David Canellis

Katherine Ross

Today, enjoy the Empire newsletter on Blockworks.co. Tomorrow, get the news delivered directly to your inbox.&nbsp;<a href="https://blockworks.co/newsletter/empire" target="_blank" rel="noreferrer noopener">Subscribe to the Empire newsletter</a>.



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Happy Friday! To celebrate the impending weekend, we’ve put together a new Friday format for you.



This time around, we’re diving headfirst into a new Avalanche partnership for Franklin Templeton, and the crew at Delphi give us all a cycle update.&nbsp;



<h2 class="wp-block-heading">Carving up turf</h2>



A war is being fought over blockchain mindshare by two of Wall Street’s largest operators.



Some would say Franklin Templeton started it by rolling out a tokenized money market fund, FOBXX, on Stellar in 2021.&nbsp;



The fund, which buys government securities with customer cash that’s pooled via an official app, had $100 million in play at the start of last year.&nbsp;



Now FOBXX has over $424 million with 462 token holders, second only to BlackRock’s newer offering on Ethereum, BUIDL, which has so far <a href="https://app.rwa.xyz/">attracted</a> $502.7 million from 17 token holders since it launched in March — just as bitcoin was at all-time high.



Both BUIDL and FOBXX are the largest tokenized money market funds right now.&nbsp;



Crypto native outfit Ondo follows with $282.3 million from a much larger userbase of 4,230 — which makes sense considering it’s available on both centralized and decentralized exchanges, unlike BUIDL and FOBXX.



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1600" height="1015" src="https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-48.png" alt="" class="wp-image-90883" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-48.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-48.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-48.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-48.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-48.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-48.png?w=405 405w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-48.png?w=411 411w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-48.png?w=345 345w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-48.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Net flows for BlackRock’s BUIDL are in orange and Franklin Templeton’s FOBXX is in blue and pink. The faded purple line in the background shows the price of bitcoin since the start of 2023.&nbsp;</figcaption></figure>



With Franklin Templeton expanding FOBXX to also operate on Avalanche, it seems that traditional finance giants are really in the business of marking their tokenization territories, even if there’s no rights to exclusivity.



Franklin Templeton now has Stellar (as does WisdomTree), Polygon and more recently Arbitrum, although nobody has subscribed to the fund through the latter so far. And BlackRock has Ethereum.



“We think there&#8217;s an exciting array of digital nation-states, and we think they&#8217;re attacking and creating new solutions that exist because of the upgraded technology, and we want to partner across [that space],” Roger Bayston, head of digital assets at Franklin Templeton, told us.



“We think there&#8217;s going to be lots of winners, because there&#8217;s lots of business to do. If you&#8217;re in the business of selling block space, then there&#8217;s a lot of business to unfold. You have to have the right technology to optimize that.”



And OK, all those networks are permissionless and anyone can build anything they like on them, including Wall Street.&nbsp;



But if carving out available liquidity is the name of the game for crypto-forward finance shops, then exactly who is launching what and where would be top of mind for executives planning the next move.



So, where to after Avalanche? If liquidity is truly a factor in those decisions, stablecoin supplies could offer some insight.



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1330" height="997" src="https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-47.png" alt="" class="wp-image-90882" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-47.png?w=1330 1330w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-47.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-47.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-47.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-47.png?w=343 343w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-47.png?w=348 348w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-47.png?w=292 292w, https://blockworks-co.imgix.net/wp-content/uploads/2024/08/image-47.png?w=80 80w" sizes="auto, (max-width: 1330px) 100vw, 1330px" /><figcaption class="wp-element-caption">Not shown: Tron, BSC and Ethereum, which all have much larger stablecoin supplies but there seems to be little appetite for traditional finance to experiment with the first two.</figcaption></figure>



It turns out that Avalanche and Polygon have practically the same stablecoin supplies of around $2 billion.&nbsp;



Base and Solana otherwise have $3.2 billion and $4 billion, slightly trailing Arbitrum, and they’d be our bets for where to next.



— David Canellis&nbsp;



<h2 class="wp-block-heading">IYKYK</h2>



On today’s Empire episode, Jason (Yanowitz, though I’d really hope you knew that by now) sat down with Anil Lulla, Yan Liberman, and José Maria Macedo from Delphi to round out the week.&nbsp;



In crypto, Lulla said, don’t bother with a five or 10 year plan. If you need it, “you’re not going to make it.”



“The tricky thing relative to previous cycles was just the fact that not everything goes up now, whereas before… you just have to kind of be right and bet on the fastest horse,” Liberman said.&nbsp;



And things have changed for a couple of reasons. One is pretty clear: People have “wised up,” as Liberman put it. Folks can fall back on historical data in a way they haven’t previously been able to before, and “there’s an element of survivorship bias.”



