DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

This paper will analyze the recent DeFi field value proposition presented, as well as NFT and games on the surge in the value chain to produce a stream of what impact will also be focused on the analysis of Ethernet Square and DeFi pattern BSC, and  OpenSea  and  Axie Infinity  and other dApp . Since June last year, the DeFi industry has seen a huge flow of value, but how does the value flow from one point to another? Is the value of DeFi still there? We know that Ethereum still maintains a leading position in terms of total lock-up volume, but will other blockchains (such as Solana and Terra) have an impact on the value stream? And will the explosive growth of NFT also affect the direction of value flow?

At the time of writing, the total amount of DeFi locked up reached 189.05 billion U.S. dollars, of which $162.79 billion was locked in 6 blockchains. From July 23 to September 5, the total amount of DeFi locked up increased by 75%, and it once soared. To a peak of 195 billion US dollars. In fact, the substantial increase in lock-up volume has occurred recently. For example, the total lock-up volume of Ethereum has increased by US$68 billion in the past two months, and the total lock-up volume of the two blockchains, Solana and Avalanche, is also here. During the period, it soared from tens of millions of dollars to billions of dollars.

 

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

But the question is, does such a high lock-up amount translate into value? It seems not. Although the lock-up amount is one of the most important indicators to evaluate the DeFi status, it cannot be used to better assess the value flow. The lock-up amount is completely dependent on the underlying asset, which instead provides a wrong perspective for the value flow. For example, an ETH holder may borrow some USDT or USDC with the ETH locked in Aave as collateral, then this person goes to Uniswap to conduct arbitrage transactions and exchange the stable currency back to ETH, and finally lends ETH in Curve Or Compound. During this process, we found that the value locked in these dApps and protocols has increased, but the amount of locked positions has not changed much.

Value stream: Ethereum DeFi

When it comes to DeFi, Ethereum is undoubtedly the most concerned blockchain, and it is also the blockchain with the highest lock-up volume (approximately US$121.99 billion), so it is obviously more meaningful to analyze the main activities of the Ethereum network. More representative. However, in view of the above reasons, we will not study the lock-up volume indicator here, but focus on exploring the supply of tokens locked in the DeFi protocol. This is because the lock-up volume is often affected by the fluctuation of the price of ETH USD, so according to the basics The analysis of asset supply can better reflect the value growth.

First of all, we look at the encapsulation of Ether-WETH. The supply of this token has increased significantly. From July 2020 to May 2021, we can observe that the supply of WETH locked in the Ethereum DeFi dapp has steadily increased. , Which also shows that the value of WETH has increased, which is mainly due to the following three reasons:

1. There are a large number of liquid trading pairs based on WETH

2. The convenience of connecting to other blockchains is improved

3. Become the main asset of trading NFT

虽然从 2021 年 5 月到 7 月期间这种上涨趋势有所减缓,不过之后又快速恢复到高位。总体来看,以太坊 DeFi 领域里的 WETH 供应量增加可以证明价值增加。

 

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

接下来,让我们把注意力转移到 DeFi 领域里的稳定币——稳定币在 DeFi 中被广泛用于风险管理“单位”,虽然稳定币不会给持有人带来太具吸引力的收益,但却有助于降低 DeFi 产品相关风险,比如“无常损失”(impermanent loss)和价格波动等。目前 DeFi 领域里几个最重要的稳定币包括 USDC、USDT 和 DAI。

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

通过分析,我们可以看到 2021 年第一季度稳定币供应量出现了大幅飙升,尽管增长曲线表现的都不太规则,但可以看出增长趋势与 WETH 供应量增长趋势基本同步——

  • 就 USDC 而言,以太坊区块链上的 USDC 供应量显著减少,但由于 USDC 在 Solana 和其他区块链上发行量有所增长,因此 USDC 的整体供应量稳步增加。从另一个角度来看,虽然 DeFi 整体价值保持上涨,但以太坊上的 DeFi 价值却正在发生转移。

