Our Network: Issue #82

Coverage on Handshake, Bitcoin, Ethereum, and Terra.

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About the editor: Spencer Noon is an investor at Variant, an early-stage crypto VC fund. Fundraising? Reply directly to this email and introduce yourself.

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This week our contributor analysts cover L1s: Handshake, Bitcoin, Ethereum, and Terra.

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① Handshake

👥 Zach Brown

📈 Handshake surpasses 1.6M names opened

👉 Join the Handshake community Discord

🔎 Check out the dashboard

  • Handshake is a decentralized naming protocol. 1.6M total names have been opened on Handshake in less than eighteen months. This is 1,000x more names than the 1.6K top level domains approved by ICANN in the traditional DNS root zone. This month of July marks one million names opened in the calendar year of 2021. Names opened are also up 25% since our last Our Network update eight weeks ago.

  • Names are won through Vickrey auctions and then can be resold on secondary markets like Namebase or non-custodially via ShakeDex. The secondary market for Handshake names continues to grow, crossing 14M HNS in total resale volume. One third of resale volume has occurred within the last sixty days.

  • Winning bid amounts for Handshake names are paid in $HNS and burned from supply, a deflationary pressure on the asset. Total HNS Burned is now 22.7M HNS, or 6% of circulating supply. Total HNS Burned is up 58% so far this year.


② Bitcoin

👥 Nate Maddrey

📈 Lightning Network Channels Up 14% Since July 1st

🔭 Explore Bitcoin Resources

📌 Become an Bitcoin contributor

🔎 Check out the dashboard

  • Bitcoin’s hash rate is showing signs of recovery after dropping by over 50% following the May crypto crash. After China started a regulatory crackdown against mining operations, miners have been fleeing China and relocating to new areas. Following a few months of uncertainty, on-chain data suggests that some of those displaced mining operations are starting to come back online. The 30-day average hash rate began increasing in July for the first since the crash.

  • The number of Bitcoin addresses holding between 0.01 and 1 BTC has held relatively steady despite the price crash. On May 11th, there were 8.17M addresses holding 0.01 - 1 BTC. As of July 27th, there are 8.20M addresses holding 0.01 - 1 BTC.

  • The Lightning Network has shown strong growth in July. There are now over 62K open Lightning channels and over 2K BTC held on the network, up from 53.94K channels and 1.66K BTC on July 1st.


③ Ethereum

👥 Alex Gedevani

📈 26% of ETH supply in smart contracts

👉 Get involved with the Ethereum community

📌 Explore the Ethereum job board

🔎 Check out the dashboard

  • ETH fees rebounded 8% MoM to $180m for July. With EIP-1559 around the corner, the amount of ETH burned will be driven by demand for blockspace. Ethereum has 7x the fees of Bitcoin this month per the quickly recovering ETH/BTC fee ratio. For context, BTC fees declined from $42m to $26m MoM for July. Healthy fee markets result in a stronger security budget for Ethereum. A few notable gas guzzlers in the past 24 hours are UNI V2/V3 (19.5% share), Axie Infinity bridge (7%), and Opensea (2.8%).

  • 26% of the ETH supply is now in smart contracts, marking a 49% YTD increase. Exchange outflows remain strong now up to 17% move YTD. With 6.4m ETH being staked and 9.7m ETH in DeFi, ETH usage has held up strong. ETH users are pursuing more yield opportunities vs simply holding ETH idly on CEXs.

  • Ethereum has settled $2.5 trillion in ETH transactions YTD. Although there’s been a big drawdown since May, the current monthly settled volume of ETH for July stands at $167B. Average transfer value of ETH has been reflexive on the way up and down in this cycle, with July numbers dropping to $11.8k.


④ Terra

👥 Brendan Murray

📈 80K+ New Users Flock To Terra In Recent Weeks

👉 Join the Terra community Discord

🔎 Check out the Dashboard

  • Terra has seen a flood of new users in recent weeks. More than 10,000 new accounts were registered on each of the last few days of June, a significant increase over the 5,000 to 8,000 accounts that typically join each day. This is also the highest level of new account growth since the mid-March record-breaking peak caused by the launch of Anchor. Many of these new users quickly began investing in and using core Terra projects, including savings protocol Anchor and synthetic assets platform Mirror.

  • On Anchor, recent activity has seen the highest number of new accounts registering since the platform debuted in March, peaking at nearly 500 new users per day earlier this month. This has likely been driven by volatility in crypto markets and increased interest on loans from the Anchor Money Market.

