Research Summary
The report discusses the recent trends in the DeFi sector, focusing on metrics such as stablecoin supply, Total3 market cap, gas prices on Ethereum, NFT volume, and the performance of Mantle. It highlights the potential for growth in the sector and the increasing interest in alternative tokens and NFTs.
Key Takeaways
Stablecoin Supply and Market Cap
- Stablecoin Supply Growth: The total stablecoin supply has seen a slight increase of 0.14% ($181M) over the past week. The total stablecoin market cap now stands at $129.164B, up from approximately $123B in August. This growth indicates new capital flowing into crypto, although it is still far from the 2021 highs.
Total3 Market Cap
- Altcoin Strength: The Total3 market cap, which measures the market cap of tokens outside of Bitcoin and Ethereum, has risen by 9% over the past week. This increase signifies the strength and growth of altcoins, suggesting a potential capital rotation from Bitcoin to altcoins.
Ethereum Gas Prices
- Rising Gas Prices: Gas prices on Ethereum have been steadily increasing due to the resurgence of on-chain activity. As gas prices continue to rise, capital may start rotating to other Layer 1 and Layer 2 solutions, as seen with ecosystems like Solana and Cosmos outperforming.
NFT Volume
- NFT Market Resurgence: NFT volume is showing signs of strength, with attention slowly returning to NFTs. Notably, Bitcoin and Solana NFT volume and mints have seen massive surges in interest, indicating the growth of their respective ecosystems.
Mantle Performance
- Mantle’s Consistent Growth: Despite a lack of attention, Mantle has consistently grown since its release and currently has $133M in Total Value Locked (TVL). This growth may be attributed to yield-bearing tokens like mETH and mUSD and the onboarding of Ondo Finance and their treasury-backed USDY stable coin.
Actionable Insights
- Monitor Stablecoin Supply: The growth in stablecoin supply could indicate new capital inflow into the crypto market. Investors should keep an eye on this metric as a potential indicator of market sentiment.
- Consider the Potential of Altcoins: The rise in the Total3 market cap suggests a growing interest in altcoins. Investors might want to research these tokens as they could present opportunities for diversification.
- Assess Impact of Rising Gas Prices: The increase in Ethereum gas prices could lead to a shift in capital to other Layer 1 and Layer 2 solutions. Investors should consider the potential impact of this trend on their portfolio.
- Track NFT Market Trends: The resurgence in NFT volume, particularly in Bitcoin and Solana, indicates a renewed interest in this sector. Investors should monitor these trends for potential opportunities.
- Explore Under-the-Radar Projects: Despite being overlooked, Mantle has shown consistent growth. Investors might want to explore such under-the-radar projects that could offer potential opportunities.