There’s also less retail this time around, which certainly isn’t helping things.&nbsp;



But that’s not to rain on anyone’s parade: You can still be successful, you just can’t pull the same tactics as last cycle.&nbsp;



And now you know.&nbsp;



One other thing discussed on the pod was where we’re at in the cycle, with Delphi’s Liberman still calling it “fairly early.” This lines up with some of the reporting we’ve presented in other editions. I then always have to ask, “but where do we go then?” and it feels like there are a lot of unknowns at this point.&nbsp;



Maybe we’ll get some clarity next month and break out of the current sideways action we’re seeing at the moment. It seems a lot of bullishness stems from the potential for more TradFi adoption and regulatory clarity. It’s anecdotal, but other aspects of crypto appear to have taken the backseat for now.



Though I’m always curious, dear reader, if you have a different take. My inbox is open.



— <a href="mailto:katherine@blockworks.co">Katherine Ross</a>



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BlackRock

Wall Street has called dibs on even more blockchains

Ben Strack

Delphi Labs has revealed a framework for organizations that it says would complement DAOs and address some of their shortcomings.&nbsp;



The so-called Cybernetic Organizations, or BORGs, would arm state-chartered entities with autonomous software, such as smart contracts and artificial intelligence (AI), the research and development division of crypto research firm Delphi Digital wrote in a blog last week.&nbsp;



Organizations can gradually evolve into BORGs as DAOs work out their kinks, one industry executive said, while another said BORGs could regress a system striving to be fully democratized.



<a href="https://blockworks.co/news/the-investors-guide-to-daos">DAOs</a> are decentralized autonomous organizations in which power is typically granted to token holders who vote on various proposals. A DAO’s votes and activities are posted on a blockchain.



BORGs would not — unlike a DAO — be designed with full transparency, decentralization or autonomy in mind, the Delphi Labs <a href="https://delphilabs.medium.com/assimilating-the-borg-a-new-cryptolegal-framework-for-dao-adjacent-entities-569e54a43f83">blog</a> post states.&nbsp;



DAOs have evolved into “complex non-compliant off-chain businesses,” or have become either non-autonomous or non-decentralized, according to the firm.&nbsp;



Moving certain business activities to “DAO-adjacent” BORGs would provide a more compelling way to solve these issues than DAO-specific laws, according to Delphi Labs.&nbsp;



The fusion of on-chain contracts and adaptive AI are set to manage a range of economic activities over the next decade, such as commercial agreements and capital allocation, according to Umami Labs CEO Alex O&#8217;Donnell.



&#8220;The goals that DAOs have sought to achieve, so far without success, will be brought to fruition, incrementally and over time, by BORGs,” he told Blockworks. “Trustless smart contracts and artificial intelligence are destined to dramatically diminish the scope for human error in virtually every industry.”



But Delphi Labs asserts that BORGs would not replace DAOs, claiming rather that, “BORGs are needed so that DAOs can be DAOs and remain the supreme form of internet-native organization while other forms of blockchain-augmented organizations can experiment under their own identity.”



<h2 class="wp-block-heading">The pros and cons of BORGs?</h2>



Many DAOs currently are as centralized as conventional startups, O&#8217;Donnell argued. He added that the technical capabilities to effectively govern organizations without centralized human decision-makers simply do not yet exist.&nbsp;



BORGs can be housed within almost any type of organization, from DAOs to public companies, the Umami Labs CEO explained.&nbsp;



“Ultimately, what matters isn&#8217;t the label an organization adopts, but the progress it makes toward minimizing trust assumptions,” O&#8217;Donnell said. “At present, no organization can credibly claim to be a DAO, but every organization can gradually evolve into a BORG.&#8221;



But not all are sold on the concept of BORGs.&nbsp;&nbsp;



While it is clear that DAOs and BORGs can coexist within a multi-entity structure, they are incompatible as a basis from which to structure one entity, said Bernhard Blaha, CEO of decentrally governed organization The People’s SCE.



“If a blockchain project is decentralized in its technological makeup and offers ‘community-driven’ distributed data or services, but has a corporate structure running it, then it is no different to a traditional company,” Blaha told Blockworks.&nbsp;



Blaha acknowledged that DAOs are a relatively new concept, and therefore continue to work out fair methods of governance and security, while dealing with a host of scalability issues. He also speculated that BORGs could push a more corporate structure that disempowers members.&nbsp;&nbsp;&nbsp;



“Having a BORG operate alongside a DAO to manage people-centric blockchain projects is rather like inventing a supersonic solar-powered aircraft and then insisting that an official from the Civil Aviation Authority has to walk in front of it with a red flag,” Blaha said.&nbsp;



Though some entities currently resemble the design of BORGs, Delphi Labs said its framework is the first attempt to try to define them.



