Token Terminal

Coinbase's Base is the fastest growing Ethereum L2 at the moment:

Gaming has been a hyped sector for a while in web3. But we haven't seen a breakout game just yet. Immutable X is an Ethereum L2 purpose-built for games. In Q2 their monthly active users grew to over 2.5 million (up over 136,000x) Meanwhile, the price was down 48%. Data: Token Terminal

Agora's AUSD stablecoin is currently the fastest growing stablecoin in the market, based on 7d supply growth.

🎙️A new episode of the Fundamentals podcast is out! In this series, we interview leading crypto investors & operators, and together dive into the details behind the charts available on Token Terminal. This time, we had the pleasure of hosting Sandeep Nailwal & Marc Boiron from Polygon Labs to discuss the AggLayer and Polygon's position within the market. Tune in below!

Coinbase’s Base platform continues to scale Fees 📉 Adoption 📈 Source: Token Terminal

48.4% of assets bridged from Ethereum L1 have been moved to Arbitrum. Speaking of Arbitrum, here's where they rank across the most important KPIs within the L2 ecosystem: 1. Total Value Locked: #1 (Aave #1 driver) 2. Daily active addresses: #1 (the only L2 averaging more than ETH L1) 3. Transactions: #2 (behind Base) 4. Contracts Deployed: #4 (Base leads this category) 5. Token Holders: #1 6. Cost/Tx: #1 (cheapest - averaged about 2 cents/tx in Q2) 7. Fees: #6 (due to cheap tx -- Base leads this category with higher avg. cost/tx) 8. FD Market Cap to TVL: #1 Data: Token Terminal ---- Looking for more data on the Ethereum ecosystem? Check out The ETH Report (77 high-signal charts across 10 different categories). Link in the first comment below 👇 cc: The Arbitrum Foundation

The ETH/BTC chart looks primed for a breakout. Some thoughts on the ETH ETFs — which are set to begin trading on July 23: 1. Flows. I'm expecting flows into the new ETH products to be somewhat proportional to BTC/ETH market caps. ETH is about 32% of BTC today. 2. BTC ETFs have seen about $16b of net flows since launch ($2.6b/month). Reasonable estimates for ETH net flows could be around $850m - $1b/month. 3. Outflows from the ETHE Grayscale Trust. If you recall, the BTC ETF was originally a "sell the news" event. Price dropped post launch due to outflows from the high fee Grayscale Trust when the discount closed to zero post-ETF live trading. It's important to note that the ETHE Trust had its discount close to zero over a month ago -- giving investors plenty of time to close out of their positions. This means ETHE may not see the same "sell the news" event. 4. Rotational flows. As the first crypto ETF, BTC did not benefit from any "rotational flows." It's possible that investors sitting on gains in BTC will rotate into the new ETH products. 5. Reflexivity. ETH is a much more reflexive asset than BTC. This comes back to the amount of ETH held in DeFi, the fact that the network does token buybacks as usage ramps up, and the fact that onchain activity increases as ETH's price rises. Price ---> fees ---> burned ETH ----> price ---> more DeFi activity ---> more fees ---> more burned ETH. BTC does not have this dynamic. 6. Nearly 40% of ETH is held in smart contracts onchain -- making the asset more illiquid than BTC. 7. Narratives. BTC is seen as "digital gold." But ETH can be seen as an "open-source app store that can serve as the infrastructure for global finance." Look for Larry Fink making appearances on CNBC to this point. Furthermore, ETH is a tech play. It has a yield. BTC does not. 8. Speaking of yield -- the early ETH products will not include staking yield. But I expect we'll see those products soon. Why? Issuers will be able to offer a fee-free product while capturing higher fees on the back end via staking. ----- When you add it all up, it looks like the impact of the ETH ETF will be larger than BTC, leading to potential ETH outperformance in the later stages of the cycle. We'll be monitoring the new products and sharing our data-driven analysis via The DeFi Report If you'd like to follow along, see the link in the first comment below. Data: Token Terminal

Total outstanding supply of Tether.io USDT on TON increased by 26% this week and now stands at $730M. In less than 4 months, the network has been able to amass a tremendous amount of stablecoin liquidity. In terms of utilization rates, $619M of the $730M is currently in circulation (85%). To put this into perspective, there is over $1.9B of total outstanding USDT on Solana, with $761M currently in circulation (40%). Moreover, and perhaps just as interesting, the distribution of $TON tokenholders has increased significantly during this time. Prior to integrating USDT in April, there were roughly 12M total TON tokenholders. Today more than 36.4M users hold the token. h/t Token Terminal

It's truly wild how much quality crypto assets have outperformed traditional assets over the last decade. Let's look at ETH vs the Blackrock Target 60/40 Allocation Fund for example. The below data assumes you bought on the date listed and held to 6/30/24: *6/30/17: 60/40 return = 50.6%. ETH return = 26,941% *6/30/18: 60/40 return = 18.5%. ETH return = 676% *6/30/19: 60/40 return = 20.1%. ETH return = 988% *6/30/20: 60/40 return = 16.3%. ETH return = 1,398% *6/30/21: 60/40 return =-4.5%. ETH return = 48.6% *6/30/22: 60/40 return = 16.9%. ETH return = 216.18% *6/30/23: 60/40 return =11.58%. ETH return = 75.8%. ----- In my opinion, investors that have missed these returns have made the following mistakes: 1. Get their opinion about crypto from mainstream news (don't give it an intellectually honest look). 2. Assume that volatility is the same as risk. 3. Do not appreciate the nuance of *quality crypto assets* vs the rest of the pack (most of the space is junk -- which is normal for new innovations). 4. Do not understand the drivers of crypto cycles (the volatility is actually a gift) or the business models. 5. Got an MBA and stopped being curious. ---- We do our best at The DeFi Report to bridge the gap for TradFi investors looking to develop a thesis for crypto assets with a data-driven approach, as well as provide some of the best research in the industry for crypto natives. If you'd like our research dropped into your inbox as it's published, see the first comment below 👇 Data: Blackrock 60/40 Allocation Fund, Token Terminal

Every quarter I spend a few days combing through Ethereum's onchain data and financial performance. Here's the takeaways from the L2 sector in Q2: 1. Active users on L2s are now 6x the L1 with Arbitrum and Base leading the way. 2. ETH fees dropped $679m in Q2, largely due to tech upgrades at the L2 level (EIP4844). Base did more than 2x the fees of any other L2 in the second qtr. 3. L2 fees ended the quarter at 13% of the L1 (down from a peak of 20% in Q4 of last year). 4. Cost of Revenue for L2s dropped off a cliff in Q2 — due to EIP4844 tech upgrade. 5. Onchain margins improved dramatically as a result. 6. Combined transactions on the L2s are now nearly 9x that of ETH L1 (up from 4x last qtr) with Base leading the pack. 7. Cost/tx dropped in Q2 due to EIP4844, with Arbitrum having the cheapest fees at just over 2 cents/tx. 8. In terms of Total Value Locked, Arbitrum has a significant lead amongst the L2s with $3.3b as of 6/30. 9. Contracts Deployed: the L2s combined for 10x that of the L1, with Base dominating developer activity across the sector. 10. Token Holders: OP and ARB dominate investor interest amongst L2s. 11. Valuation: In terms of TVL, Arbitrum is currently the most fairly valued L2. ---- The ETH Report includes 77 charts across the following performance areas: - Operating performance - Token economics - Stablecoins - RWAs - DeFi - Onchain P&L - Valuation - Correlations - ETH vs SOL If you'd like to download a fee copy you can do so via the link in the first comment 👇 Data: powered by Token Terminal