The blockchain ecosystem is a treasure trove of open data. It allows anyone to track and analyze capital movements, ecosystem growth, and project performance. This on-chain data, helps both seasoned and new investors identify trends and opportunities in the crypto market. Here’s a deep dive into recent capital flows with data from OKX Ventures! 

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What is On-Chain Data?

On-chain data refers to all the information recorded and publicly accessible on a blockchain. Unlike traditional systems, where most financial or transactional data is kept private, blockchains operate as open ledgers. Every transaction, token transfer, smart contract interaction, or block validation is permanently logged, ensuring transparency. By analyzing this data, one can observe how capital flows between different blockchain ecosystems and identify where growth or stagnation is occurring. 

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Capital Inflows and Outflows: Where the Money is Going

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Recent data from OKX Ventures, as of November 18, 2024, highlights significant capital movements across blockchains:

• Short-Term (7-Day) Leaders:
  • Base: $214.8M net inflow
  • Arbitrum: $157M net inflow
  • Solana: $109.1M net inflow
  • StarkNet: $43.7M net inflow
  • Sui: $30.9M net inflow

These figures represent the amount of new money entering each network. This is a positive signal of user interest and investor confidence. Base, for instance, has rapidly become a favorite for developers and traders alike. 

• Long-Term (180-Day) Champions:
  • Solana: $1.2B inflow
  • Base: $981.4M inflow
  • Sui: $384.9M inflow

Looking at it from a longer-term perspective, Solana is undeniably the leading blockchain in terms of inflows. Solana has proven its consistent ability to attract capital, possibly due to its high speed, low fees, and active community. 

Blockchain adoption can also be gauged by user activity and transaction volume. The 7-Day On-Chain Volume Moving Average (MA) recently reached $105.14 billion, marking a 76.5% increase from the previous week (November 18, 2024). This jump indicates heightened market activity, possibly due to more favorable macroeconomic conditions for risk assets like cryptocurrencies. Once again, Solana currently stands out with daily active users three times higher than the average for other Layer 1 blockchains. It also processes five times more transactions, making it a clear leader in user engagement.

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Total Value Locked (TVL): The DeFi Benchmark

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TVL represents the total amount of cryptocurrency locked in decentralized applications on a blockchain. It’s a measure of the ecosystem’s activity and trustworthiness.

• Top 7-Day TVL Growth:
  • Solana: $10.2B (+28.4%)
  • Sui: $2.1B (+17.8%)
  • Bitcoin DeFi: $4.1B (+15.42%)

Notably, Solana has surpassed Tron to secure the #2 spot in TVL rankings for 30 consecutive days, a testament to its strong DeFi ecosystem. Sui and Bitcoin’s DeFi ecosystems also reached all-time highs, demonstrating growing adoption. Ethereum continues to hold the top spot with it having more than 7x the TVL of Solana along with over a thousand active protocols compared to Solana's 179. It’s interesting, however, that Solana (6.08M active addresses) holds more active addresses than Ethereum (410,811 active addresses). 

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Stablecoins and DeFi Capital Efficiency

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Stablecoins are crucial for liquidity in DeFi systems, offering fixed value in place of fiat currencies, and their usage often offers insights into blockchain efficiency.

• Top Stablecoin Market Cap Growth (7-Day):
  • Ethereum: $94.52B (+4.88%)
  • Arbitrum: $5.12B (+8.60%)
  • Avalanche: $1.8B (+5.21%)

Moreover, chains like Solana and Sui show high capital efficiency, with a Stablecoin Market Cap/TVL ratio below 1. This means their stablecoins are actively used within DeFi protocols rather than sitting idle, reflecting dynamic ecosystems with active users. Polygon has also seen significant outflows, compared to other chains, in terms of stablecoins. 

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Fees, Revenue, and Network Growth

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Revenue from fees is a critical indicator of blockchain activity and profitability. The more people use a blockchain, the more fees it will inevitably earn. 

• 7-Day Fee Growth:
  • Bitcoin: $13.51M (4x increase)
  • Ethereum: $74.32M (+100%-200%)
  • Solana: $46.12M (+100%-200%)

Recently, Jito, a Solana-based protocol, earned $2.53M in fees, entering the Top 10. Its MEV (Miner Extractable Value) activity has contributed significantly to Solana's Liquid Staking Token ecosystem. MEV refers to the maximum profit that miners, validators, or network participants can extract from transactions by manipulating their order, inclusion, or exclusion within a block. Both Ethereum and Solana also saw revenue growth exceeding 100%, showcasing increased user activity. Bitcoin had a 4x increase in revenue, possibly due to increased ETF inflows and expected reduced regulatory scrutiny from recent political events. 

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Where Does the Data Come From?

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All the figures and insights presented here are derived from OKX Ventures’ comprehensive tracking of on-chain flows. As a leading investor in blockchain innovation, OKX Ventures closely monitors trends to support projects shaping the future of crypto.

OKX Ventures is the dedicated investment arm of OKX focusing on supporting innovative blockchain projects worldwide. Its mission is to drive the sustainable development of the blockchain ecosystem by investing in various domains, including blockchain infrastructure, Layer 2 solutions, DeFi, Web3 tools, NFTs, and the metaverse.

On-chain data offers a clear lens into the crypto ecosystem’s dynamics. By analyzing on-chain data, traders, investors, and developers can see where innovation and investment are concentrated. Keep a close eye on OKX Ventures for more updated on-chain analyses! 

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