The weekly 🐰 hole (12 Mar 23) of liquidity movement & DeFi analysis - by zj.valz

We’ll uncover key trends, insights into the top DeFi protocols, and hidden gems.

Stables are depegging, and everything is going to zero. What a rough week but let’s see what the figures are telling us.

1. Stablecoin flows

2. Smart Money Movement (Discontinued from this week onwards)

3. Top L1/L2 Financials

4. Top DAPP Financials

5. Movement Analysis

6. TLDR

1. Stablecoin Flows

Total Stablecoin MCAP = 131.91B with -2.30% weekly change.

Top 10 Chain (In terms of Stables Mcap):

Top inflows:

1. Aztec

2. Celo

3. SXnetwork

4. smartBCH

5. Kava

Top outflows:

1. Waves

2. Canto

3. Hedera

4. Wanchain

5. Telos

2. Smart Money Movement

Discontinued cus I am poor and cannot afford Chainedge’s subscription.

3. Top L1/L2 Financials

Fees-Generated

1. ETH

2. BTC

3. BNB

4. Optimism

5. Polygon

Revenue

1. ETH

2. Tron

3. Filecoin

4. Polygon

5. BNB

Earnings

1. ETH

2. Tron

3. Arbitrum

4. SX

5. Stellar

DAUs

1. Tron

2. BNB

3. BTC

4. Polygon

5. ETH

Active Developers

1. ETH

2. Polkadot

3. Kusama

4. Cosmos

5. Cardano

4. Top DAPP Financials

Fees-Generated

1. Uniswap

2. Lido

3. GMX

4. Blur

5. Convex

Revenue

1. dYdX

2. GMX

3. Maker

4. Lido

5. Pancakeswap

Earnings

1. dYdX

2. GMX

3. Maker

4. Gains

5. ENS

P/F Ratio

Relative valuation of protocols (Lower the no. the “better”)

1. Gamma

2. Hegic

3. Spookyswap

4. Idle

5. Convex

P/S ratio

FDV mcap/Annualized Revenue (Take this metric with a pinch of salt as revenue figs used could be annualized and not actual revenues earned)

1. Hegic

2. X2Y2

3. BetSwirl

4. Looks

5. Gains

DAUs

1. Pancakeswap

2. Osmosis

3. Uniswap

4. OpenSea

5. 0x

5. Movement Analysis

Stablecoin flows:

• Total Stablecoin market is down -2.30% this week as Tradfi bank run cascaded to the stablecoin market this weekend.

• All stablecoins, other than USDT and BUSD, have depegged over bank run fears.

• Circle just released their statement regarding USDC and SVB here: https://www.circle.com/blog/an-update-on-usdc-and-silicon-valley-bank

  https://twitter.com/jerallaire/status/1634650432910901249?s=20

Smart Money movements:

• Discontinued from this week onwards

L1/L2 movements:

• The majority of L1/L2s are red this week with more carnage expected over the next few days while the whole SVB situation gets resolved.

• BSC has the smallest change as BUSD remains relatively stable.

• A silver lining from all these is that ETH turned deflationary this week:

DAPP movements:

• AMMs and PERP dex are printing this week due to the increased volatility from this depeg event.

• Makerdao’s balance sheet remains relatively strong with enough collateral to back outstanding $DAI.

  https://twitter.com/MakerDAO/status/1634410047592620034?s=20

• While all this carnage ensues, BTC and ETH remain relatively strong all things considered compared to the FTX debacle.

6. TLDR

• Contagion is spreading from Tradfi to the Crypto markets. Low liquidity weekend exacerbated the issue and caused majority of stablecoins to depeg.

• Monday (13 Mar 23) will be extremely important, but I am confident Circle will come out ok and USDC will repeg to $1 next week.

• But as always nothing is confirmed, always play it safe by spreading out your stablecoins to USDT/BUSD/DAI or convert them all to BTC/ETH and wait this out on the sidelines.

• Stay safe and manage your risk anon, will see you on the other side next week.

Conclusion

That’s it Anon, hope you enjoyed the 🐰hole this week.

Follow me @zec_jay on Twitter or subscribe to this substack for more weekly deep dives like this.

Credits: