Social analysis was a great way to underline the market trend and predict which tokens or alts are gaining a niche for themselves. Lately, the altcoin space has had a good run, with many anticipating an old season. Unfortunately, it hasn’t surfaced yet, at least not yet.

One area that saw a lot of movement, however, was the NFT marketplace, where the three largest ERC20 NFT “blue chips” – Chiliz, Decentraland and Enjin – made some great moves.

Source: Sanbase

The DeFi space has been on fire since early 2021, and the ecosystem is showing few signs of deterioration. It recently reached a new milestone as the total number of unique addresses finally hit the 3 million mark. In fact, the total market capitalization of the top 100 DeFi tokens began to grow rapidly in mid-January and peaked in mid-May before the market sell-offs.

In addition, “DeFi” produced interesting spikes on Google Trends that more or less followed the same graph as DeFi’s cumulative market capitalization. Many experts believe that the rise of DeFi has helped non-fungible tokens (NFTs) become more liquid so that users can view them as a more realistic investment option.

Source: CoinGecko

What happens to the NFT blue chips?

Chiliz, Decentraland and Enjin saw almost coordinated price action, with CHZ up 35% and MANA up 70%. Notably, Chiliz saw its price rise 3,690% between February and March. Likewise, the ENJ rose dramatically from $ 0.5 in February to $ 3.2 in April.

More recently, DeFi was back in the news after Jack Dorsey announced that Square was starting a company focused on “decentralized financial services” using Bitcoin. Many in the industry have also linked the rise of NFTs to prove how this area of ​​finance could lead to promising developments such as the advent of Web 3.0.

The three tokens in question saw a decent spike in terms of active addresses. A sharp spike in the middle of June 30th related to the release of UFC tokens on Chiliz put the altcoin at the top in terms of address activity in the chain. The other two gained around 30% at around the same time. At the time of writing, CHZ’s active addresses were also seeing a healthy increase.

Active addresses: CHZ MANA & ENJ; Source: Sanbase

While metrics like active addresses and whale gathering painted a beautiful picture for these three alts, network growth seemed like a worrying story. As did the trading volumes as they also fell. In particular, there were more active whales in CHZ than in MANA and ENJ, although CHZ whale activity appears to be declining. The almost stalled network growth during the price hike underscored the lack of confidence in the strength of the network.

Whale Transaction: CHZ MANA & ENJ; Source: Sanbase

Network growth: CHZ MANA & ENJ; Source: Sanbase

This slowdown in network growth across the DeFi board can perhaps be attributed to the many hits the network has been through lately. Recently, the DeFi Education Fund announced the liquidation of half of the one million UNI tokens donated to it through UNIVERSITY Guide. Likewise, the cross chain bridge Chain swap was hit by a second exploit within eight days a week ago.


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