This article is based on Tomasz's presentation materials shared at this month's Dunecon, which includes data analysis using tools like Dune/Tokenterminal, covering multi-dimensional data such as wallet data, DEX/CEX user counts, NFT trading data, and L2 ecosystems.
Deep Tide has compiled and organized the materials, while also presenting and interpreting valuable data that was not included in the original text.
Key Insights / Opinions:
1. There are 2.5 million active wallets on web3 every day, with Binance, Solana, Polygon, and Ethereum wallets accounting for over 80% of these daily active users.
Interpretation: What does 2.5 million daily active users mean? Comparing it to the most popular electronic wallet overseas, Apple Pay, public data shows that the total user count for Apple Pay wallets on iPhones was 500 million in 2020. Assuming an unreasonable hypothesis that only 1% of them are active users, then the active users of Apple Pay two years ago would be 5 million.
High emotional intelligence: Huge potential for breaking the circle. Low emotional intelligence: The user count is still very small.
2. Centralized exchanges manage 90 million active wallets, but Coinbase's trading volume has decreased by 60%.
Interpretation: Large CEXs may be too big to fall, but users sensitive to cryptocurrency asset prices are too easy to run.
3. The average transaction size on DEX has decreased from $8,000 to $1,400.
4. Comparing CEX and DEX, the revenue growth rates of both show a certain correlation.
Interpretation: Red represents Coinbase, blue represents Uniswap, and the bar chart represents revenue growth rates. It can be seen that both are positively and negatively correlated, with negative growth appearing in July. The statistical correlation coefficient R-squared is 0.6, indicating a certain positive correlation.
An even more interesting data point is that both Coinbase's stock market value and UNI's token market value are declining, with a correlation coefficient reaching nearly 0.8. Perhaps capital has already keenly judged that winter is coming, whether in traditional capital markets or the crypto circle.
5. NFT trading volume has decreased by 97% from its peak.
Interpretation: A macro fact that has long been known. However, the data chart presents it more intuitively: the blue bar that once stood tall representing Opensea is now almost invisible. Additionally, the current rise and fall of gold-digging (image) dogs may just be a survivor bias of success.
6. 40% of NFT buyers use Solana. The average value of Solana NFTs is 10% of the average Ethereum NFTs.
Interpretation: Attention should be paid to NFTs on Solana. In the context of a severely shrinking environment, the liquidity of high-value NFTs is relatively poor, making trading turnover more difficult. Therefore, relatively low-priced NFTs on Solana may have more speculative space.
7. L2s (Arbitrum & Optimism) account for 30-40% of all Ethereum transactions but consume only 2% of total gas, solidifying their value.
Reading: The value of L2 has been a topic of much debate. From the data indicators, everything seems to be improving, but perhaps we should take a closer look at what specific transactions are happening on L2 and whether there are any volume manipulation behaviors?
8. $250 million flows into L2 each month.
Interpretation: The calculation method for this chart is to calculate the total amount deposited from L1 to L2 and the total amount withdrawn from L2 to L1, and the difference gives a net deposit of $250 million. Following up on the previous question, is there a large amount of capital flowing in to take advantage of opportunities or obtain other benefits?
9. Due to FlashBots' searchers, MEV (Maximum Extractable Value) has gradually decreased. Lower MEV means lower fees paid by users during transactions, as the market becomes more efficient.
Interpretation: Maximum Extractable Value (MEV) is an abstract concept for most users, and further explanation will not be provided here. Just from the chart, it can be seen that the vertical axis represents cumulative MEV net profit, and as time progresses on the horizontal axis, the rate of increase in net profit (slope) is gradually decreasing (the slope in the chart is becoming flatter), which means that the MEV that validators (or miners) can extract is decreasing over the same time interval.
10. Developers push about 300,000 smart contracts to Ethereum each month, a number that has remained stable over the past five months. Additionally, about 5,000 developers push code to Web3 weekly, a 20% decrease since the beginning of the year. This number needs to increase significantly for the ecosystem to thrive.
