Web3 TVL sees slight dip despite Blast hype

This past week, the total TVL balance across all 219 Web3 ecosystems tracked by the 0xScope team decreased by $392.4M (-0.46%). This is the first time in six weeks that the industry's overall TVL has declined, although the decrease is just small, especially compared to the more than $20B that the sector added in the weeks prior. There are slightly more gainers than losers among the Web3 ecosystems, with 113 of 219 platforms (51.6%) growing their TVLs.

In this edition of the Web3 Hot Trends report, we discuss the latest trends and bright spots across Web3 ecosystems and projects.

Ecosystem TVL Growth

TVL is an essential indicator of how much capital is currently engaged in the decentralized finance (DeFi) space. Here are some key observations from TVL growth data we tracked this week.

1. Tron's TVL loss surpasses Ethereum's gain. As usual, Ethereum leads all TVL gainers with a $239.5M increase, but rival platform Tron's $776.4M loss overshadows the gains made by other platforms, accounting for the slight decline in the entire industry. There's a bit of FUD that happened to Tron this week, after Reuters came out with a story that claimed terrorist groups now prefer using Tron to fund their activities. While this news did not affect $TRON prices this week (+1.5% over the past 7 days), the recent allegations may expose Tron to further regulatory scrutiny.

2. Tezos climbs 22.45% thanks to 2 projects' huge TVL jumps. Tezos added $12.4M to its TVL this week, mainly due to double-digit increases for two Tezos projects: asset creation platform Youves (+70.48% over the past 7 days) and DEX platform QuipuSwap (+63.51%).

3. Terra platforms see TVL resurgence. Terra Classic added $4.8M to its TVL (+264.15%), while Terra2's stored funds increased by 26.08% (+$6.36M). This week, Terra Classic's $LUNC and Terra2's $LUNA rose by 55.7% and 15.4%, respectively. Meanwhile, Terra Classic scored a huge win after Binance launched a perpetual contract for Terra Classic USD ($USTC), formerly known as $UST.

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Project TVL Growth

Diving deeper into the projects’ TVL growth, the 0xScope team spotted positive trends from the projects that stood out this week:

1. Blast's much-hyped launch leads to $281M in additional TVL. Blast, the new Ethereum Layer-2 network from NFT marketplace Blur, has recently locked up $535M in total assets since its November 21 launch, supported by Blur's $107M airdrop of its $BLUR tokens. The network’s future plans involve generating yield through Ethereum ($ETH) and other assets, once its bridge goes live in February 2024.

2. Number of TVL-growing projects decrease by more than half. In contrast to last week, when 58 projects managed to grow their TVLs by at least $10M, including 12 projects with more than $100M in additional locked funds, only 27 projects reached the $10M TVL growth milestone this week, with Blast being the only project that surpassed $100M. It remains to be seen whether this signals the end of Web3's bullish momentum in November or just a quick break from continued growth.

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Project User Growth

Project user growth can offer insights into the adaptability and popularity of specific projects. Here’s what stood out:

1. TinyTap's NFT campaign results in 147,695 new users. TinyTap, the Animoca Brands-owned educational app, recently sold out all 720 of its Season 2 Publisher NFTs, generating $333,907 in earnings for 168 educators. As a result of this campaign, the app has added 147,695 new users.

2. CARV, Element Market show rapid user growth. GameFi platform CARV and NFT marketplace Element had a good week in terms of new users. CARV grew its user base by a whopping 62.99%, with 12,629 new users, while Element added 10,568 new users, marking an even more impressive 109.30% growth.

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Notes:

Users, as defined by 0xScope’s tools, pertain to real users behind addresses, calculated by 0xScope’s proprietary entity and bot recognition algorithm.

TVL stands for total value locked in a project.

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