 

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

  • 就 USDT 而言,我们能够观察到 Tether 供应量一直在 dApp 之间转移,这意味着价值并没有“流出” DeFi 领域。

 

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

最后,以太坊区块链上顶级 DeFi dApp(比如 Aave、UNI 和 Sushi)原生代币供应量都保持了稳定增长,同样表明价值并没有“以相当大的方式”从 DeFi 领域里流出。

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

然而,DeFi 价值的确出现了“流出”迹象,这是因为 NFT 和游戏两个垂直领域兴起。

NFT 价值流分析

8 月 NFT 交易量创下历史新高,交易额高达 52 亿美元。与 DeFi 一样,90% 的 NFT 交易量发生在以太坊区块链上,其中最引人注意的就是 NFT 市场 OpenSea,因此我们将专注于这个特定的市场。

OpenSea allows users to trade NFTs in different currencies. Individual users can use ETH, WETH, USDC, DAI, and Polygon (MATIC) to trade the works they want. 99.7% of the transactions use ETH or its packaged version WETH.

 

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

In addition, by analyzing the number of ETH, WETH and USDC traded on OpenSea in 2021, we also found that there has been a significant surge in the usage of these assets.

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

The number of ETH or WETH in the NFT field has increased significantly, which indicates that NFT use cases are beginning to increase. It is worth mentioning that the ETH in DeFi declined in May of this year, while the use of ETH in NFT has risen at the same time, which shows that the growth of the NFT market is organic.

 

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

In addition, by analyzing usage trends, we also found an interesting pattern. At the end of May, the number of transactions interacting with DeFi dApps dropped sharply, while the number of transactions involving games and NFT dApps increased significantly. From the perspective of tokens, the overall flow of value does not seem to have changed, but it is clear that the focus has shifted from DeFi to other areas, namely NFT and games.

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

Although value has flowed from DeFi to NFT to some extent, it seems that these two vertical fields are generating value “independently”. From the internal ETH supply of OpenSea analyzed above, it can be seen that the value generated by the NFT vertical field is organic. In addition, in DeFi, the supply of some of the most commonly used tokens does not appear to have any significant downward trend, which indicates that the NFT usage rate is higher. The value proposition brought by NFT may indicate that the market investment perspective is changing, not just the value transfer from one category to another, but also that investors are willing to use ETH to buy NFT. In short, the value of DeFi continues to grow, and NFT A value stream has been generated since August.

Next, we will re-examine another vertical field that generates a lot of value, namely: gaming.

“Play while earning” game turned out

Similar to what happened with NFT, blockchain-based games have recently achieved great success. The most noteworthy of these is the innovative category of “play while earning”. We will focus on Axie Infinity in this article. Axie Infinity has always been a pioneer in the field of “playing and earning” games. In late April this year, it switched to the Ronin sidechain, but at the same time it still maintains a very close relationship with Ethereum.

All Axie Infinity tokens, whether ERC 20 or ERC 721, are hosted on the Ronin sidechain. Therefore, if players want to play the game, they need to transfer or bridge ERC-20 tokens to the Ronin sidechain. This trend can be clearly seen by analyzing the net ETH traffic in the Ronin bridge. Therefore, it can be seen that the value is beginning to go to Axie Infinity. Ecosystem transfer.

 

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

As can be seen from the above figure, the net inflow of ETH is positive, indicating that the amount of ETH flowing into the Ronin side chain exceeds the amount of flowing out of the side chain. It can be seen that the value is concentrated in this network. In fact, this trend is not surprising. Axie Infinity is the most engaged game in the entire blockchain game industry, with an average of more than 1.5 million daily users. Since June, monthly revenue has also been in the leading position.

Analyzing the Axie Infinity indicator can prove the value proposition generated by the dApp. Since May, the game has more than 5.1 million transactions, with a total transaction value of more than 2.15 billion U.S. dollars and more than 9.3 million traders.