Interpretation: From a development perspective, 300,000 smart contracts per month may also include behaviors like reinventing the wheel and cloning. The author suggests focusing more on code quality and recognition data (such as likes and favorites on GitHub).
11. The correlation between Web3 multiples and revenue is increasing. The investor community has matured in its understanding of how to evaluate Web3 companies. This milestone will begin to change valuations in early and late private markets.
The revenue of protocols or projects is becoming increasingly important to more investors. The recent hot narrative of "real revenue" protocols may be a testament to this, as everyone is paying more attention to projects that can survive and generate sustainable income.
Overall, the crypto ecosystem is facing a winter, but the author sees it as a hibernation before spring.
In the past few years, we have seen so many innovations emerge and are absorbing and practicing the best use cases that these innovations can bring.
Traditional giants are entering the Web3 space with varying degrees of intensity and models; some are fully transforming or even going all-in, while others are just dipping their toes in the water, and many are merely monetizing Web2 traffic through new tracks. As for which specific institutions fall into which category, further research is encouraged.
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Sports Brands
Adidas: Adidas entered early, issuing the Pass card series NFT 'Adidas Originals into the Metaverse' in the second half of 2021 and airdropping physical clothing to holders this year. Adidas has made significant moves in the metaverse direction, holding large plots of land in the core area of the leading metaverse project Sandbox, and also participating in the $4 billion financing of Yuga Labs, the parent company of Bored Ape Yacht Club, in March this year.
Nike: Unlike Adidas's exploration in Web3, Nike directly acquired the NFT streetwear studio RTFKT in November 2021, which owns the well-known blue-chip NFT series Clone X in collaboration with Takashi Murakami. Essentially, with this acquisition, Nike has established a solid foothold in NFTs and Web3.
Li Ning: Chinese Li Ning announced the establishment of the 'Bored Ape Club China Li Ning Branch' in April 2022 and purchased Bored Ape #4102, subsequently launching a clothing series related to #4102.
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Luxury Brands
Tiffany: On July 31, 2022, Tiffany released a pixel-style promotional video on its social media, announcing the official launch of its NFTs on August 5. Tiffany combined the terms "NFT" and "Tiffany" to name its first NFT collection "NFTiffs." The "NFTiffs" series is limited to 250 pieces, each priced at 30 Ethereum (ETH), currently valued at about $55,000, and only owners of CryptoPunks NFTs are eligible to purchase.
Louis Vuitton: To celebrate Louis Vuitton's 200th anniversary in the fashion industry, this elite luxury brand launched an NFT game called Louis: The Game in 2021, where players can complete tasks and collect NFT postcards.
Gucci: In June 2022, Gucci submitted five trademark applications related to NFTs and the metaverse, covering NFT-supported media, crypto brokerage businesses, exchanges, market services, virtual clothing, vehicles, real estate, fashion shows, and currencies. Five of its physical stores in the U.S. already support cryptocurrency payments. Gucci has also purchased land on the Sandbox platform to build its own metaverse space.
Prada: In January 2022, Prada collaborated with sportswear brand Adidas to launch the "Adidas for Prada re-source" series, which was released on the Ethereum sidechain Polygon in January, achieving a trading volume of hundreds of ETH. Prada will also incorporate NFT elements into its monthly "Time Capsule Collection" events, and the brand has launched community services on Discord.
D&G: D&G's first NFT series is called "Collezione Genesi," sold for nearly $5.65 million in September 2021. The sales of D&G NFTs are built on the Ethereum Layer 2 Polygon, designed by the famous design duo Domenico Dolce and Stefano Gabbana. The "Doge Crown" sold for 423.5 ETH (about $1.3 million at the time), while the "Glass Set" NFT sold for 351.384 ETH (slightly over $1 million).
Burberry: In June 2022, Burberry collaborated with Mythical Games to launch its NFT series on the AAA blockchain game Blankos Block Party.
