LD Capital Track Weekly Report (10.30) Market Sentiment Bullish

LD Capital Track Weekly Report (10.30) Shows Bullish Market Sentiment

[Summary]

DeFi Lending: With the improvement in the overall market conditions, the lending sector has been extremely active.

LSD: Last week, the staking rate for ETH increased to 23.28%, a growth of 0.26% compared to the previous period. There were 28 million ETH locked in the beacon chain, corresponding to a staking rate of 23.28%, with a growth of 0.26% compared to the previous period; among them, there were 866,300 active validation nodes, a growth of 0.21% compared to the previous period.

Ethereum L2: The total value locked in Layer2 reached $11.89 billion, with a 7.20% increase in TVL over the past 7 days. The Ethereum 173rd ACDE meeting was held on October 26th, providing updates on the progress and timeline of the Cancun upgrade, which is expected to take place in 2024.

DEX: The combined TVL of DEX is 11.56 billion, adding 600 million compared to the previous week. The 24-hour trading volume of DEX is 1.45 billion, with a 7-day trading volume of 19 billion, an increase of 7 billion compared to the previous week.

• LianGuaiWeb3.0 Daily | HashKey announces upcoming issuance of ERC-20 platform token HSK
• Rush to issue cards, the business secrets behind encrypted payment cards
• Cointelegraph Accelerator: Breaking Boundaries in the Web3 World

Derivative DEX: BTC broke through the annual high of 31,500 in mid-October, reaching a new high near 35,500 for the year, and has since been fluctuating between 33,500 and 35,500. This breakthrough has led to a surge in market bullish sentiment, with significant increases in open positions and trading volumes.

[DeFi Lending]

Aave

The Aave community has initiated a new proposal suggesting collaboration between Aave DAO and TokenLogic to develop various smart bridging contracts for Avalanche, Optimism, and Arbitrum to cross-chain to Ethereum. Once these contracts are created, they will become public products within the Aave ecosystem. This means that any participant will be able to draft payloads and transfer DAO funds between different networks.

Once the bridging contract from Avalanche to Ethereum is completed, TokenLogic intends to propose the migration of funds to the Ethereum treasury to support the continuous financial stability of the DAO.

The Aave whale address 0x355e has accumulated around 153,000 tokens withdrawn from Binance since October 23rd, and currently holds a total of around 237,000 AAVE tokens, making it the largest individual address holder of AAVE. The initial AAVE accumulation in this address was in January this year, with a comprehensive cost of around $70.

Galaxy Digital appears to be long on BTC and ETH in Aave and Compound. On October 28th, Galaxy Digital deposited a total of 4,168 WBTC (worth $142 million) and 16,000 ETH (worth $28.6 million) to Aave and Compound, and borrowed 71.6 million USDT and 21.9 million USDC.

Liquity

The Liquity stablecoin LUSD has been launched on Starknet, and this integration is currently in the alpha stage with a collateral deposit limit of 0.2 ETH, which will be lifted over time.

In the past week, LQTY experienced significant price fluctuations, rising from $1.47 to $2.22, an increase of over 50%. However, with DWF withdrawing 1.27 million LQTY from the collateral pool and transferring 100,000 LQTY to Gate, the uptrend in LQTY ended, and the price dropped from $2.22 to $1.79.

MakerDAO

A whale address starting with 0x8af withdrew a total of 4077 MKR (equivalent to $5.88 million) from Bitget at an average price of $1442 on October 29. The whale then deposited these MKR into Aave and borrowed 1.84 million USDC. They later exchanged the USDC for DAI and deposited it into MakerDAO, where the current DAI Savings Rate (DSR) is 5%.

In the past 7 days, FalconX deposited a total of 9085 MKR (equivalent to $12.8 million) into OKX and Binance, and currently holds 7261 MKR (equivalent to $10 million).

【LSD】

Last week, the ETH staking ratio rose to 23.28%, an increase of 0.26% compared to the previous period. There were 28 million ETH locked in the Beacon Chain last week, corresponding to a staking ratio of 23.28%, an increase of 0.26% compared to the previous period. Among them, there were 866,300 active validating nodes, a 0.21% increase compared to the previous period. This week, the ETH staking yield rebounded to 3.61%. The on-chain Meme market is picking up, with Uniswap and BananaGun being the applications that consumed the most gas in the past week. The ETH annual inflation rate has decreased to 0.04%.

This week, the ETH staking yield rebounded to 3.52%.

This week, the ETH annual inflation rate is 0.035%.

