Analyst | Produced by Carol | PANews
In the third quarter of this year, the eyes of the entire market have never left DeFi. Yield Farming not only promotes the rapid development of lending products, but also promotes the rapid development of other sub-formats such as AMM DEX (automated market making), stable coins, and synthetic assets. Driven by multiple carriages, DeFi is beginning to form an inward loop. Benefiting from the boom in the DeFi market, according to CoinMarketCap data, the market size of digital currencies in the third quarter rose from $260.093 billion on July 1 to $340.484 billion, an increase of nearly 40%.
In order to show the specific performance of each digital currency and new market trends in the frenetic “farming era”, PAData conducted the third TOP 30 series of observations this year (TOP 30 refers to the top 30 digital currencies by market value, hereinafter referred to as TOP 30) , The observation period is from July 1 to September 27. According to analysis, the TOP 30 currency prices in the third quarter rose by over 47% on average, and the quarterly currency holding income range expanded by 46% year-on-year. However, the total market value declined slightly, and the daily average currency price volatility has risen to more than 7%. You need to be alert to risks. YFI became the best performing asset in the third quarter.
PAData Insights:
- The total market value of the TOP 30 in the third quarter rose by about 19.74%.
- Except stablecoins, the price of other digital currencies rose by about 47.08%, continuing the upward trend in the second quarter.
- YFI was the best-performing asset in the third quarter, and its currency price increased approximately 28 times.
- The daily average volatility of currency prices rebounded from 5.57% in Q2 to 8.28%, which is closer to Q1 this year.
- In the third quarter, the average value of investors’ currency holding income range was about 111%, an increase of 46% year-on-year.
- The market value of 18 pan-DeFi tokens entered the top 100, and “Lego” promoted the internal circulation of the DeFi concept currency.
DOT/YFI/WBTC new synthetic assets worthy of attention
In the third quarter, there were 3 new assets, including the native token DOT of the public chain Polkacot, the governance token YFI of the yearn.finance product of Jurong Financial, and the synthetic asset WBTC. Although from the perspective of asset rotation, the market activity in the third quarter was the same as that in the first half of the year, and there were three new assets, but it is worth noting that the previous new assets were mainly “old people” who had entered the TOP 30. , And the three newly promoted assets in the third quarter all entered the TOP 30 for the first time, which shows the rapid development of new themes in the market.
From the perspective of market value ranking changes, the public chain that performed well in the second quarter was robbed of the “showcase” by the DeFi concept currency in the third quarter. The market value rankings of LEND, DAI, YFI and WBTC all rose by more than 15 places. Among them, the market value of LEND rose from 44 in the previous quarter to 28 in the third quarter, DAI rose from 54 in the previous quarter to 26 in the third quarter, and YFI and WBTC were newly promoted to rank 24 and 25. In addition, last quarter’s newly promoted DeFi concept currency COMP only ranked 44th this quarter, down 17 places, which reflects the speed of replacement of new themes. The much-watched Uniswap governance token UNI ranks only 39.
From the perspective of the types of digital currencies with the market value of TOP 30, DeFi tokens have also occupied a place in the market, with a wide range of tokens including stablecoins, loan product governance tokens, DEX governance tokens, synthetic assets, etc. Divided, in the third quarter, in addition to USDT, USDC, DAI, YFI, LEND, WBTC, LINK entering the TOP 30 market capitalization, there are UMA, SNX, MKR, UNI, COMP, ZRX, LRC, KNC, BAND within the TOP 100 market capitalization. , YFII, BAL and other 11 assets are listed.
Among them, with the development of DeFi, Bitcoin and large-scale traditional assets will be more and more introduced into the DeFi ecosystem in the future, and synthetic assets may receive more attention as a new theme.
In addition, since the beginning of this year, the pattern of platform currencies and stable currencies has been basically stable. BNB, LEO, and HT have formed the first echelon of platform currencies. USDT and USDC in stable currencies continue to be issued, and their positions in the market are becoming more stable.
DeFi “Lego” promotes the positive cycle of DeFi concept coins
The collective rise of the DeFi concept currency not only benefits from the recent innovation of DeFi products itself, but also benefits from the composability of DeFi products, which makes the DeFi concept currency form a positive inward loop in the hot market.
For example, the “central bank” Maker of Ethereum DeFi has generated stable currency DAI outside the 50th place since the second half of last year. However, with the enrichment of other products in the DeFi field this year, the circulation of DAI has further increased. According to data from Etherescan, 5 of the 10 addresses currently holding the most DAI are DeFi platforms, including Uniswap, Balancer, yearn.finance, Curve and Aave. And from the perspective of balance change trends, the DAI balances of these platforms have risen rapidly since mid-to-late August. From a time perspective, this basically coincides with the opening of DAI mining.
There are also synthetic assets that have also benefited, such as WBTC, which “migrated” BTC to Ethereum. According to data from Etherescan, 8 of the 10 addresses currently holding the most WBTC are DeFi products, including Uniswap, Maker, Curve, Compound, etc. Judging from the balance trend of each platform, with the exception of Maker’s earlier acceptance of WBTC as collateral, the balance growth of other platforms mainly occurred after mid-September, which also coincides with the opening time of the DeFi fund pool.
