DeFi Rundown, Curve Captures the Long Tail, & Stablecoin Growth

MAY 05, 2021 • 2 Min Read

Ashwath Balakrishnan + 1 other Jeremy Ong Ashwath Balakrishnan

Data Digest

  • Multi-Chain DeFi TVL
  • ETH DeFi Performance YTD
  • Meta Pools Push Curve’s Liquidity Higher
  • DeFi Stablecoins Nearing $10 billion market cap

Key Takeaways

  • DeFi protocols across the top ecosystems — Ethereum, BSC, Solana, Avalanche, Polygon, Terra, etc — crossed $130 billion in cumulative TVL.
  • Ethereum still leads by a long shot, but growth on other L1 ecosystems is now undeniable as they account for 34% of DeFi TVL ($45.3 billion).

Key Takeaways

  • ALPHA, MKR, and UNI are clear market favorites amongst established DeFi projects.
  • SNX, YFI, and REN have been laggards, mostly due to a lack of short to mid term catalysts.

Key Takeaways

  • Curve’s tripool (USDC, USDT, DAI) added over a billion dollars in liquidity in 2021. This is a result of Curve capturing the long tail of stablecoin liquidity through its meta pools.
  • All Curve meta pools are effectively bonded to the tripool. As new stablecoin projects set up Curve meta pools, the tripool’s liquidity rises too.

Key Takeaways

  • DeFi native stablecoins are on the cusp of cumulatively reaching the $10 billion market cap threshold.
  • DAI remains the largest DeFi stablecoin after crossing four billion in circulating supply, but UST continues to show formidable strength and could prove to be a challenger in the mid to long term.

Notable Tweets

Michael Novogratz explains how Dogecoin evolved into a cultural phenomenon.

Uniswap v3 launches on mainnet today — a huge step forward for DEX capital efficiency.

Larry Sukernik, formerly of Digital Currency Group, pens a short piece highlighting the implications of DeFi treasuries starting to unlock their balance sheets.

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Ashwath Balakrishnan + 1 other Jeremy Ong Ashwath Balakrishnan