LINK, UNI, CRV, etc. collectively counterattack, and the amount of locked positions continues to rise
In the third week of 2021, Bitcoin seems to have started a turbulent trend, dropping to the lowest level of $30,000. Although the market has subsequently rebounded several times, and Bitcoin once returned to $40,000, the wide-ranging market seems to be accompanied by the strengthening of the US dollar index and has become the main trend in the near future.
On the other hand, the DeFi sector ushered in a collective strengthening this week. Many DeFi projects, including Link, Uni and Aave, all have good gains. With the overall strength of the sector, the total market value of DeFi projects also exceeded US$35 billion for the first time.
Data on the chain
Bitcoin's weekly transaction volume was 13.2215 million BTC, a decrease of 13.32% from the previous month; while the on-chain transaction volume of Ethereum reached 31.155 million ETH, a decrease of 13.23% from the previous month.
After excluding the influence of duplicate data, the actual transaction volume on the Bitcoin chain in a single week was 4.2026 million BTC, a decrease of 14.1% from the previous month.
Although Bitcoin has fallen in the past week, the transaction volume on the chain does not seem to fluctuate sharply: there has been neither a sharp rise nor a significant decline, and the overall remains within a relatively normal range.
At the same time, the number of large transactions on the chain did not experience the huge fluctuations of November 3, which may mean that despite the recent market turmoil, most wallets still tend to hold coins.
Miner income
As the popularity of on-chain transactions decreases, the first thing that affects is the income of miners. And because the transaction fees on Ethereum already account for a considerable proportion of the income of miners, when the popularity of on-chain transactions dissipates, the income of Ethereum miners may decline faster:
Last week, Bitcoin miners' revenue was 7,350 BTC, or about 269 million U.S. dollars, a decrease of 5.28% from the previous month; Ethereum's miners’ revenue was 148,300 ETH, or about 173 million U.S. dollars, a decrease of 8.99% from the previous month.
DeFi
With the continuation of Bitcoin's shock trend, we have seen more plate rotations and hotspot switching this week, and the DeFi sector is the leader. "Classical DeFi" such as Maker, Compound and Uni rose collectively, and "rising stars" such as Crv and Yfi also saw larger gains. This increase is not only reflected in the price, but also reflected in the on-chain data of the DeFi protocol.
Taking the head project Uniswap as an example, after the liquidity mining ended, Uniswap's lock-up amount once dropped to a 90-day low of 1.6 billion US dollars, and its token Uni price also fell below 2 US dollars.
Since mid-December, Uniswap's lock-up volume has begun to rebound, and has returned to the $3 billion mark in the near future; the price of the token Uni has also continued to rise from a low level, and the increase and trend are more obvious than Uniswap's lock-up volume. ’S association.
Curve is similar to Uni. Curve's lock-up volume dropped to a 90-day minimum of US$815 million on October 26. During the same period, the market value of Crv also fell to US$34.4 million, and the price of its token Crv fell to US$0.32. After the end of October, the locked position of Curve continued to rise, and the price of Crv also rose to $1.6. The correlation between locked position and market value & price was once again confirmed. On the whole, as Bitcoin begins to fluctuate, the focus of the market seems to begin to focus on more other sectors. The rotation of funds and sectors may promote concepts including DeFi, public chains, and all potential topics, and present a certain "altcoin season" characteristics.
At present, this trend is still continuing. At least for DeFi projects, the amount of locked positions is still at a historical high. We can also continue to pay attention to the changes in the amount of locked positions on the chain, and make timely responses when the amount of locked positions drops sharply.