The market value has increased significantly, TOP 30 has increased by more than 40% on average
In the third quarter, the market value of TOP 30 continued to grow. It rose from US$262.9 billion in July to US$314.8 billion in September, an increase of approximately 19.74%, lower than the 29.81% in the second quarter. Among them, the market value of TOP 30 in August increased by 26.97% from the previous month, which was the month with the strongest upward momentum in the market in the third quarter.
From the perspective of the market value increase of each digital currency, YFI has the highest market value increase in the third quarter, which rose from US$4.4187 million at the beginning of its launch on July 20 to US$949 million on September 26, which is equivalent to a 214-fold increase. In addition, the market value of WBTC and DAI have also increased significantly higher than other assets. The market value of WBTC also increased by 1630.88%, which is equivalent to a 17-fold increase. As of September 26, its market value was approximately US$932 million. DAI’s market value increased by approximately 626.29%, which is equivalent to a 7-fold increase. As of September 26, its market value was approximately US$933 million.
In addition, the market value of LEND, XEM, USDC, LINK, and NEO all increased by more than 100% in the third quarter. Among them, it is worth noting that USDC continued to “print money” in large numbers, with its market value increasing by 35% last quarter and 173.30% this quarter. There are also 4 digital currencies that have negative growth in market value in the third quarter, namely DOT, XTZ, LEO and BCH. Except for DOT’s market value shrinking by nearly 30%, the market value of the other 3 digital currencies has not fallen much.
In view of the large dispersion of the market value of each digital currency, the median is used to measure the overall average level. According to statistics, in the third quarter, the median increase in the market value of the TOP 30 digital currencies was about 40.31%, which was lower than the average of 47.57% in the second quarter.
The growth rate of the currency price is the same year-on-year
In the third quarter, YFI was the asset with the best earnings. The currency price rose from US$1,118.17 on July 1 to US$31679.70 on September 26, which is equivalent to a 28-fold increase. It not only completed the slogan 1YFI≈1BTC, but also exceeded the value. Achieved 1YFI≈3BTC. In addition, LEND, XEM, LINK and NEO also saw higher price increases in the third quarter. Among them, LEND’s price increase was about 292.82%, second only to YFI. In addition, although XEM and NEO do not have any major benefits from the news of their respective public chain development, their currency prices have also increased by more than 100%.
Compared with the popularity of DeFi concept coins, BTC and ETH have performed relatively steadily. The overall price increase of BTC in the third quarter is about 16.54%, and the increase of ETH is about 53.59%, both of which have declined from the previous quarter.
In addition, the currency prices of XTZ, BCH, LEO and ADA fell slightly in the third quarter, with XTZ falling the most, close to 10%. In the first half of the year, the currency price of XTZ continued to rise. Judging from the staking pledge rate and the number of active addresses on the chain, XTZ has not had a turning point in the near future. The currency price fell this quarter or it is a callback.
Regardless of stablecoin and YFI, the average price increase of the TOP 30 currency in the third quarter was about 47.08%, which was basically the same as the 49.88% in the previous quarter. The market as a whole is still in an upward phase. However, it should be noted that the daily average currency price volatility of the TOP 30 digital currencies in this quarter rose to 8.28%, higher than the 5.57% under the unilateral upward trend in the second quarter, and slightly lower than the 8.66% during the adjustment period in the first quarter. People need to be alert to market changes.
From the perspective of the volatility of various digital currencies, the high-yield YFI also showed high risks. The average daily currency price volatility in the third quarter reached 30.22%, which was much higher than other assets. Secondly, DOT, LEND, LINK, VET, and ATOM also showed high risk, and the daily average volatility of currency prices exceeded 10%. In the third quarter, the average daily volatility of currency prices was low in LEO, and HT, which did not exceed 4%, which was relatively stable.
Currency prices rose and volatility rose. In this market environment, the range of returns for investors holding currencies in the third quarter expanded from a month-on-month basis. According to statistics, in the second quarter, the average value of the income range of investors holding currency was about 76%, and it expanded to about 111% in the third quarter, an increase of about 46%. However, compared with the 148% in the first quarter, the expansion of the average income range in the third quarter still did not change the downward trend for the year.
Judging from the distribution of the positive and negative income ranges, in the third quarter, the negative income range of each digital currency holdings was much smaller than the positive income range. This shows that theoretically, the probability of investors earning income from holding coins in the third quarter is still high.
YFI has the largest positive return range of currency holdings, which is about 4079.77%, which is equivalent to a 41-fold increase. At the same time, YFI has the largest negative return range, reaching 29.56%. Secondly, LEND’s currency holding positive income range has reached 572.45%, LINK’s currency holding positive income range has also reached 334.35%, but the negative return range of these two assets are only 3.35% and 0.88% respectively.
Even if you hold stablecoins in the third quarter, it is possible to obtain benefits from market premiums. The positive income ranges of USDT, USDC and DAI are about 6%, 4%, and 14%, respectively. Currency holdings are even better than the performance of many traditional funds.