  • Mirror began to see large spikes in new accounts created in Q1 as new users rushed into the crypto space. Registration numbers returned to lower levels following these initial peaks in mid-March, but the number of new accounts has risen quickly following the recent launch of Mirror v2 on June 24.


Our Network: Issue #81

Coverage on Uniswap, Index Coop, Reflexer, and DODO.

The #1 On-Chain Analytics Newsletter
About the editor: Spencer Noon is an investor at Variant, an early-stage crypto VC fund. Fundraising? Reply directly to this email and introduce yourself.

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This week our contributor analysts cover DeFi: Uniswap x Optimism, Index Coop, Reflexer, and DODO.

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Uniswap x Optimism

👥 Michael Silberling

📈 6k+ Users Try Uniswap's Alpha Launch on Optimism

👉 Learn more about Uniswap on Optimism

🔎 Check Out The Dashboard

  • On July 13, Uniswap announced an "Alpha Launch" of their v3 exchange on Optimism's Layer 2 roll-up. Only 6 tokens were available for trading (ETH, WBTC, DAI, USDT, SNX, sUSD) versus 50 on Ethereum — so what drew in the 6k+ early adopters? Whereas gas fees for Uniswap v3 on Ethereum cost between $4.30 - $14.86 (.00196 - .00644 ETH) per swap over the past 30 days (daily median), gas fees on Optimism ranged between $0.47 - $0.97 (.00025 - .00050 ETH) — about a 14x savings on gas prices overall.

  • It is still in the early days for Uniswap on Optimism. Its all-time high of $1.8M trading volume on July 21st dwarfed the $1.13B traded on Ethereum on the same day. ETH/DAI was the most popular pair on Optimism (50% of volume), versus ETH/USDC on Ethereum (45%); however, USDC was not yet listed on Optimism.

  • After a jolt of $3.64M liquidity to Optimism on launch day, daily net new liquidity added to Uniswap slowed to $240k over the past week. ETH/DAI had the largest TVL of all pools on Optimism and was among the highest APY returners to liquidity providers along with ETH/USDT and ETH/SNX pools.


② Index Coop

👥 JD Cook

📈 171% growth in unit supply in past 90 days

👉 Join the Index Coop community on Discord

🤝 Become an Index Coop contributor

🔎 Check Out The Dashboard

  • The Index Coop is a DAO to make crypto investing simple, accessible, and safe for everyone through crypto index primitives. Unit supply is the number of tokens (“units”) circulating due to market demand. Unit supply has grown by 171% over the past 90 days led by the explosive launch and growth of the FLI product series in April-May and followed by MVI’s 33% unit supply growth in just the past 30 days. The Coop has not experienced a negative week-over-week growth rate in unit supply since March.

  • Units that are not staked for incentives are considered “un-incentivized.” Un-incentivized supply is now at ~93% across all Coop products. This is a signal of product-market-fit for index / exchange-traded products, suggesting that the products alone are desirable for users to hold or trade.

  • Coop products are showing strong user retention — 70%+ of users maintain exposure to DPI and MVI 60-days after their initial buy and 55-60% of traders continue to trade or hold FLI products 60-days after their initial trade. Cohort breakouts of all Coop products suggest increased stickiness over time.


③ Reflexer

👥 Stefan Ionescu

📈 RAI on secondary lending markets surpasses $15M

👉 Get a self-repaying RAI loan

🤝 Join the Reflexer Labs team

🔎 Check Out The Dashboard

  • The amount of RAI outstanding on secondary lending markets surpassed $15M, with Aave being the largest platform. RAI is also the only non-pegged, ETH backed stablecoin on Aave.

  • Out of the many new stable assets issued this year, RAI has one of the most diverse distributions. It’s used as both a store of value and as a way to capture high yield from markets such as Fuse, CREAM, Aave, Yearn, Sushiswap’s Kashi, and Idle Finance.


④ DODO

👥 Ricky Wang

📈 DODO is the dominant DEX for USDT/USDC

👉 Join other CommanDODOs on Discord

🤝 Join the DODO team

🔎 Check Out The Dashboard

  • DODO has been the most dominant DEX for the USDT/USDC trading pair. DODO's Proactive Market Maker (PMM) universal liquidity framework allows for low trading fees and ample liquidity. USDT/USDC is one of the cheapest trading pairs to trade on the DODO platform, with $50 million in TVL powering an average turnover ratio of 120%. The PMM algorithm, coupled with sufficient capital from LPs, allows traders to achieve low slippage swaps that can outperform other DEXs.