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Traditional Internet
Facebook: Directly renamed 'Meta', an internet first-tier company going all-in on Web3, not elaborated further.
Google: Google Ventures participated in the $4 billion seed round financing of Yuga Labs, the parent company of Bored Ape Yacht Club, in March this year.
Twitter: A tipping channel for digital currencies, and in July 2021, Twitter launched NFT products, allowing users' avatars to display as NFTs and be verified.
eBay: Last year, eBay announced it would allow the buying and selling of NFTs on its platform, and in June this year, eBay completed the acquisition of the NFT trading platform KnowsOrigin.
Amazon: In April 2022, Amazon's new CEO Andy Jassy expressed optimism about the future of cryptocurrencies and non-fungible tokens (NFTs) in an interview. He stated that Amazon may not adopt cryptocurrencies as a payment method for retail business in the near future, but it is likely to sell NFTs in the future.
Netflix: In the new season of "Love, Death & Robots," NFTs and Easter eggs have been incorporated into various film and television works.
TikTok: Launched the NFT collection TikTok Top Moments in its overseas version last October, supporting the immutable x public chain for NFT placement.
Bilibili: Released the Cheers UP NFT series on Ethereum for overseas users, consisting of 10,000 avatar NFTs.
Inke: Inke Interactive Entertainment Group officially changed its name to Inkeverse, fully advancing into the metaverse, and has already released the first generation of Pass NFTs for overseas users on Ethereum.
Baidu: Baidu Japan is preparing to issue its NFTs on Ethereum themed around the Simeji input method and is currently building a community.
Alibaba Cloud: For overseas markets, Alibaba Cloud aims to establish NFT infrastructure, providing an integrated service platform that includes content creation, server hosting, digital marketing, and transaction settlement, to facilitate enterprises in quickly building their own NFT stores.
Tencent: In March 2022, Tencent also invested in the Australian NFT startup Immutable.
Momo: In July 2022, Momo and Tantan's parent company, Zhiyuan Group, authorized IP to WanderingLabs to explore Web3 projects, issuing NFT products Wandering Planet overseas.
Alpha Animation(4.580, -0.03, -0.65%): Alpha Animation officially partnered with the Sydney NFT issuance and trading platform OpenGate, launching the first overseas NFT series of "Pleasant Goat and Big Big Wolf" on July 21, 2022, starting the first round of pre-sales, totaling 50 pieces, with a pre-sale price of 200 USDT.
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Automotive Brands
Lamborghini: "Space Time Memory" is Lamborghini's first NFT project. Lamborghini collaborated with Swiss artist Fabian Oefner, NFT Pro, and Sotheby's to develop five artworks, which were auctioned from February 1 to February 4, 2022, on an exclusive website (the first auction took place at nft.lamborghini.com).
Mercedes-Benz: In early 2022, Mercedes collaborated with Art2People to create an exclusive NFT series based on its G-Class vehicle series.
BMW: In February 2022, BMW released an audio NFT digital collectible called "Sound Museum" in the UAE to record and archive the engine roar of BMW M series models.
McLaren: McLaren launched its first limited edition NFT product, the Genesis Collection, on the Ethereum blockchain on May 11, 2022. The Genesis Collection consists of NFTs of the McLaren P1™ and P1™ GTR supercars, with a total issuance of 2,012 pieces, featuring five levels and eight unique characteristics.
Ferrari: Ferrari signed a multi-year contract with Swiss blockchain startup Velas Network. The new premium partnership will bring exclusive digital content to Ferrari fans. Additionally, Velas will become the title sponsor of Ferrari's esports series.
Porsche: Porsche entered early, announcing the launch of the NFT collectible platform Fanzone on June 14, 2021. This platform is an NFT-based digital card trading platform.
Rolls-Royce: Released an animated video NFT in conjunction with the new Ghost Black model in 2021.
