120 charts: Q4 Web3 and digital assets in 2022

There has been a lot of FUD about Web3 and digital assets lately. Bear market shocks.

Below is a compilation of about 120 charts that put where we are in context.

Status of Web3 and digital assets as of Q4 2022.

category

  1. Bitcoin
  2. Ethereum
  3. Stablecoins
  4. Decentralized finance
  5. DAO
  6. NFT
  7. Metaverse and gaming
  8. Emerging themes – bridges, scalability and consumer socialization
  9. Mobile APP use and redemption recharge

Some caveats

  1. Some of my explanations may be wrong. I’m still learning
  2. I’ve already mentioned the data sources used below
  3. If you’re building cool stuff, HMU. My email is joel@decentralized.co

The data source used

  • Glassnode
  • Nansen
  • Parsec
  • Cryptoquant
  • Santiment
  • Intotheblock
  • TokenTerminal
  • Dune
  • Cryptoslam
  • WeMeta
  • MetaMetriks
  • L2Beat

Let’s start with Bitcoin. As of July 2022, 1 billion Bitcoin wallets have been created. Of these, about 42 million have a non-zero balance. It took Bitcoin about 4 years to see its first 1 million non-zero balance wallets. The last million took six months.

120 charts: Q2022 Web4 and digital assets in 3

This number can easily be considered a “zombie wallet”. Wallets that held small amounts of Bitcoin in random transactions in 2011 may add up. Wallets that hold more than 1 bitcoin set up a new ATH, although it cost 100 times more to get one bitcoin, about 5 years ago.

120 charts: Q2022 Web4 and digital assets in 3

Since the price rose in June 2017, some of the larger wallets have been divested. Wallets holding more than 100 bitcoins peaked at 18k wallets in June 2017, while wallets holding more than 10 bitcoins reached 150k around September 2019, and since then they have more or less flattened.

120 charts: Q2022 Web4 and digital assets in 3

The profit supply percentage is taken from the Bitcoin price and the current price when the token was last moved to see if the token is profitable. At ATH – all UTXOs make a profit, at the moment, about 54% of UTXOs are in the green. Historically, the bottom of this indicator is about 40%.

120 charts: Q2022 Web4 and digital assets in 3

Age groups look at the percentage of network assets that have moved over time. The assumption is that moving some older coins results in lower prices because they are lower in price, with about 40% of tokens not moving for 3 years or more (including Satoshi’s tokens).

120 charts: Q2022 Web4 and digital assets in 3

One way to measure Bitcoin usage is to count the number of transactions worth more than $1 million. While it depends on the price of Bitcoin, a lower limit is being established here. About 3,000 bitcoins worth more than $1 million appear on Bitcoin every day.

120 charts: Q2022 Web4 and digital assets in 3

Nearly 10% of the Bitcoin supply is currently dependent on exchanges (about 2.26 million coins) At its peak, this figure was close to 3 million Bitcoin. Over the past year, about 1 million people have more or less flowed to cold storage / prime brokers.

120 charts: Q2022 Web4 and digital assets in 3

Miners are a key part of the supply chain for new coins to enter the market. Determine the supply of slightly more than 1.9 million bitcoins (9%) held by the wallets they hold. They appear to be strong holders – possibly due to hedging through off-chain instruments such as options.

120 charts: Q2022 Web4 and digital assets in 3

At its peak, miners held close to $168 billion worth of Bitcoin. That figure is now around $33 billion. As mentioned earlier, it would be unfair to imply that they lost all these gains. A large part of this is likely to be hedged.

120 charts: Q2022 Web4 and digital assets in 3

Correlation is not causality and so on – but it’s worth observing that last year, miners owned wallets made the most transactions to exchanges. Since then, trading by miners to exchanges has been declining.

120 charts: Q2022 Web4 and digital assets in 3

The Coinbase Premium Index looks at the difference between the Coinbase pro price (for BTC, in USD) and the price on binance (in USD for BTC) This is a measure of US investors’ interest in buying BTC. It’s been a bit flat lately – but it’s worth noting the May 2022 discount.

