Gate DeFi Daily Report ( October 29 ): WLFI Airdrop of 8.4 million Tokens; Ethereum Fusaka upgrade has passed final Testnet.

On October 29, the crypto market continued its downward trend, with BTC falling below $113,000 and ETH once again dropping below $4,000, leading to a general weakening of risk appetite. As a result, the total DeFi TVL across the network decreased to $154.473 billion, a 1.27% drop in 24 hours; DEX trading volume also fell to approximately $16.075 billion. Leading protocols such as Lido, Aave, and EigenLayer all recorded declines, and the market has entered a phase of “price pressure and capital waiting” in the short term. Meanwhile, events such as Stream protocol leverage risk, Ethereum Fusaka upgrade, and MetaMask incentive program have collectively become today's focal points, with the market maintaining attention on the structural evolution of DeFi.

Decentralized Finance Market Overview

(Source: DeFiLlama)

Total DeFi TVL across the network: Today (October 29), the crypto market is overall down, BTC has fallen below $113,000, and ETH has once again fallen below $4,000; the current total DeFi TVL is $154.473 billion, down 1.27% in the last 24 hours.

DEX 24-hour volume: approximately 16.075 billion USD, with the top three being: Uniswap (4.38 billion USD), PancakeSwap (2.534 billion USD), Meteora (1.436 billion USD).

Popular Protocols and On-Chain Performance

The top ten DeFi protocols ranked by TVL are as follows:

(Source: DeFiLlama)

Among them, the top-ranking protocol data performances are:

Aave: TVL approximately $39.321 billion, 24-hour fall of 1.67%;

Lido: TVL approximately 34.519 billion USD, 24-hour fall 2.76%;

EigenLayer: TVL approximately 16.816 billion USD, 24-hour fall of 2.8%;

Spark: TVL approximately 10.079 billion USD, 24-hour fall 1.62%

ether.fi: TVL approximately 10.039 billion USD, 24-hour fall of 1.36%

Ethena: TVL approximately 9.897 billion USD, 24-hour fall 3.03%.

In addition, the top ten projects by protocol fees in the past 24 hours are as follows:

(Source: DeFiLlama)

Among them, Uniswap's protocol fees in the past 24 hours reached 6.6 million USD, ranking third, only behind Tether (23.33 million USD) and Circle (7.92 million USD); Hyperliquid's protocol fees in the past 24 hours reached 4.02 million USD, ranking fourth; Meteora ranked fifth with 3.82 million USD.

Project News Overview

1. The crypto KOL CBB0FE posted a reminder stating, "Stream's xUSD has only about 170 million dollars in assets on-chain, yet it has borrowed approximately 530 million dollars from various lending protocols. This means its leverage is as high as 4.1 times – and is built on a large number of positions with extremely poor liquidity.

This is not “yield farming”; it is outright degen gambling. Stay away from it. Do not touch the Morpho / Euler vaults related to this.

In response, the founder of Stream stated, “We are integrating third-party attestors this week. Currently, xUSD is fully backed by collateral and is over-collateralized, with an insurance fund in place. The majority of the funds are distributed across CEX and DEX that have not yet been tracked by Debank. This lack of transparency will be resolved soon.”

xUSD was never designed to be a stablecoin, and if the crypto Twitter (CT) community mistakenly believes it is a stablecoin, then it is our responsibility for conveying that incorrectly. xUSD is actually a “tokenized market neutral fund” that allows ordinary investors to access real yields that were previously only available to private hedge funds and quantitative institutions.

2. Four.Meme announced that the third batch of the $45 million Reload airdrop has been completed, and only the last batch remains to be distributed. Please refer to the official channels of Four.Meme and BNB Chain for relevant news.

3. The Trump family's encryption project WLFI officially announced that its CEX partner will distribute 8.4 million WLFI to participants in the USD1 rewards program. The WLFI rewards program will continue to expand alongside USD1, including the introduction of more ways to earn rewards, new trading pairs and use cases for USD1, upcoming DeFi integrations, and broader reward opportunities to promote the use and adoption of USD1.

4. The Ethereum Fusaka upgrade has passed its final testnet and is expected to go live on the mainnet around December 3rd. Hoodi was the last to successfully simulate the Fusaka operation on three testnets, which include the Holesky and Sepolia networks, and the upgrade tests have been successfully conducted.

