After the FTX风波, a weekly overview of the DeFi and NFT markets
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After the FTX风波, a weekly overview of the DeFi and NFT markets
As centralized infrastructure comes under scrutiny, systemic risks have emerged in the market.
Navigating Web3 tides with focused insightsAuthor: kezfourtwez, Parsec Research
Compiled by: TechFlow
DeFi
As centralized infrastructure comes under scrutiny, systemic risks have emerged in the market. When Gemini Earn halted withdrawals due to the Genesis chain reaction, on-chain GUSD activity rebounded.
GUSD has historically seen low adoption, but recent events have pushed up interest rates. This was driven by a large number of Aave users borrowing most of the available liquidity, causing GUSD yields to noticeably diverge from those of Earn—though this gap quickly narrowed as positions were liquidated.
Regardless, cash-out volumes surged this week, with redemptions of USDC, USDT, and GUSD exceeding minting volumes until the weekend (only BUSD remained flat).
Net dollar outflows from stablecoin issuers have become a trend amid the current interest rate environment—an expected development. It’s also clear that issuers need to provide greater transparency around their reserves, especially regarding corporate relationships/entities and how they might impact claims.
Broadly speaking, the past two weeks felt like a "reset." Similar to the downturn in June, the market is now positioning around certain high-risk assets. L1s lack momentum, while narratives with clearer outcomes are gaining favor (e.g., World Cup - CHZ, DEX - GMX, DYDX).
NFT
As leveraged exposure to ETH, NFTs were clearly impacted during this period. Most blue-chip collections dropped 10–20% over the past 30 days, with Punks being one of the few holdings that held firm (owing to their inherent strength and the fact that crypto art serves as a hedge in bear markets). Newer collections, lacking foundational community confidence, suffered significantly steeper declines. In times of fear, NFTs are often among the first to collapse—one sign of panic is visible in the bid/ask ratio plummeting to nearly 50%, indicating nearly all trades were executed by accepting offers.
Despite market fear, many metrics—including trading volume—have found a bottom and begun to recover.
Generally, the Yuga ecosystem serves as a barometer for market forces, given its substantial share of the overall NFT market cap—and Yuga assets are rising. This week also saw numerous project updates, announcements, and collaborations. Panic appears to have subsided, players seem to have moved past prior events, and business appears to be resuming as usual.
However, I am still bearish on NFTs at present.
Even before the FTX collapse, the market struggled to maintain sufficient liquidity amid the constant release of new products.
Now, with increased market volatility and more dollars being wiped out from the ecosystem, my outlook is even more bearish in the short term. If you do participate in trading, you must move quickly in and out.
As a long-term investor in NFTs, I find it painful—NFTs are not just about speculation, but utility.
Half the fun lies in discovering communities that resonate with you, making new friends, and forming connections through shared interests—the essence of belonging.
Web2 x Web3
Although our industry's heartbeat briefly paused, progress was made this week in Web2 x Web3 collaborations. Traditional companies’ willingness to associate their brands with cryptocurrency hasn't slowed—adoption efforts are moving full steam ahead:
- Azuki x Redbull — This marks a new milestone: an NFT displayed on an F1 car for the first time. Lei the Lightning Azuki (#8494) has been printed onto an F1 vehicle and is ready to debut at the Abu Dhabi Grand Prix.
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Apple Pay supports USDC — This means crypto-native businesses have just entered one of the world’s most widely used payment rails. Another win for crypto adoption.
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Goblintown x AtariX — Atari has been gradually entering the Web3 space. A cryptic tweet and teaser video suggest its third attempt may be a Goblintown-themed racing game.
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Pudgy Penguins x Kellogg's — Collaborating with aspiring Web3 streetwear brand Thebr3akfast, though their account is currently suspended, so unfortunately I don’t have further details.
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Cristiano Ronaldo — Has partnered with Binance to launch the "CR7" NFT collection. I’m not familiar with the Binance NFT marketplace, but it appears to be an auction. Item prices (including bids) currently range from $3 to $14,000 depending on rarity, priced in BUSD.
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