120 charts: Q2022 Web4 and digital assets in 3

Thanks to Do Kwon, this premium gap has dropped from around $160 when Elon talked about Bitcoin in January 2021 to a low of $140 for now – it remains choppy, just like the rest of the market.

120 charts: Q2022 Web4 and digital assets in 3

On average, about 350 billion bitcoins are transferred through Bitcoin every week. In terms of size, this is about 5 times the annual inbound remittances to India, a figure that varies according to the price of BTC, but is still above the $200 billion range in 2017.

120 charts: Q2022 Web4 and digital assets in 3

I will end Bitcoin with WrappedBitcoin. At the moment – coins on the WBTC are about 50 times more than the capacity of the Lightning Network.

120 charts: Q2022 Web4 and digital assets in 3

120 charts: Q2022 Web4 and digital assets in 3

About 250,000 bitcoins of that – about 60,000 bitcoins were at the heyday of MakerDAO. Now the number is closer to 40k. DeFi yields are naturally a key driver of this mix between Ethereum and Bitcoin.

120 charts: Q2022 Web4 and digital assets in 3

Players like Alameda, Grapefruit, and 3 Arrows (uh) – historically critical to its adoption. Part of the reason for the June fire was that the market self-adjusted in May and stress-tested everyone’s balance sheets.

120 charts: Q2022 Web4 and digital assets in 3

120 charts: Q2022 Web4 and digital assets in 3

In terms of market share, nothing can be compared to the WBTC. The second largest player has a 5% supply of BTC-ON-ETH. Given their distribution and reach, I think a similar product launched by Binance could generate huge appeal.

120 charts: Q2022 Web4 and digital assets in 3

That being said – it looks like interest in the Bitcoin wrapper variant is indeed declining. In its heyday, we saw nearly 55K WBTC minted every month. In August, that number dropped by about 80%.

120 charts: Q2022 Web4 and digital assets in 3

Next, we look at what happened to Ethereum. If we take deployed smart contracts as an indicator of developer interest – it can be said that activity has tended to the level of 2019. However, this does not account for the fact that other chains may attract the attention of developers.

120 charts: Q2022 Web4 and digital assets in 3

Santiment has a developer activity index that requires several GitHub repositories and their activity to give indicative metrics. Here’s how Solana, Matic, and Avalanche caught up with Ethereum. Note: The data is very rudimentary and does not make much sense / has gaps in itself.

120 charts: Q2022 Web4 and digital assets in 3

Developers are developing in multiple places, but what happened to Ethereum? Let’s start with the basics. An active wallet is a great place to start. I find it interesting that despite a one-year bear market – Ethereum wallets have not noticeably fallen back to new lows.

120 charts: Q2022 Web4 and digital assets in 3

A 2x increase in daily active addresses isn’t much – but it’s impressive. Since the last ATH, non-zero wallets on Ethereum have increased from about 8 million to 86 million. Admittedly, people use multiple wallets – a good metric for measuring network activity.

120 charts: Q2022 Web4 and digital assets in 3

People will always argue that these are zombie wallets – so we explored wallets over 1 ETH and 10 ETH each. Both indicators are at all-time highs. There are about 1.58 million wallets over 1 ETH today – compared to 882,000 in January 2018.

120 charts: Q2022 Web4 and digital assets in 3

120 charts: Q2022 Web4 and digital assets in 3

The measure of whether people trust the network is the percentage of supply in smart contracts. If you can use it to generate revenue, you do it in ETH, where 27% of its supply comes from smart contracts. The bear market didn’t affect that number either.

120 charts: Q2022 Web4 and digital assets in 3

Four of the top ten wallets holding Ethereum are smart contracts or their variants – it remains one of the few assets that CeFi is gradually losing its share of smart contracts. So it’s safe to say – people are using Ethereum – and are increasingly using its smart contracts.

120 charts: Q2022 Web4 and digital assets in 3

This chart breaks down the types of transactions on the web. In 2018, when it reached ATH – about 60% of transactions on the network simply sent ETH from A to B. That number is now down to 30 percent. – 15% for NFTs – Approximately 9% for stablecoins – 10% for DeFi.

