21 April, 2024



The Rise of RWAs and SocialFi: Navigating DeFi’s Tumultuous Third Quarter

11 Oct, 2023

11 Oct, 2023

  • DeFi’s Q3 saw TVL drop over 10%, but Real World Assets (RWAs) offer a promising new avenue for yield, outpacing falling DeFi rates.
  • SocialFi platforms like Friend.tech are on the rise, securing 138k users in a month, proving influencer tokenization has market traction. 
  • Platforms like Maestro and Unibot are spearheading the revolution in DeFi’s UI/UX, utilizing Telegram bots to simplify and streamline crypto trades.

In a quarter marked by turbulence, decentralised finance (DeFi) experienced noteworthy shifts, with TVL dropping by over 10% and an overall decline in the crypto market cap. However, while on-chain activity dwindled, narratives emerged, indicating potential future pathways for the industry as tweeted by Edgy, a DeFi strategist.

Real World Assets (RWAs) emerged as a beacon for investors weary of shrinking DeFi  Annual Percentage Yield (APYs). The stark contrast between the falling median DeFi yields below 2% and the robust 3-month T-Bill rate exceeding 5% underscored the need for fresh yield avenues. 

RWAs, which involve tokenizing traditional assets on the blockchain, demonstrated promising growth trajectories. Especially noteworthy was the rise of protocols like stUSDT and Ondo. Furthermore, MakerDAO’s strategic move to integrate US T-bill yields on-chain led to an impressive price surge in a bearish market backdrop.

Another unexpected narrative was the ascent of SocialFi—platforms like Friend.tech made significant strides by offering tokenization of influencer accounts and access to private chats with crucial issuers. In just a month, Friend.tech garnered 138k unique users, even as competitors like Post.tech on Arbitrum sought market share, Friend. Tech’s dominant position remained largely unchallenged.

The third game-changing narrative revolved around Telegram bots designed to address DeFi’s complex UI/UX. By facilitating crypto trades directly within the Telegram platform, these bots have streamlined user experience. Among the frontrunners in this space were Maestro, Unibot, and Banana Gun.

As the industry braces for Q4, the spotlight remains on these innovative narratives and their potential to redefine DeFi’s trajectory. The anticipation is for more innovations, novel projects, and market shifts, ensuring an eventful conclusion to the year.

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