The Ethereum Fusaka upgrade will reduce transaction costs and improve efficiency by expanding blob storage and implementing PeerDAS, thus enhancing the scalability of Layer 2. This change could increase blob space by over 400%, marking an important step for Ethereum towards faster transaction speeds and lower costs.

5. The Cosmos cross-chain smart contract platform Neutron officially announced that the Bitcoin Summer Treasury based on Ethereum will close on November 1, and depositors have 4 days left to withdraw their funds.

6. Monad announces that the MON airdrop distribution results are now open for inquiry.

7. Animoca Brands announced the purchase of AERO tokens from the open market and will lock them up.

8. Aster officially announced that all buybacks of S3 will be executed entirely on-chain. After the buyback is completed, the tokens will be transferred to the same address used for the S2 buyback. The S3 airdrop will start after all buybacks are completed. Airdrop tokens will be distributed directly from the buyback address first; if the balance is insufficient, the remaining part will be unlocked from the airdrop allocation to complete the airdrop.

9. MetaMask announces the launch of the MetaMask Rewards points program, allowing users to earn points through trading, exchanging, cross-chain bridging, and inviting friends, as well as receiving points rewards from past activities. Points can be used to upgrade reward levels, unlocking benefits such as fee discounts, token allocations, and partner offers. New incentives and rewards will be updated each quarter.

Users can bind multiple MetaMask accounts to merge points and accelerate upgrades. Some rewards, such as point bonuses and fee discounts, will automatically take effect or can be redeemed during the season.

10. Pendle announced that it has achieved key milestones consecutively over the past two months, starting the fourth quarter strong, with multiple developments and integrations underway, including: October protocol revenue reaching a historic high of $4.5 million (excluding the December 2024 MegaDrop); September volume reaching a historic high of $11 billion.

11. According to official news, SharpLink Gaming (SBET) announced that it will deploy 200 million USD of ETH on the Linea blockchain through strategic cooperation with ether.fi, EigenLayer, and Anchorage.

The company stated that this move will allow it to gain multiple sources of revenue, including native staking rewards, direct incentives from Linea and EtherFi, as well as re-staking rewards through EigenCloud's autonomous validation service (AVSs).

12. According to Dune data, the MegaETH public sale has currently raised $530 million (bidding demand, with an actual cap of $50 million), and the number of participating addresses has reached 18,590.

Polymarket data shows that the market bets on the probability of MegaETH's public offering totaling over 1 billion USD is 82%, and the probability of exceeding 1.8 billion USD is 28%. Currently, the trading volume of this prediction market exceeds 5.72 million USD. In addition, according to the latest data from the MegaETH official website, its public offering total is approximately 469.52 million USD.

The MegaETH public offering will take place on the Sonar platform under Echo, starting on October 27, 2025, at 21:00 (UTC+8) and lasting for 72 hours, ending on October 30, 2025, at 21:00 (UTC+8).

Overview of Major Leading DeFi Projects

Solana DEX 24-hour volume ranks first, at approximately 5.213 billion USD, with the top three projects being:

Meteora ($1.436 billion), HumidiFi ($1.033 billion), Raydium ($1.027 billion);

Ethereum DEX ranks second in 24-hour trading volume, approximately $3.37 billion, with the top three projects being:

Uniswap ($2.125 billion), Curve Finance ($559.95 million), Fluid ($535.66 million);

BNB Chain DEX ranks third in 24-hour trading volume, approximately $2.584 billion, with the top three projects being:

PancakeSwap ($2.075 billion), Uniswap ($659.95 million), four.meme ($5.318 million).

Gate DeFi Sector Token Market Data

According to the data from the Gate market page, the price performance of the top ten tokens in the DeFi sector is as follows:

(Source: Gate DeFi Sector Market)

As of October 29, the downturn in the crypto market continues, with tokens in the DeFi sector generally falling except for WLFI, specifically:

UNI is currently priced at 6.32 USD, with a 24-hour fall of 3.55%;

AAVE is currently priced at 227.11 USD, with a 24-hour fall of 3.73%;

WLFI is currently reported at 0.1489 USD, with a 24-hour increase of 2.68%;

MORPHO is currently reported at $1.98, with a 24-hour fall of 2.36%;

INJ is currently priced at 8.46 USD, with a 24-hour fall of 1.9%;

MYX is currently reported at 2.57 USD, with a 24-hour fall of 5.14%;

CRV is currently at 0.5307 USD, with a 24-hour fall of 4.99%;

SYRUP is currently reported at 0.3842 USD, with a 24-hour fall of 2.32%;

FF is currently priced at 0.1418 USD, with a 24-hour fall of 7.36%.