Like NFT, blockchain game value growth seems to be organic. In order to further clarify this situation, it is worth reviewing another blockchain: BSC.

Value stream: BSC DeFi

BSC is the blockchain with the second largest lock-up volume. Currently, the lock-up volume is about 22 billion U.S. dollars. It is also the blockchain of choice for the commonly used DeFi dApp PancakeSwap. Overall, BSC provides another good choice for evaluating the flow of value within the blockchain industry.

The main asset used for DeFi purposes in the BSC network is BNB (WBNB), which has basically shown a growth trend from early 2021 to mid-May (although there have been several fluctuations during the period), but has declined since then, and the current supply is already higher than the May level A drop of about 33%.

 

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

If we consider stablecoins as a variable, we also observe a similar downward trend. In mid-May, possibly affected by the Venus liquidation event, the supply of stable assets in BSC suddenly dropped sharply. In general, although the supply of stablecoins in the BSC network has increased from January to May 2021, there has been a significant decline since then (as shown in the figure below).

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

If you want to analyze the DeFi status of BSC, you have to mention PancakeSwap (CAKE). The current lock-up volume of PancakeSwap is approximately US$9.22 billion, accounting for 42% of the total lock-up volume of the BSC network. The figure below shows the increase in CAKE supply, indicating that PancakeSwap occupies most of the value on the BSC network, similar to the situation of WETH in Ethereum.

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

It is worth noting that three of the ten trading pairs with the largest trading volume in PancakeSwap have “game elements” (MBOX, BMON and WANA), thus strengthening the GameFi value proposition in BSC.

In addition, just like in Ethereum, in BSC, the GameFi movement has also attracted thousands of users into the game dApp. We clearly found that the number of DeFi dApp-related transactions in the BSC decreased in May, but there was a sharp increase in the number of NFT and game transactions, especially the increase in game transaction volume.

 

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

By analyzing the new dApps launched in recent months, we found that the number of game dApps has begun to increase (as shown in the figure below). Since June, the number of NFTs and game dApps has been on the rise. On the other hand, the number of DeFi dApps launched has decreased significantly. Although it has not had much impact on the value stream at this stage, at least the industry value proposition and some of the latest trends can be seen from it.

DappRader report: The value stream on the chain begins to shift from DeFi to NFT and games

Although there is still an “order of magnitude” gap between game transaction volume and DeeFi transaction volume, user preferences have begun to shift from DeFi to games. In addition, although there is no clear evidence in Ethereum that value is shifting from one vertical category to another, in BSC, this shift is still very obvious.

in conclusion

In general, DeFi has become one of the most commonly used “gateways” for interacting with other categories such as NFTs and games, and generates value during the interaction.

Ethereum’s lock-up volume still maintains its leading position. To some extent, the value of DeFi has begun to be affected by the explosive growth of the two vertical categories of NFT and gaming. In addition, by analyzing OpenSea, we found that the value generated by NFT on the Ethereum chain seems to be organic. NFT is bringing about a shift in investment paradigm. More and more investors are willing to use ETH to buy NFT; and by analyzing Axie Infinity, we find Blockchain games also generate great value. More importantly, blockchain games can generate value on their own and do not rely on value transfer from one vertical category to another.

All in all, by analyzing some indicators, we can have a clearer understanding of the value proposition presented in the blockchain industry. Although the two most popular trends are NFT and games, DeFi is also creating value. Frankly speaking, NFTs and games in Ethereum (such as Axie Infinity) generate real organic value, which is indeed a positive sign. With the growing consolidation of NFT development and the launch of a new batch of blockchain games, the industry will usher in greater innovation. Therefore, it will be very “interesting” to further observe the subsequent flow of value on the chain.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/dapprader-report-the-value-stream-on-the-chain-begins-to-shift-from-defi-to-nft-and-games/
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