Weekly on-chain, 21.08

What has happened last week?

Well, the market indeed showed some solid movement last week. There was a major cryptocurrency market crash: the Bitcoin uptrend is broken, and the TVL of most of the chains collapsed to year-lows. The volume of liquidations reached a billion dollars. In Friday’s report, we looked at the reasons for what happened and the current technical structure of some underlying assets. Now let’s see whose TVL specs hold up the best.

Base chain not only did not lose TVL but remained number one, increasing TVL by more than one and a half times. Base is becoming a cradle of new narratives: friends.tech, a new SocialFi protocol, was launched here and is now gaining more and more attention.

While Ethereum’s TVL has fallen by nearly 10%, the TVL of rollups is holding steady. Serious drawdowns are observed only on zkSync and Polygon zkEVM, apparently, the interest of drop hunters has faded, which is quite satisfying.

After such a massive drop, we are unlikely to observe the next one in the near future. The most likely scenario is a slight recovery of the strongest chains. Layer 2 networks proved to be the most resilient to the fall, so they will be the main beneficiaries of the liquidity spillover from those who suffered the most.