DeFi Metrics of the Week 12/8

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Dec 08, 2023

The DeFi Bear Market is finally over, and there are plenty of important metrics that you need to be monitoring.

To help, here are our DeFi Metrics of the Week.

The total stablecoin supply is continuing to rally off the bottom, up 0.35% ($450M) from last week.

The total stablecoin market cap now sits at $129B, which was at roughly $123B back in August.

The growing stablecoin supply is definitely a metric to keep an eye on, as it signifies the growing retail interest in crypto.

This recent rally has mostly been led by existing capital, meaning retail participants are still cautious about getting back into crypto.

Total3 is also seeing a healthy rally, up 8% in the past week.

For those who aren't familiar, Total3 measures the current market cap of tokens outside of BTC/ETH.

Total3 is another metric worth keeping an eye on as it signifies the strength and growth of altcoins.

While this has been a mostly major-led rally, it seems likely that we see a rotation to alts within the near future.

Gas prices on Ethereum have also been steadily growing, with on-chain activity finally starting to come back.

ETH has benefitted from this as well, as it is now deflating at a rate of 0.77% per year.

While this isn't great for Ethereum users, it signals a growing demand for ETH block space within the DeFi ecosystem.

Gas is still nowhere near where it was in 2021, meaning we're still in the early stages of an on-chain bull market.

Another metric that we've been closely monitoring is NFT volume, which is back on the rise.

We all remember how big NFTs got back in 2021, and this could mean that it's finally worth watching this market once again.

Even with NFT volume rising, there aren't many ways to get index-wide exposure to this growth.

One interesting bet we've been looking at is Blur, which we recently wrote a report about.

One metric that has caught us off guard is Cardano TVL, which has been steadily growing for the past few months.

This is measured in ADA, meaning that this growth was not solely driven by increasing prices.

While Cardano has been relatively lackluster ever since its initial launch, this growth could warrant a look into the chain's ecosystem.

With no one seemingly talking about it, we'll be monitoring this growth going forward.

Conclusion

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