Research Summary
The report discusses key metrics in the Decentralized Finance (DeFi) sector, including the growth of the stablecoin supply, the rally of Total3, the increase in Ethereum gas prices, the rise in Non-Fungible Token (NFT) volume, and the unexpected growth of Cardano’s Total Value Locked (TVL).
Key Takeaways
Stablecoin Supply Growth
- Stablecoin Supply Rally: The report highlights a 0.35% ($450M) increase in the total stablecoin supply from the previous week, with the total market cap now at $129B. This growth, up from $123B in August, indicates a growing retail interest in crypto.
Total3 Rally
- Altcoin Strength Indicator: Total3, a metric that measures the market cap of tokens outside of Bitcoin and Ethereum, has seen an 8% rally in the past week. This suggests a strengthening and growth of altcoins, with a potential rotation to alts in the near future.
Ethereum Gas Prices
- Increasing Demand for ETH Block Space: Ethereum gas prices have been steadily growing, indicating a resurgence of on-chain activity and a growing demand for ETH block space within the DeFi ecosystem. Ethereum is now deflating at a rate of 0.77% per year.
NFT Volume
- Resurgence of NFT Market: The report notes a rise in NFT volume, suggesting a potential resurgence of interest in this market, reminiscent of the NFT boom in 2021.
Cardano TVL
- Unexpected Growth in Cardano: The report points out the steady growth of Cardano’s Total Value Locked (TVL), measured in ADA, over the past few months. This growth, which was not solely driven by increasing prices, suggests potential opportunities within the Cardano ecosystem.
Actionable Insights
- Monitor Stablecoin Supply: The growth in stablecoin supply indicates increasing retail interest in crypto. Keeping an eye on this metric could provide insights into market trends.
- Watch Total3: The rally in Total3 suggests strengthening altcoins. Monitoring this metric could help understand the dynamics of the altcoin market.
- Track Ethereum Gas Prices: The rise in Ethereum gas prices indicates growing demand for ETH block space. Tracking this could provide insights into the DeFi ecosystem’s activity.
- Observe NFT Volume: The rise in NFT volume suggests a potential resurgence of this market. Observing this trend could provide insights into the NFT market’s performance.
- Investigate Cardano’s Growth: The unexpected growth in Cardano’s TVL suggests potential opportunities within its ecosystem. Investigating this growth could provide insights into the platform’s performance and potential.
