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Difai Weekly Report; The culmination of second layer projects in the Ethereum


Last week was an important week for Defy; Because of the news of Visa’s readiness to create a global inter-chain payment solution. Such positive signs of the acceptance of digital currencies and the domain of defy in the global economy are promising, but at the same time raise the question of whether Ethereum, as the largest platform of diff, will be able to maintain its position as the most popular decentralized and uncensored platform. Will it cede to big giants like Visa?

What may be more interesting is that a number of financial institutions use existing diff protocols to enter the field instead of building their own infrastructure, and like ordinary diff users, make proposals and participate in the governance system. . In fact, risk-taking and forward-looking institutions play in the field of defense to enter the field of defense and do not build their own infrastructure. The entry of these institutions will lead to further growth in the field of defense, and this growth can be clearly seen in the criteria related to defense. Then with the help of articles from websites Coin 98 And Defy Rate, We will examine the growth of these criteria.

Of course, the Difai field may not be ready for large financial institutions to enter the field yet. For example, in the last month, a number of Difai protocols, including Ethereum competitors and Ethereum Layer 2 solutions, faced challenges and even the Solana network was shut down for a while. Contrary to the ideals of decentralization and immutability in the Blockchain. However, all technologies and innovations have been challenging in their development, and this is normal for protocols that are less than a few years old, as is the case for a powerful platform like Ethereum. The Dao Hack is an example of this in the early years of Ethereum.

With the expansion of the competitive environment over scalability improvements and the growing demand of users for faster transactions, malicious actors and hackers have also found more opportunities to exploit this situation, while developers have limited resources to work on ensuring network security. The creation and growth of second tier solutions has also created newer challenges and made it more difficult to secure defy platforms. The solution to delays in withdrawing assets from second tier platforms may be helpful, but hackers are also very patient and can wait months or years to withdraw victims’ assets.

Paligan on the path of growth

With all these attributes and problems mentioned, the Difai group community is flexible and intelligent, and with the cash flow that enters the Difai sphere, it can be expected that the security of the Difai sphere will also improve. In this regard, Paligan, a second-tier solution for improving the scalability of the Ethereum, is at the forefront and seriously offers incentives to combat the misuse of undetected bugs.

This development in Paligan’s development and the growing demand for a scalable solution led to the first time this week that the number of daily active addresses of Paligan exceeded Ethereum. Other projects, such as Olench and Optimism, which focus on improving scalability, have grown significantly and are expected to increase their number of active addresses in the coming weeks and months.

Difai Weekly Report
(Chart of addresses of Paligan and Ethereum)

The number of Paligan wallets has now reached 91 million units, so the gap between the number of Paligan wallets and Bainance Smart China has reached only 6 million units.

Difai Weekly Report
(Ethereum, Bainance Smart China and Paligan address charts)

At present, the growth rate of the number of Paligan addresses is about 1.3 million new addresses per day, and with this growth rate, it is expected that in the next two weeks, Paligan will surpass China’s Bainance Smart.

Difai Weekly Report
(Chart of new addresses of Ethereum, Bainance Smart China and Paligan)

Locked Assets (TVL) in Paligan have fallen relatively to $ 4.8 billion after peaking at $ 6 billion last week. Lending platforms and assets are the two sectors that account for the largest amount of locked assets, and decentralized exchanges are next.

Difai Weekly Report
(TVL Paligan diagram)

As the market fuss over protocols for scalability solutions and the initial liquidity accumulation by these projects has subsided, it is now time to commercialize brands, attract credible participants, integrate with strong platforms, and increase the security of your project. Due to the overwhelming response of investors to this area, we will slowly see the growth and flourishing of second tier protocols and projects. It is hoped that with the expansion of the decentralized shareholder community, these protocols will eventually move out of the hands of particular investors and we will see more decentralization than they do today.

Lending protocols; The main growth factor of TVL

As mentioned earlier, lending and asset protocols are more attractive to traders than decentralized exchanges.