Tesla: Tesla shows little interest in NFTs but is a pioneer in cryptocurrencies, having purchased Bitcoin and Ethereum as reserve assets, and in the U.S., Dogecoin can be used to purchase Tesla accessories.
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Beverages and Alcohol
Pepsi: To celebrate the year of Pepsi's birth, Pepsi launched the Genesis series of NFT collectibles in December 2021. This series is called the "Pepsi Mic Drop" Genesis NFT series, featuring 1,893 unique generated NFTs.
Coca-Cola: In July 2021, Coca-Cola announced a collaboration with RichMinsi to launch the "Pride Collection" NFTs as part of the "International LGBT Pride Day" celebrations. In December 2021, Coca-Cola also released a Christmas snow globe series of NFTs in blind box form through the VeVe platform.
Starbucks: In May 2022, Starbucks announced, "We plan to create a series of NFTs, and owning an NFT equates to gaining community membership, allowing access to exclusive experiences and discounts." Starbucks noted, "These NFTs are themed around Starbucks' artistic expressions, combining traditional and new designs, as well as collaborations with other brands and innovators." The release time for Starbucks NFTs may be at the end of 2022.
Budweiser: In late November 2021, the king of beers, Budweiser, "minted" its first NFT project—Budverse Cans Heritage Edition, a collection of JPEG images featuring Budweiser cans from 1936 with different styles and backgrounds. The project was issued on Ethereum, with each priced at $499.
Red Bull: In March 2022, according to information released by metaverse trademark lawyer Michael Kondoudis on social media, Red Bull submitted trademark applications for NFTs and the metaverse and plans to launch several products related to the metaverse, including cryptocurrencies, clothing, beverages, sports equipment, and a range of financial transaction services.
Wanglaoji: On July 18, 2022, a role-playing NFT project authorized by Wanglaoji and issued by Dr. Ji was officially announced, where holders will play unique roles in the project's magical universe. Currently, three character models have been released. The project is expected to issue over 3,000 PFP NFTs, with subsequent actions such as the roadmap and whitelist yet to be announced.
Wuliangye(147.380, -0.43, -0.29%): Wuliangye is issuing NFTs overseas through the WuliangyeLabs project, originally planned to open a whitelist premint on July 14, with a mint price of 0.1 ETH and a total of 2,000 whitelist spots. However, due to a previous hack on the premint, the plan has been temporarily shelved.
Penfolds: In November 2021, Australian wine giant Penfolds announced a collaboration with NFT premium liquor direct sales platform BlockBar to launch a limited edition NFT wine.
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Investment Institutions
SoftBank: SoftBank's Vision Fund led a $93 million Series B financing round for The Sandbox in November 2021; led a $680 million financing round for European football NFT platform Sorare; and led investments in NFT startup Candy Digital. It also invested in Improbable, the company responsible for the development of the Bored Ape metaverse game Theotherside.
Sequoia Capital: According to statistics from dovemetrics, Sequoia Capital has invested in over 20 Web3.0 companies this year, mainly focusing on blockchain infrastructure. Sequoia is a leader among traditional investment institutions fully embracing Web3. According to its partner Shaun Maguire, 20% of Sequoia's new investments in the U.S. and Europe are in the crypto space.
Blue Pool Capital: This low-profile and mysterious investment fund is actually the family wealth management fund of Jack Ma and Joe Tsai. In addition to participating in The Sandbox's Series B financing, Blue Pool also invested early in The Sandbox's parent company, the Web3 unicorn Animoca Brands. Besides laying out in the metaverse track, Sequoia, SoftBank, and Blue Pool Capital also appeared simultaneously on the latest financing list of the Polygon public chain.
Temasek: As a mysterious and low-profile investment giant backed by the Singapore government, Temasek invested $200 million in the Australian NFT startup Immutable alongside Tencent Holdings and metaverse investment institution Animoca Brands, led a $200 million financing round for digital fintech platform Amber Group, and participated in the $400 million financing round for exchange FTXUS. Temasek also invested early in Improbable, the company responsible for the development of the Bored Ape metaverse game Theotherside.