  • The popularity of the DODO platform has been increasing rapidly — this past week, when compared to the previous quarter, we saw the number of daily active users increase by 41.6%. The total number of daily active users last month was 327,538, with a DAU:MAU ratio averaging 9.5%.

  • DODO facilitated $453.5 million worth of trades this week, placing it 6th among DEXs in terms of volume. This represents a 1.6% increase in week-to-week volume and accounts for 3.6% of the market share.


About the editor: Spencer Noon is General Partner at Variant, a first-check crypto VC fund.

Our Network: Issue #80

Coverage on Yearn, 0x, 1inch, and Opyn.

The #1 On-Chain Analytics Newsletter
About the editor: Spencer Noon is General Partner at Variant, a first-check crypto VC fund.
Entrepreneur fundraising? Reply directly to this email and introduce yourself ⭐

Our Community Is Hiring

  • Phantom is hiring a Senior iOS / React Native Engineer (Link)

  • Goldfinch is hiring a Senior Software Engineer (Link)

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This week our contributor analysts cover DeFi: Yearn, 0x, 1inch, and Opyn.

① Yearn

👥 Will Leas

📈 Yearn Surpasses $30M In Protocol Revenue

👉 Participate in Yearn Governance

  • Yearn has surpassed $30m in protocol revenue since launch on the back of strong growth in the first half of 2021. Yearn earned more than $23.9m in protocol revenue in H1’21, ~5x greater than all of 2020’s protocol revenue combined.

  • Protocol revenue growth mirrors the growth of Yearn’s TVL. In the first half of 2021, Yearn’s TVL grew 671% from $531m to $4.1b. TVL growth can largely be attributed to the launch and subsequent growth of v2 yVaults.

  • QoQ protocol revenue growth has continued to accelerate. In Q2 2021, Yearn’s protocol revenue grew 236% to $18.4m, up from $5.5m in Q1 2021. V2 yVaults contributed $14.7m of the total $18.4m in quarterly revenue. Quarterly protocol revenue has grown more than 3x QoQ in 2021.


② 0x

👥 Danning Sui

📈 $1B 24h Volume, 200k Monthly Traders

👉 Join the 0x community on Discord

🤝 Join the 0x team

  • 0x API user base in June peaked at ~196k, which has doubled compared with May. It totals up to ~200k when 0x native contracts traffic combined. Among them, 100k are Ethereum traders through various applications.

    New user growth was mainly contributed by the Polygon community -- since the launch on Polygon, over 70k users have traded via 0x API, ~90% of whom are brought by Zapper. First 2 weeks of July show that the scale of Polygon active users is relatively same as Ethereum on 0x API already.

  • Under extremely volatile market condition in May, 0x API volume rocketed to ~3X monthly, with a total of $8.56B across chain ($17.8b when combined with native contracts). Around May 19th, rolling-24h volume hit $1b all-time-highs. Matcha attributes to ~50% of the volume steadily over the past months.

  • In June, Matcha 2.0 launched with a series of feature releases including fiat-on-ramp, multi-chain trading, OTC trading, dark mode, and asset and portfolio tracking. Its volume dominated across integrators in the past 2 months with a total of ~$6b. DeFiSaver took 2nd place with a total of $2b.


③ 1inch Network

👥  Nikita Ovchinnik & Valeriya Minaeva

📈 1inch is the 2nd biggest App in DeFi

👉 Join The 1inch Community On Twitter

🤝 Become a 1inch contributor

  • The 1inch Network has taken a leading position on the current landscape of DeFi protocols by user numbers, currently ranked №2. The 1inch DEX aggregator’s numbers have increased by notable rates since January 2021 and have surpassed the majority of applications that were previously further ahead, reaching over 520,000 active users on the Ethereum network alone.

  • 1inch iOS Wallet numbers: 100k+ downloads. Shortening the path between DeFi and retail users brings growth to the 1inch Wallet for iOS with a native DeFi trading experience. 1inch was able to successfully capitalize on a well-established market of wallets and demonstrate large trading activity.

  • The 1inch Limit Order Protocol is released, $120m+ volume achieved. It replaces a legacy solution from 0x in the 1inch dApp, offering users much more efficient and flexible limit order swaps and access to features that generate significant cash on-chain.


