After two gloomy months for the overall DeFi market cap in September and October, the growth is back in November. On the Coingecko DeFi index, market cap has reached a record high of $19.5 billion on September 2nd for the top 100 DeFi coins. After that, the index decreased to a local minimum of around $12 billion in early October before bouncing back in November to $19 billion.

Evolution of market cap of top 100 DeFi index

Source: Coingecko, November 2020

When looking at the Total Value Locked (TVL) on DeFi protocols provided by DeBank, it’s clear that the downwards trend in market cap during September and October hasn’t affected the attractiveness of decentralized financial services. Investors kept increasing funds in DeFi protocols reaching a new high of around $17.5 billion in late November.

Evolution of Total Value Locked (TVL) in DeFi assets

Source: DeBank, November 2020

To see who benefited the most from this growing trend, let’s have a look at our on-chain indicators. Ranking assets on their growth in terms of active wallets on a monthly basis, Compound (+144%), Aave (+49%), Maker (+46%), and Wrapped Bitcoin (+40%) appear as the biggest winners of the month.

Comparative dashboard of DeFi assets - ranked by active wallets growth (high to low)

Source: Nyctale, November 2020

We can see that Compound has been an attractive asset for investors, displayed on the incoming investor growth (consult our methodology for further details). It went from 297 to 606 incoming investors on a daily basis (+104%), all along the last month.

Evolution of incoming investors - Compound (COMP)

Source: Nyctale, November 2020

Aave has quite a similar pattern, showing a nice growth and moving from 296 to 485 daily incoming investors within the last month (+64%).

Evolution of incoming investors - Aave (AAVE)

Source: Nyctale, November 2020

IDEM for Maker, moving from 78 to 138 (+77%).

Evolution of incoming investors - Maker (MKR)

Source: Nyctale, November 2020

On the contrary, Uniswap (-30%), Uma (-30%), Nexus Mutual (-29%), and Yearn.finance (-24%) have experienced the strongest decrease in terms of active wallets.

Comparative dashboard of DeFi assets - ranked by active wallets growth (low to high)

Source: Nyctale, November 2020

Despite these decreased numbers in terms of on-chain activity, these 3 assets had quite a stable number of incoming investors acquiring new tokens. Uniswap went from 1,157 to 1,447 (+25%) with a peak reached in parallel with the end of their liquidity mining period. This last event might explain the decrease in terms of active wallets which has, however, eventually not affected the attractiveness of this asset for investors that much.

Evolution of incoming investors - Uniswap (UNI)

Source: Nyctale, November 2020

Uma went from 48 to 74 incoming investors on a daily basis (+54%), with several spikes around 150-200 wallets labeled as such.

Evolution of incoming investors - Uma (UMA)

Source: Nyctale, November 2020

For Nexus Mutual, the situation is slightly more worrying with only 13 wallets labeled as incoming investors on a daily basis lately, which was at the exact same level a month ago.

Evolution of incoming investors - Nexus Mutual (NXM)

Source: Nyctale, November 2020

Driving your investment thesis by taking into account on-chain analytics is key to increase your middle and long-term investment performance. Don’t only look at the price patterns, and analyze what other investors are doing thanks to Nyctale’s solution!