Difai Weekly Report
(TVL diagram of lending protocols)

Over the past week, the top three lending protocols, Maker Dao, Aave v2, and Compound, have seen their asset levels lock down in their ecosystem. The compound platform, meanwhile, has suffered the most capital loss, losing $ 80 million. This happened because of the compound reward feature. It is interesting to know that the Compound platform considers amounts of COMP currency as a reward for its users for each transaction, deposit, withdrawal and collateral made by its traders. As a result, $ 80 million in assets locked in the compound were withdrawn from the protocol, reducing its capital by 12.85%.

The Anchor Protocol, on the other hand, with $ 3 billion in locked-in assets, managed to pull fourth out of the hands of another powerful protocol, Venus, to continue its uptrend.

It is worth noting that the Parrot Lending Protocol, which operates on the basis of the Solana blockchain, is currently in the capital accumulation phase and will have significant growth potential. The protocol currently covers $ 350 million to $ 400 million in locked-in assets and is likely to be of interest to investors in the not-too-distant future.

Difai Weekly Report
(Ethereum TVL chart)

Last week, total assets locked in the Ethereum blockchain crossed the $ 100 billion mark, but this week it began to decline, reaching $ 93.7 billion. However, lending protocols continue to be strong in the Ethereum Blockchainchain, accounting for 39.56% of the bulk of this ecosystem.

Decentralized exchanges also performed better than last week, accounting for 31.31 percent of total locked assets, up 5.16 percent.

Difai Weekly Report
(TVL Bainance Smart China Chart)

Defy in other blockchains

Assets locked in China’s Bainance Smart also fell to $ 23.1 billion. Of course, lending protocols were successful in the fundraising process, and this week they were able to increase their share of the Bainance smart chain market to 25% with a growth of 2.79%.

On the other side of the market, the ecosystem of decentralized exchanges was not very prosperous. The 11.57% drop in market value in China’s Bainance Smart caused the protocol to experience a significant decline from its 60.72% dominance in the Bainance chain, to only 58.04% of market dominance.

Also, in the past week, the asset and derivatives markets did not experience significant fluctuations and continued their stabilizing trend.

Difai Weekly Report
(TVL Paligan diagram)

Lending and asset protocols in the Paligan ecosystem have been two popular sectors for cash flow and capital attraction. With total assets locked in Paligan reaching $ 6 billion last week, the value of these assets fell sharply this week to $ 4.8 billion. It should be noted that the decentralized exchanges in this block of China had the least attention to capital inflows by traders.

Difai Weekly Report
(TVL Solana chart)

Solana’s blockchain also fell this week. According to statistics from two weeks ago, the assets locked in this Blockchain were worth $ 12.4 billion, which has now reached $ 8.2 billion. In addition, the share of decentralized exchanges is 69.8% of this market. Also, the share of assets in the Solana blockchain, with a downward trend and a decrease of 6.79%, now includes 19.58% of the total locked assets.

Difai Weekly Report
(TVL Olench chart)

Total assets locked in the Blockchain reached a new high, reaching $ 3.7 billion, up 15.75% from last week. The leading and flagship part of the Blockchain is decentralized exchanges in terms of value of locked assets, with 43.71%. Lending protocols also came in second with a 41.23% stake in the Olinch Blockchain.

Conclusion

It is very important to pay attention to this point; The defense industry or decentralized finance industry is very young and fledgling. Entering this market will make you one of the first people to enter this field and as the pioneers of the world of digital currencies have contributed to the growth and maturity of this industry.

Therefore, your full awareness and responsibility for the capital you inject into this market is essential. As explained in detail in this article, in recent weeks the amount of capital available in the defense market and the financial flow of this ecosystem have been better. Among the attractive sectors that have still been able to be favorable for investment, we can name lending protocols and decentralized exchanges, which are also shown in the diagrams in this article. Due to the fluctuations in the amount of capital affected by the top protocols in this field, including Micro, Avi and Compound, the assets locked in the blockchain ecosystem of Ethereum, Bains Smart China, Paligan and Solana have shown acceptable performance in terms of lending. Although the digital currency market cycle and the volatile realm of defai are constantly changing, the overall trend in the financial market is nevertheless moving towards decentralization.

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