④ Opyn

👥 Wade Prospere

📈 Opyn Reaches All Time High TVL And Volume Traded

  • Opyn is a capital-efficient DeFi options trading protocol that allows users to buy, sell, and create options on ERC20s. At time of writing, there is currently an all- time-high of $74.93m of collateral locked in Opyn option contracts. The 601% increase in TVL since April 12 is due to Ribbon Finance bringing structured products to DeFi. Structured products take options and other complex derivatives and turn them into simple, automated positions that are easy for users to understand.

  • Opyn launched the first-ever partially collateralized options in DeFi on June 29, and after 1 week, 20% of short vaults on Opyn are partially collateralized. There are currently 2k WETH and $1m USDC held in partially collateralized vaults, with an average collateralization ratio of 87.53%.

  • Opyn’s total notional volume grew to its highest level in June with $202mm in notional volume, $148m of which coming from ETH put and call options, $53mm from WBTC call options, and around $613k from UNI call and put options. Notional = option * price of asset at time of trade.


About the editor: Spencer Noon is General Partner at Variant, a first-check crypto VC fund.

Our Network: Issue #79

Coverage on Emerging L1s & Scaling Solutions.

Issue #79 of the on-chain analytics newsletter that reaches 12k crypto investors every week 📈
About the editor: Spencer Noon is General Partner at Variant, a first-check crypto VC fund.
Entrepreneur in need of funding? Reply directly to this email and introduce yourself ⭐

Jump Into Crypto

Careers

  • 💎 Yield Protocol is hiring for a Go To Market Lead. (Link)

  • [Redacted Project] is hiring a CMO. (DM me for info)

  • 🌎 Projects across the space are hiring for engineering, community, product, and design roles. Fill out our talent form and I’ll personally do my best to connect the dots. (Link)

Grants

  • 🔮 The Graph just launched 43 RFPs for various ecosystem projects. Apply today to receive a grant. (Link)

Note: Projects interested in being featured in a future newsletter should reply directly via email


This week our contributor analysts cover Emerging L1s and Scaling Solutions: NEAR, xDai, and Polygon.

① Polygon

👥 Raphael

📈 Polygon resumes user growth, +269% over 60 days

👉 Become a Polygon Advocate

  • Engagement—Polygon resumes daily active user (DAU) growth, growing 5.91% week over week. For three consecutive weeks, Polygon has well over 100k daily active addresses. Average daily users increased 25.11% month over month and ~269% over the last 60 days. Today, Polygon has 20.38% of Ethereum’s DAU and 20.09% of Binance Smart Chain’s.

  • Retention—Since April 14th, Polygon is averaging 34.38% 28d user retention (4.84x final mobile app retention). We define retention as an address making continued transactions in a given week. Below, weekly retention curves show rates are improving as more dapps build on the network.

  • Monetization—Despite the weekly increases in users (+5.91%) and transactions (+2.11%), cost per transaction decreased by a substantial -12.52%. The net result was the first weekly revenue decrease since May 31st, with average daily revenues of 11,325 MATIC ($12,395).


② Near Protocol

👥 Tiffany Gao & Kendall Cole

📈 NEAR tops 10M tx & 375K accounts

👉 Join the Near Community Discord

🤝 Join the NEAR team

  • NEAR is a sharded, Proof-of-Stake public blockchain. NEAR supports smart contracts targeting both WebAssembly (Rust, AssemblyScript) and the EVM (Solidity, Vyper). Several new initiatives and projects were launched on NEAR recently including an Ecosystem Treasury DAO with up to 200M $NEAR, Green NFTs program, and the Skyward price discovery auction platform. The NEAR ecosystem is growing in many areas, and the network hit the mark of 10M total transactions last month.

  • In the recent quarter, new dapps like Mintbase and NFT.hiphop launched, leading to an increase in the number of new accounts. NEAR accounts have been growing at an average MoM rate of 175% and reached 374,656 accounts as of July 7.

  • The first automated market maker (AMM) on NEAR, Ref Finance, saw a large increase in liquidity, volume, and number of pools. Liquidity recently eclipsed $1.6 million, led by the SKYWARD-NEAR pair with over $1 million. The total number of unique pools also grew, reaching 134 total pairs.


