A sharp drop in the market is something that no holder wants, but it is also an opportunity for us to find Gems for the next bull wave.
Series On-chain #2 will give you a realistic view of what is going on with projects today, to see if the recent price drop is due to the project or the market.
This time we will come to the project that is quite interested by many brothers, Inverse Finance (INV).
Review of INV’s On-chain data analysis before the market corrects with BTC crash here.
Information about Inverse Finance
Inverse Finance is a protocol that generates Yields on stablecoins and further invests those Yields in defined assets, e.g. ETH, YFI. The product idea of the project can be understood simply as Earn X on your Y, for example, sending DAI to receive ETH interest.
The 2nd product of Inverse Finance is Anchor & DOLA – a Lending platform, combining the strengths of Maker DAO + Compound.
Inverse Finance is famous in the market for its $100,000 Airdrop, and at the same time, the project has a very strong Dev team and a very loyal community.
This article will analyze the current On-chain data of Inverse Finance. After 2 months from the first analysis, what has the project done? Is the sharp drop in INV token price due to underperforming products?…
Let’s get started!
On-chain data analysis of Inverse Finance products/features
Inverse Finance currently has 2 products and 1 main feature, which are:
- DCA Vaults – Stake X to Earn Y.
- Anchor Banking – Lending Platform.
We will analyze the On-chain data of these products in turn.
DCA Vaults – Still no positive sign
Two months ago, when I analyzed the Inverse Finance project, On-chain data showed that this product showed signs of going down, TVL plummeted from $2 M to $400 K.
After 2 months, the product still has no new improvements, there are still only 4 Pools for users to choose from. TVL is moving sideways and fluctuates at $400K – $600K and has not made any clear progress.
However, one good news for anyone who is a fan of this product, 1 month ago, Inverse Finance spent $1.6 M to buy 1 Developer’s company, thereby calling this person to focus on developing for only 1 developer. this DCA Vaults product.
It can be seen that Inverse has spent a lot on product development, with the same expectation that the product will have innovations in the near future.
Anchor Banking – Strong growth
Anchor is the 2nd product of the project, a Lending platform, combining the strengths of Maker DAO + Compound. This is the product that the project has spent a lot of time on in the past 2 months.
TVL in Anchor 2 months ago was $20 M, now it has doubled ~ $40 M. In addition, this product has extended to many other asset classes that can be borrowed and lent like SUSHI, YFI, WBTC. ..
Anchor is a unique product of Inverse Finance that allows minting Stablecoin $DOLA and creating Lending/Borrowing market.
According to my observations, Inverse Finance pays great attention to developing this product, with many unique features attached, Anchor Banking has a lot of potential for future development.
INV Staking – Strong response from the holder community
This is a new product launched last week.
You can now take INV to Staking to receive xINV, xINV-holders will receive some of the following benefits:
- Used as collateral to borrow properties in Anchor.
- Enjoy a part of revenue from the project’s products.
With a very loyal fan community like Inverse, this feature is very attractive, allowing INV-holders to enjoy more benefits. Very quickly, nearly 24,000 INV tokens, equivalent to 60% of the INV circulating in the market, have been staking in the past week and are continuously increasing.
Although the INV price has fluctuated or decreased very strongly in the past time, INV-holders still hold very tightly (I will clarify the data later in the article), which is what I admire in the Inverse community. Finance.
When the project launched the Staking function, half of the holders took away Staking, which shows that they are very actively involved in the project’s Governance, and also believe in this project.
Above is the analysis of On-chain data about the products of the Inverse Finance project. Next, we will come to the On-chain data analysis of the INV token.
On-chain data analysis of INV token
INV Token Distribution
As I said above, INV has a very strong fan community. Since its launch, the number of INVs held by DEX traders has hardly changed much, they always hold from 28,000 – 35,000 INV ~ 70% – 80% of the INV in the market.
Only when INV launched the Staking feature, did the number of INVs held by DEX traders plummet, from 35,000 INV to 13,000 INV.
Meanwhile, the number of INVs on DEX exchanges is very low, accounting for only about 2% – 3% of the total supply, and has not changed much in the past time.
From the above data, we can draw a few things as follows:
- INV holders hold very hard hands, and are hardly interested in writing trades on the exchange.
- When the project launched the staking feature, the majority of holders joined immediately, which shows the level of interest and trust of the holders with the project.
INV balance fluctuations on exchanges
Of the 41,037 INVs circulating in the market, only 3,385 INV ~8% are on CEX and DEX exchanges. In the past 7 days, the biggest change in INV on exchanges was on Sushiswap, when more than 600 INVs were transferred to this exchange.
That said, during the last price drop, Traders mainly discharged INV on Sushiswap. This is understandable because Sushiswap is the DEX with the highest INV liquidity today.
Balance fluctuation in TOP 10 INV Holder in the past 7 days
With a community of holders, the top TOP wallets are of course also among the toughest holders. In the past 7 days, the INV balance in the wallet of TOP 10 INV holders has not changed. They don’t sell or buy more, just observe.
Summarizing on-chain data analysis of the Inverse Finance (INV) project, we can draw some main ideas as follows:
- In terms of products, Anchor Banking and INV Staking are two products with strong growth in recent years, while DCA Vaults product has not yet had a breakthrough.
- Regarding the INV token, INV-holders have been holding firmly since the project was established.
- The number of INVs taken for staking has reached 24,000 tokens ~ 60% of the current INV supply.
- TOP 10 Holders, holding about 9% of INV in the market, are still holding tight and have not made any move to sell or buy anything more.
You can read about “Inverse Finance’s operating model” to better understand what the project team has been doing with Inverse and with the INV token.
Above are the analysis of On-chain data of Inverse Finance project. INV holders, after reading the article, will you continue to hold or sell in this price wave? Please leave your comments in the comment section so that we can exchange and discuss.
See you in the next “On-chain Microscope” numbers.
Disclaimer: All information contained in this article is intended to provide readers with the latest information in the market and should not be considered investment advice. Crypto investment is a very risky form of investment, readers need to learn carefully before investing and should only participate with capital that can be lost.