Among the three major LSD protocols, in terms of price performance, LDO increased by 4.4% in the past week, RPL increased by 17.2%, and FXS increased by 10.5%. In terms of ETH staking volume, in the past week, Lido decreased by 0.35%, Rocket Pool increased by 1.07%, and Frax increased by 1.75%. Last week, ETH price increased by 5.8%. The mechanism design of RPL as collateral in Rocket Pool fundamentally anchors the price of RPL to ETH to a certain extent. In addition, factors such as insufficient effective collateral, increase in total value locked (TVL), small market capitalization, and poor liquidity contributed to a significant price increase. Currently, the Rocket Pool deposit pool balance is 19,272 ETH, with an RPL staking ratio of 50.79% and an effective staking rate of 91.81%. FXB is currently in the testnet phase. Attention is also focused on the open redemption of frxETH and the halving of FXS emissions. Currently, the sFRAX scale is 42.96 million, with a yield of 6.37%.

【Ethereum L2】

TVL

The total TVL on Layer2 is $11.89 billion, with an overall increase of 7.20% in the past 7 days.

CanCun Upgrade

On October 26th, the 173rd ACDE meeting of Ethereum was held, which provided updates on the progress and timeline of the Cancun upgrade. The mainnet upgrade is expected to take place in 2024.

(1) Devnet10: Developers launched Devnet-10 on October 23rd to test the Cancun/Deneb upgrade. The development network created 330,000 active validators to trigger changes in validator churn limit.

(2) Deneb Test Schedule: The activation of Deneb upgrade on Goerli is scheduled for the end of November at the earliest. Historically, Ethereum’s testnet activation interval for upgrades is two weeks. For example, if Decun is activated on Goerli on November 22nd, the subsequent testnet upgrades on Sepolia and Holesky will take place in early December and mid-December respectively.

Tim Beiko pointed out that even with the most ideal timeline, the mainnet activation of Decun would likely be postponed to the holiday season in late December. It is most likely that developers will delay the mainnet activation of Deneb upgrade until early 2024.

(3) The meeting also discussed development details such as the simplification of Deneb, EIP7523, KZG ceremony verification, and Layer 2 standardization.

OP

On October 30th at 12:00, Optimism (OP) will unlock 24.16 million tokens (approximately $34.31 million), accounting for 2.74% of the circulating supply.

ARB

Blockworks Research has initiated a community proposal on Arbitrum, planning to establish the Arbitrum Alliance led by Blockworks Research, Gauntlet, and Trail of Bits. The alliance is set to last for 12 months and aims to help Arbitrum DAO members turn their ideas into reality. The total cost of the one-year alliance will be based on the 30-day VWAP price of ARB the day before the on-chain proposal, estimated to be around 2.2 million ARB. One-fourth of the funds will be pre-paid to each alliance member 91 days after AIP execution, while the remaining three-fourths will be paid incrementally within 274 days. The flow of funds will be under the control of the DAO and can be cut off at any time through an on-chain DAO proposal.

On-Chain Activity

【DEX】

Total value locked (TVL) in DEX has reached 11.56 billion, increasing by 600 million compared to the previous week. The 24-hour trading volume of DEX is 1.45 billion, and the 7-day trading volume is 19 billion, increasing by 7 billion compared to the previous week.

Ethereum

ETH L2/sidechain

BTC L2/Sidechain

Due to the rise in BTC price, BTC L2 Stacks ecosystem DEX ALEX has shown significant growth in TVL over the past 7 days (+62%).

Alt L1

【Derivative DEX】

BTC broke through the annual high of 31,500 in mid-October, reaching a new high of around 35,500 for the year. Since then, it has been oscillating between 33,500 and 35,500. This breakthrough has led to a surge in bullish sentiment in the market, with both open interest and trading volume showing significant growth.

The current contract open interest is $30.3 billion, reaching the yearly high of 2023 and approaching the open interest level between the recovery of 2022 and the FTX incident. The market has undergone nearly a year of repair.

The trading volume on October 23rd and 24th exceeded $150 billion, which is a relatively high level for the year 2023. It has since declined, but compared to August and September, the trading volume is nearly double.

Derivative DEX trading volume has also seen significant recovery. DYDX had a daily trading volume of around $2 billion on October 23rd and 24th, and has remained around $1 billion in the following days; fund pool-based derivative DEX also had a total daily trading volume of around $2 billion during the peak period. DYDX accounted for approximately 50% of the market share in terms of trading volume, followed by GMX, Kwenta, ApolloX, Vertex, HMX, and other protocols.

The user count of Derivative DEX has also recovered. During the trading peak, GMX had a daily active user count of 2,500, which has dropped to around 1,000; Vertex/ApolloX had around 500 users; other protocols had between 300 and 500 users. DYDX had a weekly active user count of 3,700. In terms of user count, DYDX and GMX still have the most active user base.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!