On-Chain Data Signals in RWAs, DeFi, and Ethereum Layer 2s
Summary
This report uses on-chain measures to assess tokenized real-world assets, DeFi participation, and Ethereum activity through February 2024. It finds that RWA token market capitalization reached reported highs, while RWAs were losing share as collateral in some DeFi products. The authors compare stablecoin supply yields and lending fees with Treasury yields and argue that crypto-native collateral and products were attracting stronger demand at the time. These comparisons are indicators of market conditions, not proof of a durable preference.
The analysis also tracks daily active addresses, user onboarding, and month-to-month retention across selected chains. Decentralized exchanges were a common entry point, while retention had recently weakened after several months of improvement. Finally, it combines Ethereum and selected Layer 2 metrics to show high aggregate activity, transactions, and rollup revenue despite softer Layer 1 measures. Coverage is limited to particular assets, protocols, chains, and time windows; address counts do not necessarily equal unique people, and the report’s conclusions reflect a short historical snapshot.
Key ideas
- RWA token capitalization rose even as RWA use in some DeFi collateral pools declined.
- The report compares stablecoin supply yields and lending fees with Treasury yields to assess relative on-chain demand.
- Decentralized exchanges served as a common first DeFi application for new users in the chains studied.
- User retention improved for several months before declining in January 2024.
- Ethereum activity looks stronger when selected Layer 2 networks are considered alongside Layer 1.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.