Market Trend Analysis

TVL slightly declined, the momentum of capital inflow has temporarily slowed down

The total DeFi TVL across the network is currently $154.473 billion, down 1.27% from the previous day, reflecting the direct impact of the correction in crypto asset prices on the locked volume. Leading protocols such as Lido (-2.76%), Aave (-1.67%), and EigenLayer (-2.8%) have all seen declines, indicating a slowdown in capital inflow momentum. In contrast, Spark (-1.62%) and ether.fi (-1.36%) have demonstrated relatively stable performance, highlighting the market's preference for projects that balance yield and security.

DEX volume falls, mainstream platforms maintain dominant position

The 24-hour DEX volume is approximately 16.075 billion USD, continuing a downward trend throughout the week, indicating a decline in short-term trading enthusiasm. Uniswap (4.38 billion USD) remains in the lead with over 27% market share; PancakeSwap (2.534 billion USD) and Meteora (1.436 billion USD) rank second and third, respectively. The total DEX volume in the Solana ecosystem is about 5.213 billion USD, with Meteora, HumidiFi, and Raydium holding the major shares, reflecting that Solana's relative activity in terms of liquidity is still higher than that of other public chain ecosystems.

Protocol revenue shows a steady decline, core applications demonstrate resilience

In the past 24 hours, Uniswap protocol fees reached 6.6 million USD, ranking third after Tether (23.33 million USD) and Circle (7.92 million USD); Hyperliquid (4.02 million USD) and Meteora (3.82 million USD) performed strongly. Although protocol fees have fallen compared to last week, top projects still maintain high-frequency trading levels, indicating that the active user structure in the market has not significantly diminished.

Market events are frequent, security and transparency have become the focus

The Stream protocol has sparked heated discussions in the community due to high leverage issues, highlighting the potential risks of lending and leverage fund management. MetaMask has launched a points reward program to strengthen user incentive mechanisms; Pendle has announced record monthly revenue, showing that the DeFi fixed income sector still has resilience. Meanwhile, the Ethereum Fusaka upgrade is approaching, providing technical support for subsequent layer two scaling and transaction cost optimization. The overall market is showing a pattern of “structural differentiation and cautious recovery” driven by events.

Analyst's View

The market is experiencing increased short-term volatility, with DeFi funds tending towards defensive allocation

Analysts point out that against the backdrop of the simultaneous decline of BTC and ETH, the pullback in TVL and volume aligns with market expectations. Funds are currently leaning towards stable protocols and native yield-generating assets, while short-term high-risk projects may face further selling pressure.

Leading protocols remain the preferred choice for hedging, with stable returns as the main focus

Protocols such as Uniswap, Lido, and Aave have experienced a pullback, but due to their deep liquidity, well-established governance, and controllable risk exposure, they remain the preferred allocation direction for institutions and long-term funds. Analysts believe that the continued performance of these protocols will determine the stability of the bottom of the DeFi market.

Security and transparency will dominate the next phase of capital flow

Stream leverage events remind the market of the importance of internal leverage and risk disclosure of the protocol. Analysts generally believe that the key to future capital inflows lies in project transparency, security, and the completeness of audits, rather than simply high returns.

Technical upgrades and incentive mechanisms may become catalysts for market recovery

The Ethereum Fusaka upgrade and the MetaMask points program are seen as positive signals at the ecological level. The former can significantly reduce transaction costs and expand the second-layer scaling space, while the latter helps to enhance user activity and capital retention rates. Analysts expect that the combination of technology and incentives will become an important catalyst for the recovery of the DeFi market.

Conclusion

Overall, on October 29, the DeFi market entered a technical adjustment phase. The slight decline in TVL and volume reflects a temporary wait-and-see approach by funds, but ecological events are frequent, and the resilience of leading protocols remains. Analysts generally believe that short-term fluctuations do not change the long-term structural recovery trend, and the market is in a critical transition period of “risk release - confidence rebuilding.”