today!

Thanks for reading

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Cheers