The company labels <a href="https://dao.curve.fi/emergencymembers">The Curve Emergency DAO</a> and <a href="https://docs.aave.com/governance/aave-guardians">The Aave Community Guardian</a> — multisigs that are able to halt the protocol without a DAO vote — as entities that could be defined as security BORGs, for example.



Delphi Digital did not immediately return a request for comment.



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DAOs

DAOs and BORGs — What’s the Difference, and Who Cares?

Sam Martin

<div id="highlights-block_617725d07bf3f" class="highlights">
 <ul>
 <li>Bitcoin experienced intense volatility that coincided with the closing of CME futures markets</li>
 <li>AAVE, MKR and COMP battle it out for DeFi marketshare</li>
 </ul>
 
</div>



Bitcoin (BTC) experienced a mini flash crash around 2:15 PM ET today but quickly recovered.



Perpetual funding rates remain an important metric to keep an eye on. 



Some industry experts believe that the volatility can be attributed to the recently approved BTC ETF.



The borrowing and lending space in DeFi may be large enough for AAVE, COMP and MKR to all thrive. 



Despite recent turbulence in the NFT space, there remains a lot of catalysts for price appreciation. 



<h3 class="wp-block-heading">Latest in Macro:</h3>



<ul class="wp-block-list"><li>S&amp;P 500: 4,596, +.98%</li><li>NASDAQ: 15,448, +1.39%</li><li>Gold: $1,799, +.03%</li><li>WTI Crude Oil: $83.06, +.48%</li><li>10-Year Treasury: 1.578%, +.049%</li></ul>



<h3 class="wp-block-heading">Latest in Crypto:</h3>



<ul class="wp-block-list"><li>BTC: $60,972, +3.40%</li><li>ETH: $4,264, +6.38%</li><li>ETH/BTC: .0700, +4.31%</li><li>BTC.D: 44.65%, -.84%</li></ul>



<h3 class="wp-block-heading">BTC liquidation cascade</h3>



Bitcoin experienced an intense period of volatility today around 2:15 PM ET, with the BTC price falling as low as $57,653 before quickly recovering. There was a strong rally in the middle of last night from $58,000 up to nearly $62,000 right before the sell-off.



It appears speculators got too excited too quickly, as perpetual funding rates were racing higher as the price action traded in a range right before the sell-off. 



&#8220;The funding rate is derived from the difference between the market price of perpetuals and the spot index it’s anchored to. Excessive buying of perps increases the spread between perp price and the spot index, causing funding to go up. Conversely, negative funding is incited by an influx of perp shorting, forcing the contract’s price to fall lower than spot prices,&#8221; <a href="https://members.delphidigital.io/reports/leverage-wipes-out-but-is-the-worst-behind-us/" target="_blank" rel="noreferrer noopener">wrote</a> Ashwath Balakrishnan of Delphi Digital.



He continued, &#8220;For funding to fall lower, one of two things needs to happen: either existing longs get shaken out and are forced to cover, or there’s an increase in bearish sentiment prompting traders to go net short. Either way, it’s unclear whether we’ve found a local bottom yet.&#8221;



As seen in the following chart, open interest weighted funding rates raced higher prior to the dip in price. Unfortunately, traders began getting aggressive quickly after the correction which signals additional caution may be appropriate. 



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="683" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg" alt="" class="wp-image-10064" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=392 392w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=329 329w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/oi-weighted-funding-rate-2-1024x683.jpeg?w=1200 1200w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Laevitas.ch</figcaption></figure>



According to Skew, roughly $32 million worth of futures positions were liquidated in just a 10-minute window. 



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="869" height="333" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png" alt="" class="wp-image-10060" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png?w=869 869w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-4.00.35-PM.png?w=80 80w" sizes="auto, (max-width: 869px) 100vw, 869px" /><figcaption>Source: Skew.com</figcaption></figure>



<h3 class="wp-block-heading">Are BTC ETFs to blame?</h3>



Some industry experts believe that the volatility can be attributed to the recently <a href="https://cms.blockworks.co/first-bitcoin-futures-etf-nears-1b-on-first-day-of-trading/" target="_blank" rel="noreferrer noopener">approved</a> BTC ETF, which is backed by leveraged positions in the form of cash-settled futures contracts. 