120 charts: Q2022 Web4 and digital assets in 3

Use cases such as NFTs, DeFi, and stablecoin transfers actually far exceed the number of transactions associated with ERC-20 tokens in a single day. (Yes, you can also speculate with these apps).

120 charts: Q2022 Web4 and digital assets in 3

Use cases such as NFTs, DeFi, and stablecoin transfers far exceed the number of transactions associated with ERC-20 tokens at one day. (Yes, you can also use these apps for speculation)

120 charts: Q2022 Web4 and digital assets in 3

Most of the balance is held by Binance and Coinbase, which together control about 44% of the ETH balance held by exchanges. The second chart here shows how Coinbase stagnated in market share, while Binance caught up (not sure why Nansen’s chart doesn’t include FTX).

120 charts: Q2022 Web4 and digital assets in 3

120 charts: Q2022 Web4 and digital assets in 3

Okay – so ETH is leaving the exchange, but why? The main contributor to this trend is DeFi. We’ll dig into that later. Since January 2021, approximately 14 million ETH has been used to stake ETH2.

120 charts: Q2022 Web4 and digital assets in 3

There’s been a lot of discussion about this – but interestingly, Lido has far replaced established exchange alternatives in terms of total staking value Lido staked around 4 million eth through it, and 3 million via binance+coinbase.

120 charts: Q2022 Web4 and digital assets in 3

The reason I say exchange deposits for staking is this chart from Nansen – about 40% of staked ETH can be traced back to centralized entities.

120 charts: Q2022 Web4 and digital assets in 3

At the time of writing – there are more than 442k validators on the web. So, part of the attraction for ETH holders is that they can see a theoretical yield of around 4.5% for future ETH stakes.

120 charts: Q2022 Web4 and digital assets in 3

120 charts: Q2022 Web4 and digital assets in 3

Nearly 30% of ETH supply has been dormant for two years or more. I ignored hodlwave over 1 year old here because ETH2 bets affect this metric. This is a large part of the supply that is willing to withstand multiple cycles.

120 charts: Q2022 Web4 and digital assets in 3

Part of the reason for this willingness is that much of the network is in relative profits. $1290 – Nearly 46% of ETH holders are still in the green. During the crash of March 2020, the indicator had an all-time low of around 18%.

120 charts: Q2022 Web4 and digital assets in 3

One of the interesting consequences is that miners hold less ETH. It is possible that they took their AUM and used it for staking – but since January 2018, as of this writing, the miner reserve for ETH has increased from about 400k to 83k.

120 charts: Q2022 Web4 and digital assets in 3

One way to measure how much ETH growth is is to look at the number of smart contracts deployed. As of this writing, there are around 24 million smart contracts on the network. That’s about eight times the 3 million during the 2017 rally.

120 charts: Q2022 Web4 and digital assets in 3

Despite a huge lead, interest in deploying new smart contracts on Ethereum is waning. As a result, the figures are more or less back to the levels of 2019. Developers’ thought sharing may be captured by other emerging Layer 1.

120 charts: Q2022 Web4 and digital assets in 3

Stablecoins have one of the most beautiful growth trajectories of all cryptocurrencies. A few years later, their total market capitalization was over $100 billion. 2022 is the year USDC finally surpasses USDT in terms of market supply.

120 charts: Q2022 Web4 and digital assets in 3

Of that roughly $100 billion, Binance alone has a balance sheet of $26 billion. Although, if – this figure is partly pushed up by the 20 billion BUSD they hold. Purely from the point of view of tether – Binance owns 20 times more USDT than its North American counterparts (ftx, Kraken).

120 charts: Q2022 Web4 and digital assets in 3

There may be a gap in this data as it may not involve certain L2 and non-EVM chains – but in terms of trading volume, stablecoins have grown by about 22x over the past two years, despite the bear market. From about 600 million per day to about 14 billion today.

120 charts: Q2022 Web4 and digital assets in 3

June 2020 (DeFi Summer?) – Today, the cumulative trading volume of the stablecoin TX is about 500,000 per day, close to 200,000. What can happen is 1. Whales use stables as holder assets during bear markets 2. Larger stablecoin transactions with fewer wallets.