Horizons Ventures: This investment fund under Li Ka-shing has a high interest in blockchain infrastructure, investing in infrastructure-type projects like Bitpay and Blockstream, and also co-invested in Improbable, which is responsible for the development of the Bored Ape metaverse game Theotherside.
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Traditional Games and Other Industries (Organized around the Sandbox metaverse ecosystem)
Gravity: In July 2022, The Sandbox announced a partnership with global gaming company Gravity to bring "RO: Legend of the Second" into the metaverse and will issue NFTs for content and creation.
SQUARE ENIX: In March 2022, The Sandbox established a new partnership with SQUARE ENIX® to bring the classic RPG game IP "Dungeon Siege" into The Sandbox game metaverse.
Ubisoft: In February 2022, Ubisoft's Rabbids will join The Sandbox to create their own LAND, allowing players to use Rabbids characters and game items in their original gaming experiences.
Hana Bank: In July 2022, The Sandbox announced a new partnership with Hana Bank to expand the global metaverse business in banking. Hana Bank is a commercial bank in South Korea with the largest foreign exchange products. The Sandbox and Hana Bank plan to launch a new type of event marketing, including establishing a cooperative business model, such as opening a virtual branch in The Sandbox metaverse to provide basic banking services and promote investment or provide various opportunities in collaboration with other partners in The Sandbox.
Time Magazine: In September 2021, Time Magazine released their NFT called TIMEPiece. This series collected 4,676 works from 40 artists. Owners of the NFTs received a lifetime membership to Time.com and other privileges; in June 2022, the landmark building Times Square in New York will be redesigned in The Sandbox as a virtual center for art commerce curated by TIMEPieces.
Global Coin Research provides a comprehensive and up-to-date analysis of the top ten web3 venture capital firms and broader industry activities—measuring funding across multiple domains, including: portfolios, competitive advantages, platform strategies, community and reputation, and investments in 2022.
Additionally, Global Coin Research has created a database ranking 50 web3 funds. This is a new tool designed to paint an expanding picture of the industry for founders, investors, and limited partners active in the crypto space.
Web3 must change the world. However, meaning and fun can be found based on the following points:
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Value: It is not just about transmitting and processing information, but also about reflecting its value. We can process or obtain any level of information through this program. For example, when we want an introduction to a computer, we can get the CPU version, brand, storage... We can also obtain any level of information, such as account management, IT department... But if we can make the process valuable, there will be more possibilities and points of leverage.
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Limited Information Rights: Everyone has the right to exchange messages, but the extent of that right is limited by the platform.
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Composability: Blockchain-based smart contracts have composability characteristics. This composability architecture has existed from the beginning.
Based on these points, I feel like I need to climb over a big mountain to see the vast plain.
At the same time, the massive influx of capital has created a lot of chaotic information, and there may even be false information that misleads people. In an episode of Bankless, I remember a guest who was an investor in Polygon mentioned a number: 199.
1 indicates that 1% are the true builders of Web3 and some interesting people;
The first 9 indicates that 9% are investment institutions or certain celebrity KOLs;
The second 9 indicates that 90% of the world's people are other ordinary individuals.
Perhaps this number lacks accuracy, but it also indirectly indicates the essence of why there is such a phenomenon of information chaos. So I often think about which information is useless? What information should be filtered out? Garbage in, garbage out; if a person absorbs only garbage information, the quality of the output will certainly be low. It will also hinder attention to many high-quality contents. After all, everyone only has 24 hours a day, and how to allocate attention is crucial.
Since I started observing Web3, I have been thinking about which content should receive more attention. Although we know that the world is somewhat a dark forest, and some things are beyond control, striving to explore will always yield some unexpected connections, and some innovative ideas in this process can also spark more enthusiasm. Therefore, the article I bring to you today covers three more valuable themes.