Caitlin Long, 22-year Wall Street Veteran and founder of Avanti, took to Twitter to share her thoughts:



<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">ANOTHER LEVERAGED SLAMDOWN in <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#bitcoin</a> trading mkts today. Again, this is the type of foreseeable event that happens with the bad kind of financialization (the leveraged kind). It increases the cost of capital for the whole sector. smh <a href="https://t.co/hC1sbEtiXx">https://t.co/hC1sbEtiXx</a>&mdash; Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) <a href="https://twitter.com/CaitlinLong_/status/1453807532443455488?ref_src=twsrc%5Etfw">October 28, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



It is unclear if the added leverage via ETF approvals to the BTC ecosystem is to blame for the volatility in price.



It is worth noting, however, that the CME only accounts for roughly 20% of aggregated futures open interest albeit a growing portion. This is significant to add because the CME is where all of the futures are being traded that back the aforementioned ETFs. 



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="572" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png" alt="" class="wp-image-10067" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=467 467w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/skew_btc_futures__aggregated_open_interest-1024x572.png?w=1200 1200w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Skew.com</figcaption></figure>



<h3 class="wp-block-heading">Aave, Compound and MakerDAO battle it out for marketshare</h3>



Aave (AAVE) and Compound (COMP) facilitate peer-to-peer borrowing and lending. Liquidity providers (LPs/lenders) earn interest for their services, while borrowers pay interest on top of their loans to pay the LPs. 



MakerDAO (MKR) allows users to take out loans by locking up digital assets as collateral in return for a decentralized stablecoin, DAI. However, borrowers need to be attentive to their loan-to-collateral ratio as asset prices fluctuate in order to avoid having their collateral liquidated. 



AAVE, COMP and MKR all compete for users&#8217; appetites to take on leverage via borrowing. However, when it comes to lending it is really just AAVE and COMP battling for market share because they have peer-to-peer ecosystems versus MKR&#8217;s collateralized debt position (CDP) model. 



AAVE currently leads based on total valued locked (TVL) in its platform, followed by MKR at third and COMP at seventh: 



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1001" height="379" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png" alt="" class="wp-image-10074" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png?w=1001 1001w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.14.40-PM.png?w=80 80w" sizes="auto, (max-width: 1001px) 100vw, 1001px" /><figcaption>Source: DefiLlama</figcaption></figure>



According to the following Dune Analytics dashboard, the percentage of market participants interacting with COMP has remained consistent since mid-2020, whereas AAVE has stolen a lot of marketshare away from MKR. 



COMP and MKR each hold a 25% market share of active addresses versus AAVE with 50%. 



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="625" height="281" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.21.24-PM.png" alt="" class="wp-image-10076" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.21.24-PM.png?w=625 625w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.21.24-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.21.24-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.21.24-PM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.21.24-PM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.21.24-PM.png?w=80 80w" sizes="auto, (max-width: 625px) 100vw, 625px" /></figure></div>



However, the picture looks a lot different when looking at the market share of loans outstanding per project. AAVE leads with a 35.7% market share, with MKR in 2nd with 34.5%, and COMP in last with 29.9%. 



This implies that while there are fewer active addresses on MKR taking out loans, they are players with very big pockets and trust the stablecoin, Dai, is a pristine asset.



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="410" height="318" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.27.46-PM.png" alt="" class="wp-image-10077" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.27.46-PM.png?w=410 410w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.27.46-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.27.46-PM.png?w=331 331w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.27.46-PM.png?w=337 337w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.27.46-PM.png?w=282 282w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.27.46-PM.png?w=80 80w" sizes="auto, (max-width: 410px) 100vw, 410px" /></figure></div>



With roughly $80 billion of loans outstanding between the three protocols and only 3.5 million DeFi users, the total addressable market and growth run way is extremely large. Only time will tell if all three protocols can thrive side by side.



<h3 class="wp-block-heading">Non-Fungible Tokens (NFTs)</h3>



<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">&#8211; Twitter is implementing NFTs &#8211; Coinbase is building an NFT marketplace &#8211; Facebook is all in on Metaverse &#8211; GameStop is building an NFT marketplace &#8211; Nike working on NFT verification of shoes &#8211; Warner Bros looking to release music NFTs Heck yeah I&#39;m bullish&mdash; Cobble ᵍᵐ (@cobble) <a href="https://twitter.com/cobble/status/1453692007046647810?ref_src=twsrc%5Etfw">October 28, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found in the photos below:



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="331" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png" alt="" class="wp-image-10078" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.44.13-PM-1024x331.png?w=1234 1234w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="282" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png" alt="" class="wp-image-10079" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/Screen-Shot-2021-10-28-at-5.43.56-PM-1024x282.png?w=1208 1208w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure></div>



If you made it this far, thanks for reading! Looking forward to catching up tomorrow.



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