120 charts: Q2022 Web4 and digital assets in 3

The reason I recommend it is that transactions worth more than 1 million represent about 90% of mobile trading volume today, although less than 0.5% of the number of transactions. This is in sync with what we usually see in traditional economies – so it’s not surprising.

120 charts: Q2022 Web4 and digital assets in 3

One interesting thing I noticed about this data is that transactions under $100 account for a quarter of all transactions made through stablecoins. People still use these networks to send a small fee, although the cost is around 1-2.

120 charts: Q2022 Web4 and digital assets in 3

This number may drop somewhat due to the lack of coverage of non-ETH chains – but 1. BUSD is the least used stablecoin on smart contracts 2. USDT 17% of the supply comes from smart contracts 3. Nearly half of all DAI and USDC are on smart contracts.

120 charts: Q2022 Web4 and digital assets in 3

I’m curious how many of these stable assets are traded on Uniswap. At its peak – stablecoin trading through Uniswap was around 60,000 times. Approaching 10k today is a significant drop (at the same time as a decrease in number / activity).

120 charts: Q2022 Web4 and digital assets in 3

Until January 2020, we saw about $1 billion flowing on-chain through stablecoins in a single day. That number is now up about 25 times on a random day. In the chaos of May 2022 – about $87 billion worth of stablecoins moved between wallets. (conservatively)

120 charts: Q2022 Web4 and digital assets in 3

Which brings me to the next part – DeFi. This chart by Richard Chen shows the exponential growth rate of DeFi. From about 4k users in January 2019 to 4.7 million today. DeFi has about 10 million users, or less than 0.3% of the network’s user base.

120 charts: Q2022 Web4 and digital assets in 3

Whenever the media reports on DeFi – it rushes to explain how DeFi TVL collapsed, without taking into account the fall in the price of the underlying asset. It wasn’t until May 2020 that DeFi reached the first billion TVs and from there we were still 50 times more.

120 charts: Q2022 Web4 and digital assets in 3

Similarly, there is a general rush to clarify how MAUs on DeFi crashed. According to my observations, in the absence of token rewards, there will be pullbacks, especially in trading volume. But the users themselves are not disappearing.

120 charts: Q2022 Web4 and digital assets in 3

120 charts: Q2022 Web4 and digital assets in 3

120 charts: Q2022 Web4 and digital assets in 3

That’s not to say that trading volume hasn’t taken a hit – our volume on the Defi platform dropped from a peak of $250 billion to about $100 billion . But here’s the fun – $100 billion is still 5,000 times the average $20 million per month traded in 2019.

120 charts: Q2022 Web4 and digital assets in 3

Decreased trading volume + lack of token incentives = lower fees generated. At its peak, the famous DEX platform generated around $600 million in expenses; We’ve now reduced our costs to about $80 million.

120 charts: Q2022 Web4 and digital assets in 3

TVL on these platforms has dropped from $50 billion to about $20 billion – but in terms of declining activity, it seems like we’ve formed a bottom. Those who are still doing LPing and trading are sticky users and will likely continue to do so.

120 charts: Q2022 Web4 and digital assets in 3

TVL’s decline also applies to lending apps – down about 50% – in part due to the May crash. At its peak, lending apps processed about 58 billion – about 18 billion now.

120 charts: Q2022 Web4 and digital assets in 3

Lack of volatility + borrowing demand hit the cost of lending apps – the cumulative monthly fees for these platforms dropped from about 120 million to about 20 million.

120 charts: Q2022 Web4 and digital assets in 3

Borrowing demand has increased from around $30 billion to $13 billion – and it’s safe to say that yield + platform fees have been declining for a long time. I do find it interesting, though, that over the past few months, there has been an upfront fee for this price.

120 charts: Q2022 Web4 and digital assets in 3

Looking at the price/expense ratio, players like Maple and Goldfinch are still in Tradfi bank multiples. Obviously, players like aave and compound have premiums associated with them – but prices are more or less in sync with the expected fees.

120 charts: Q2022 Web4 and digital assets in 3

Over the past two years, lending apps alone have incurred $1.2 billion in fees – that’s a cumulative chart, so forgive the crime chart. We are still declining.

