DeFi platforms see profits among FTX collapse and CEX exodus

Per week following the fallout in the FTX and Alameda chaos, some on-chain data points are interesting to look at. Although record levels of Bitcoin (BTC) and Ether (ETH) are departing the exchanges, not every decentralized applications (DApps) and protocols have proven growth, mainly because of reliance upon FTX and Alameda. 

DeFi earnings highlight positive revenue for many protocols

Based on Token Terminal’s earnings leaderboard, within the last 7 days, three protocols had revenue above $a million. Ethereum brought the on-chain earnings with more than $8.5 million total, an indication of strong publish-Merge fundamentals.

OpenSea would be a distant second spot to Ethereum, earning $1.5 million, while nine protocols and DeFi platforms earned greater than $100,000.

Earnings leaderboard. Source: Token Terminal

Decentralized perpetual exchanges see elevated buying and selling volume

Combined with migration from centralized exchanges (CEXs), the volatile crypto market has users buying and selling in record figures.

Based on data from Token Terminal, the daily buying and selling amount of perpetual exchanges arrived at $5 billion, the greatest daily buying and selling volume because the LUNA and TerraUSD (UST) meltdown in May 2022.

Perpetual exchange volume. Source: Token Terminal

While buying and selling volume elevated, the entire value kept in DeFi lags

Only seven protocols saw a internet rise in their total value locked (TVL) more than a seven-day period. Gains Network, a continuous exchange on Polygon, saw the biggest seven-day increase at 17.3%

TVL sorted climbing down from 7-day. Source: Token Terminal

One interchain operability protocol, Ren, observed a TVL drop of fiftyPercent within the last week. Reported by Cointelegraph, Ren partnered carefully with Alameda, receiving quarterly funding and keeping its treasury on FTX. The protocol itself taken advantage of Alameda’s locked liquidity so that they can improve interoperability.

Ren TVL. Source: Token Terminal

Data also implies that blockchain revenues are rising among a continuing rate of daily active users. Major blockchains saw a rise well over 300% in daily revenue in comparison with previous days.

Simultaneously, daily active users continued to be steady at a million. The dichotomy between these data points shows that transactions are happening in a more frequent pace among existing users.

Blockchain revenue and daily active users. Source: Token Terminal

Related: FTX collapse adopted by an uptick in stablecoin inflows and DEX activity

Blockchain revenues don’t always equal earnings

While blockchains saw a rise in revenue,s that is likely mainly because of token emissions, only Ethereum saw positive earnings. Proof-of-stake (PoS) blockchains like Polygon, BNB Smart Chain and Optimism all recorded negative earnings. When PoS blockchains have negative earnings, holders from the tokens are hit with inflationary losses.

Blockchain earnings. Source: Token Terminal

On-chain data is constantly on the exhibit strengths with elevated activity on decentralized perpetual buying and selling platforms and positive revenue for DeFi protocols. Despite the fact that CEX outflows were historic, daily active DeFi users didn’t increase, but the truth that they continued to be consistent is notable. Exactly the same data also highlighted lagging blockchain earnings (aside from Ethereum) and home loan business TVL.

The views and opinions expressed listed here are exclusively individuals from the author and don’t always reflect the views of Every investment and buying and selling move involves risk, you need to conduct your personal research when making the decision.

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