③ xDai

👥 Andrew Gross

📈 xDai Surpasses 600K Monthly Active Accounts

👉 Join the xDai community Discord

  • Since 2018, xDai network’s focus on dev tooling, transparency, and sustainability has fostered a progressive community. DAOs, NFTs, games, ExFi (Experimental Finance), and even the Austrian Post are using xDai to scale. Organic adoption is attracting larger projects like Swarm & Curve Finance — it has grown to 600K+ active accounts in the last 30 days and 3M+ wallet addresses. Dark Forest, a first-of-its-kind RTS zero-knowledge game, had 236K+ daily txs by players by July 6.

  • xDai runs on POSDAO PoS consensus. In order to secure the network, validators must stake their STAKE token while delegators stake (‘delegate’) their STAKE to delegate candidates (validators). 66% of STAKE on xDai (660K+) is now allotted to staking, driving the continuation in growth of delegators and stakers.

  • Bridges between xDai, Ethereum, BSC, and ETH testnets let users move Dai, ERC20s, and NFTs (ERC721s & ERC1155s) cross-chain. 11K+ accounts have transferred ERC20s with the Omnibridge and 27K+ accounts have transferred Dai with the xDai bridge.


About the editor: Spencer Noon is General Partner at Variant, a first-check crypto VC fund.

Our Network: Issue #78

Coverage on Stablecoins and Instadapp.

This is issue #78 of the on-chain analytics newsletter that reaches nearly 12k crypto investors every week 📈

About the editor: Spencer Noon is an investor at Variant, a first-check crypto VC fund.

Jump Into Crypto

Grants

🔮 The Graph just launched 43 RFPs for various ecosystem projects. Apply today to receive a grant. (Link)

👻 The Aave community has allocated $1M per quarter to Aave Grants DAO. The program is now live to applicants. (Link)

Careers

💎 Yield Protocol is hiring for a Go To Market Lead. (Link)

⭐ [Redacted Variant Port. Project] is hiring a CMO. (DM me for info)

🌎 Projects are hiring for engineering, community, product, and design roles. Fill out our talent form and I’ll personally do my best to connect the dots. (Link)


This week our contributor analysts cover DeFi: Stablecoins and Instadapp.

① Stablecoins

👥 Anantdeep Parihar and Raghav Behl

📈 Stablecoin Marketcap Crosses $110B

📊 Track Stablecoin Metrics On Dune & CoinGecko

  • Stablecoin marketcap breached $111 billion, as it now makes up 7.7% of the total crypto marketcap. YTD stablecoin marketcap growth is 3.7x, far outpacing the total YTD crypto marketcap growth of 1.9x.

    Breaking that down further, USDT continues to dominate with $62.9B outstanding supply (58.56% market share), while USDC ($25.3B, 23.62%) is not far behind. Algo-stables are also now a sizable category, comprising of ~8% of the total stablecoin marketcap. This has been driven by promising new projects like TerraUSD, Fei, Liquity and Frax, all of whom have experienced explosive growth this year.

  • We have observed a trend where crypto investors tend to flood into stables in the aftermath of market crashes. Driven by the massive crash in May, the combined market share of USDC and USDT reached 7% as a percentage of total crypto marketcap, up from 3%. This was an all time high, surpassing peaks post-Mar ‘20 and post-DeFi summer.

  • Ethereum has the largest piece of the stablecoin pie, with $73.4 billion of the $111 billion outstanding supply issued on its blockchain.

    In terms of protocols:

    • Lending/Borrowing: Aave v2 TVL has $6.73B worth of stablecoins

    • DEX: Curve.fi is a stablecoin dex capturing $3B in stables

    • Yield Aggregator: Yearn has $1.13B of stables on its platform


② Instadapp

👥 Steven 'Seb' Zapata

📈 Instadapp Now #3 In DeFi TVL ($6.51B)

👉 Join The Instadapp Discord

  • Instadapp now has over $6.5B in assets under management and is currently ranked as the 3rd largest dapp by TVL.

  • Instadapp has facilitated more than $12B in flashloan volume; this includes its use in Multi-Protocol Refinancing, Leveraging, Collateral and Debt Swaps. A smaller portion of this volume was 30m of combined assets and liabilities migrating across chain from AAVE v2 to AAVE-Polygon.

  • Instadapp recently launched its own protocol governance token: $INST. As a requirement to receive it, users needed to upgrade their accounts to the latest version. In two weeks, over 30% of all TVL on Instadapp has migrated to the upgraded accounts.


About the editor: Spencer Noon is an investor at Variant, a first-check crypto VC fund.

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