120 charts: Q2022 Web4 and digital assets in 3

Same – the exchange has charged about $5 billion in fees over the past two years The fee here could be a mix of platform revenue + token incentives – so in the future, we may see a bit of a stagnation here unless there is a significant increase in platform activity.

120 charts: Q2022 Web4 and digital assets in 3

Despite poor market conditions, some markets are still growing. Take GoldFinch, for example, – their borrowing remains strong despite the downward trend.

120 charts: Q2022 Web4 and digital assets in 3

120 charts: Q2022 Web4 and digital assets in 3

Maple Finance’s loan desk charged $40 million in fees last year. At one time, the CEFI lending channel struggled to maintain relevance and customer base.

120 charts: Q2022 Web4 and digital assets in 3

120 charts: Q2022 Web4 and digital assets in 3

In fact, the mortgage undersupply may be one of the healthiest sectors in this market cycle. The image below is for Centrifuge – their fees and borrows are both ATH.

120 charts: Q2022 Web4 and digital assets in 3

GMX (comparable dydx) has a similar trend. Last month, the exchange traded around 8.6 billion, which is a new ATH. The cost for this month is more than $13 million. It’s safe to say that part of DeFi is still healthy and strong.

120 charts: Q2022 Web4 and digital assets in 3

Okay – about DAOs The DAO on Ethereum alone handled about $9 billion, down from $12 billion a year ago. Chart below – from @DeepDAO_io. There are 16 DAOs managing more than $100 million in funding. So far, about 700,000 of the 4 million DAO-related token holders have voted.

120 charts: Q2022 Web4 and digital assets in 3

In terms of DAOs that hold them, ETH remains the most popular asset, followed by USDC. The 254 DAOs in ETH hold about $543 million. For USDC – it is $ 683 million, almost twice as much as DAI.

120 charts: Q2022 Web4 and digital assets in 3

Uniswap’s coffers handled around $12 billion at its peak. In the past six months, it has approached $2 billion. Even today, most of them are held in UNI. Of the 350,000 DAO token holders – 47,200 votes were cast last month (slightly higher than about 1.5% of active voters).

120 charts: Q2022 Web4 and digital assets in 3

120 charts: Q2022 Web4 and digital assets in 3

Similarly, BitDAO’s funding has decreased from $6 billion to about $2.7 billion in the last six months. Of the 20k DAO token holders, only 40 voted last month.

120 charts: Q2022 Web4 and digital assets in 3

Only 1 DAO has more than 10,000 voters in the past six months. While governance – is fun as a concept, DAO engagement isn’t as high as you might think. Tornado cash has 90 DAO voters in 6 months.

120 charts: Q2022 Web4 and digital assets in 3

120 charts: Q2022 Web4 and digital assets in 3

That’s not to say DAO as a concept is dying. Players like @SyndicateDAO continue to make it easier for individuals to build DAOs according to the dashboard on Dune (user: gm365) – so far around 6.7 ETH has been deployed through Symidcatate’s 3800k club.

120 charts: Q2022 Web4 and digital assets in 3

If you think DAOs are all about whales – consider value investments below 1 ETH that account for about 70% of investors coming in through Syndicate DAOs today. These platforms are essential infrastructure for the “democratization” of capital-driven collaboration.

120 charts: Q2022 Web4 and digital assets in 3

One measure of DAO interest is the number of newly launched “investment clubs.” Syndicate DAOs continued to help launch more than 100 DAOs during the single-day peak in September. With retail interest returning, we may see around 1000 clubs in a single day.

120 charts: Q2022 Web4 and digital assets in 3

I also believe in cost reduction – by using players like Polygon will speed up the formation of DAOs. To put it in context – Syndicate’s product on Polygon has accumulated three times as many DAOs (18,600 clubs).

120 charts: Q2022 Web4 and digital assets in 3

Now – about NFTs. Much has been discussed about the significant drop in trading volume around them during the year. People overlook two things 1. Relative drop in NFT price (if the number of tx remains the same, it will result in a decrease in trading volume) 2. Decreased risk appetite.

120 charts: Q2022 Web4 and digital assets in 3

If you look at the market from the point of view of active users – the decline is not as big as you think. We peaked at around 400,000 – now about 275,000 weekly active users A fair criticism is how small the market is.

