Hyperliquid dominance continues to increase as the platform saw a drastic increase in Sunday spot volumes. Pump and Axiom are neck-and-neck for third place in application revenue over the past week, behind PancakeSwap. We spent Friday’s 0xResearch livestream talking about stablecoins, why we’re all surprised about traditional businesses’ race to launch their own stablecoins and who we think might be the main beneficiaries.

Our No Revenue Top 10 index, mainly composed of XRP, has been outperforming since July 8. The Solana Top 10 index is down over the past week — the only index we track that has underperformed over the past 90 days (-2%).

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Markets are up, stablecoins, and corporate chains | Livestream

Takeaways from Friday’s 0xResearch livestream:

• State and corporate stablecoin initiatives as Wyoming announced creating its own stablecoin, while companies like Stripe launched their own L1 blockchain for payments and Binance announced support for Plasma. We examined how Stripe's integrated payment infrastructure gives it advantages over Circle's pure stablecoin business model, with James noting that building blockchain payment rails is less challenging than securing merchant integrations that Stripe already possesses.

• Circle's revenue model vulnerabilities given its dependence on capturing the 3-4% yield spread from T-bills backing USDC reserves. We analyzed how this strategy faces compression from competitors offering full T-bill yields to users, and noted that Circle pays out yield to distribution partners like Coinbase and Binance rather than end users, potentially due to securities law constraints.

• Challenges to Avalanche's L1-as-a-service positioning given its evergreen initiative to provide blockchain infrastructure for traditional institutions hasn't gained visible traction. We noted how revenue per L1 would be negligible requiring significant scale, while competitors like Ethereum L2s, Optimism, Arbitrum and Solana network extensions create an increasingly competitive landscape for capturing institutional blockchain adoption.

• Solana's application-specific improvements through Jito's block auction mechanism (BAM) and upcoming Firedancer upgrade. We addressed structural disadvantages that market makers face due to network jitter and examined how prop AMMs have gained higher market share than traditional AMMs for stablecoin pairs, with Carlos explaining these remain composable through direct contract integration despite being closed-source market making operations.

• ETH ETF accumulation pace comparison with Carlos highlighting that ETH ETFs acquired 1% of total ETH supply in approximately 40 days, compared to MicroStrategy taking 3.6 years to accumulate 1% of bitcoin supply. We drew parallels to the rapid pace suggesting potentially overheated narrative conditions, while noting that ETH staking derivatives haven't fully deployed their onchain liquidity strategies yet.

Find the full livestream on YouTube, Spotify, Apple Podcasts and X.

This summary was generated with assistance from AI tooling.

Charts of the week

Pump is back on top as the highest revenue-generating launchpad — back to 85%+ of total revenue across tracked launchpads. Over the past week, the protocol generated between $1-$1.5 million in revenue per day.

Spot volumes on Hyperliquid have exploded over the past day, reaching nearly $3.2 billion on Aug. 24. The volumes have primarily been driven by an entity swapping from BTC to ETH on the platform.

Hyperliquid, Pancakeswap, Axiom and Pump continue to dominate application revenue market share, with Hyperliquid making $27.6 million over the past week, PancakeSwap $15.4 million, and Pump and Axiom both making $9 million. Notably, over the past few weeks, Axiom has consistently made more revenue than Pump.

Hyperliquid had the highest network revenue across L1s over the past week ($27.6 million), with Solana at $15 million, or 46% lower.

BTC and ETH ETFs saw net outflows over the past week, with BTC outflows reaching $1.18 billion and ETH outflows reaching $241 million.