120 charts: Q2022 Web4 and digital assets in 3

These users make an average of two transactions on-chain (on ETH) per week. So it’s safe to say that the remaining user base is highly sticky and active. Moreover – contrary to repeated statements – trading activity has not declined.

120 charts: Q2022 Web4 and digital assets in 3

These users may be in a hurry to sell and exit? Not true. Most of these wallets continue to buy – about the same frequency as at the beginning of the year. Compared to last year – we now have more users trading.

120 charts: Q2022 Web4 and digital assets in 3

One possible criticism of the data here is that these are just zombie wallets. However, if you look at this chart to explore the nature of wallet return 1. Yes, there is a flat line for new users 2, the number of existing users has not decreased. – If anything, it reached a new ASH in February.

120 charts: Q2022 Web4 and digital assets in 3

That’s not to say NFTs are in good condition. From a price perspective, NFT traders have taken a hit in terms of (i) ETH price drop (ii) lowering the price at which NFTs are priced in ETH An index maintained by Nansen shows the state of NFT price prominence during the year.

120 charts: Q2022 Web4 and digital assets in 3

Some thoughts on what I see on the index 1. NFTs linked to profile images perform well 2. Gaming-related NFTs are a disaster (ATM) 3. Linked NFTs account for about 7% of the market’s trading volume.

120 charts: Q2022 Web4 and digital assets in 3

Ok – so the price is down. How much activity has decreased?

This is where data becomes interesting.

Every news outlet loves to take data from November 2021 (peak) and show how everything has collapsed since then. So here are some scaled-down charts.

First of all – create an NFT collection. 2020 – The total NFT collection is around 5k. Today, we see as many NFT collections being released every day.

120 charts: Q2022 Web4 and digital assets in 3

The number of NFT sales has increased by about 200 times over the same period. From about 2k sales per day in January to 400k today. So far, 23 million NFT sales have taken place.

120 charts: Q2022 Web4 and digital assets in 3

Sales are mainly concentrated in the top series (BAYC, cryptopunks, etc.) – but this does not mean that there is no sales activity for smaller series.

120 charts: Q2022 Web4 and digital assets in 3

In fact, Nansen shows that smaller projects with less sales have been on the rise. Digit. Since last year, collectibles selling only about 10 pieces per week have grown from about 1,300 to more than 3,600.

120 charts: Q2022 Web4 and digital assets in 3

Despite the downward trend in activity, NFT-related wallets now account for around 6% of all active ETH wallets. Like it or not, this is how retail is evolving.

120 charts: Q2022 Web4 and digital assets in 3

High-priced NFTs have more or less become their own asset class. Bored Apes and Cryptopunks have trading volumes of nearly $2 billion each.

120 charts: Q2022 Web4 and digital assets in 3

Despite its decline this year, Axie Infinity is still leading the way in NFT sales. To date, Sky Mavis creations have completed about 17 million transactions in their personal game. Beaten by the NBA’s number one in just 21 million deals.

120 charts: Q2022 Web4 and digital assets in 3

What I find interesting is that only two NFTs account for about 20% of Etheruem (punk and BAYC) trading volume. Low-cost chains like Solana, Polygon, and Avalanche are catching up — but they may need another cycle to scale.

120 charts: Q2022 Web4 and digital assets in 3

One area where the collapse occurred was the cost of land in the virtual world. The floor price of land on both the Sandbox and Decentraland platforms has fallen by about 80%. It’s not just land prices that are falling.

120 charts: Q2022 Web4 and digital assets in 3

The overall demand for real estate in the virtual world is likely to drop significantly. The median price per square meter of land on Decentaland has dropped from $70 to about $12 – (, which is related to the decline in BTC and eth prices)

120 charts: Q2022 Web4 and digital assets in 3

What worries me (and this figure may be wrong) is that of the two largest Metaverse land projects, only about 100 people buy “Metaverse real estate” in one day. There are more VCs than users investing in Metaverse projects.

120 charts: Q2022 Web4 and digital assets in 3

The number of plots sold is also declining. Signs of reduced mobility for existing landowners in these Metaverse projects. In the first week of December, Decentraland and Sandbox had about 2,200 sales. Now that number has dropped to a few hundred per week.

120 charts: Q2022 Web4 and digital assets in 3

While we slam how “bad” the Metaverse of Meta and fortnite is – it’s worth considering that some of the most famous Metaverses we have have an average concurrent user base of around 2000 users. We need better bridges… Gateway to the Metaverse.

120 charts: Q2022 Web4 and digital assets in 3

Speaking of bridges… There are now more than 1 million wallets interacting with some form of bridge. Conservative estimate – this is 10% of all wallets that interact with DeFi. It’s still in its early stages, but it’s growing fast.

120 charts: Q2022 Web4 and digital assets in 3

Polygon’s bridges alone manage approximately $29 billion in inflows. It’s also impressive to see multiple off-chain-specific bridges trading over $1 billion. Aggregators may contribute to this digital scaling.

120 charts: Q2022 Web4 and digital assets in 3

Overall, though, the TVL of bridges has declined – from over 50 billion to about 15 billion now. This may coincide with falling asset prices, concerns about hacking, and a lack of token incentives.

120 charts: Q2022 Web4 and digital assets in 3

In the case of Layer 2, the situation is completely different. Despite the pain of the past six months, their TVL has only increased from about 7.5 billion to 4.7 billion. Part of the reason that may have contributed to this is the expected airdrop.

120 charts: Q2022 Web4 and digital assets in 3

Still, they’ve been powering a growing number of consumer apps. @viamirror is one of the best examples. The platform has raised nearly 10,000 ETH. It is becoming the platform of choice for creators who want to monetize their work.

120 charts: Q2022 Web4 and digital assets in 3

The bear market has affected people’s generosity – monthly net pay increases have been declining. But it is interesting to note their growth. One way to think about it is – Mirror may be distributed to creators more times in 1 year than Medium distributes in 10 years.

120 charts: Q2022 Web4 and digital assets in 3

Mirror is still a niche market now. At the peak – they have 3000 wallets sponsoring ideas. Now it drops to -500. But it’s safe to say that they pioneered another model with relative success.

120 charts: Q2022 Web4 and digital assets in 3

Finally, I’ve summarized some data about mobile apps – and how they compare to traditional variants. The following diagram shows the DAUs for coinbase, Binance, and Robinhood. At its peak, Binance had almost twice as much DAU as Robinhood (although it was a global app).

120 charts: Q2022 Web4 and digital assets in 3

I wonder if this trend will persist in a regional market like India – Zerodha is the number one stock trading app here. You can see how interest in crypto is slowly spreading to the point where crypto apps have more DAUs than established players.

120 charts: Q2022 Web4 and digital assets in 3

The demographics of these apps are broadly similar. The largest user base of these digital investment apps is almost always 25-34 years old. Coinbase has a very large gen-z user base. (Top = male user base, bottom = female user base)

120 charts: Q2022 Web4 and digital assets in 3

The drop in price doesn’t really translate into a significant drop in time spent on these apps. In its heyday – Binance spent nearly 1800 years a month on the app. That number now drops to about 1063. People still love tokens.

120 charts: Q4 Web3 and digital assets in 2022

I do find it interesting – people spend very little time per session. Most users of these financial applications spend about 30 seconds per session on average. Part of the reason is that the mobile interface is not suitable for trading. The data on the desktop may look very different.

120 charts: Q4 Web3 and digital assets in 2022

End with this chart – it shows cumulative exchange deposits to wallets for USDT, USDC, ETH, and BTC. In 2019 – its trend on a given day was about 60k. Today, that number is closer to 180k. I use this metric as a rough measure of market growth.

120 charts: Q4 Web3 and digital assets in 2022

Overview

  • Yes, the numbers have fallen
  • But in several areas it is up 10-50 times compared to the previous cycle
  • Journalists need to stop getting the chart from the last top to measure, zoom out
  • Applications are still competing for PMF
  • Trading activity is down, but users are stickier

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/120-charts-q4-web3-and-digital-assets-in-2022/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2022-10-14 23:31
Next 2022-10-15 10:11

Related articles