Original title: "Messari releases Moonbeam Q3 report, analyzing its third quarter performance through four major aspects! "

By Nicholas Garcia

Compiled by: PolkaWorld

Key Insights

The launch of liquidity incentive program Moonbeam Ignite and listing on Upbit increased Moonbeam’s market capitalization by 40% at the end of the third quarter.

The Moonbeam-Acala XCM channel is the channel with the most XCM communication in Polkadot, with 9,500 messages registered. In addition to Polkadot, Moonbeam also maintains cross-chain interactions with multiple other chains.

Moonbeam released Moonbeam Routed Liquidity (MRL), enabling other parachains to access bridged liquidity from other ecosystems without requiring a Moonbeam account or direct interaction with Moonbeam.

Uniswap V3 went live on Moonbeam in the last week of Q3.

About Moonbeam

Moonbeam is an EVM-compatible smart contract platform for building cross-chain applications on Polkadot. As a parachain in the Polkadot ecosystem, it leverages the security mechanisms of the Polkadot relay chain and integrates with other parachains.

Moonbeam provides an EVM implementation and a Web3-compatible API that enables developers to deploy Solidity smart contracts and application programming interfaces with minimal modifications. In addition, Moonbeam also includes features such as on-chain governance, staking, and advanced cross-chain integration capabilities.

Key indicators

Financial Overview

Market Cap

In the third quarter of 2023, despite favorable outcomes in court for both XRP and Grayscale, the dynamics of the entire cryptocurrency market did not change significantly and remained in a relatively stable or inactive state. Moonbeam also followed this trend until the last week, when it saw a significant 40% increase. This growth is due to the launch of Moonbeam Ignite, a program that provides liquidity incentives to protocols in the Moonbeam ecosystem. As the third quarter ends, Moonbeam has a float market capitalization of $176 million, making it the 175th-ranked crypto protocol.

income

In the second quarter, Moonbeam experienced a surge in revenue due to runtime 2302 and Xen Crypto deployments. However, in the third quarter, revenue fell 46% year-over-year, from $160,000 to $87,000. This brings third quarter revenue in line with Moonbeam's historical averages.

GLMR Token

GLMR is the native token of the Moonbeam network. It has multiple functions such as rewarding collectors, enabling on-chain governance, and paying network transaction fees. The token has an annual inflation of 5% and no maximum supply. Of the transaction fees generated on the Moonbeam network, 80% are burned and the remaining 20% ​​goes to the network's treasury. The staked percentage of GLMR has been steadily increasing over the past few quarters, with 36% of its total supply being staked by the end of Q3. In Q3, Moonbeam launched a voting representative feature.

Network Overview

Usage

In the first quarter of 2023, Moonbeam experienced a surge in address activity. However, in the following two quarters, this activity declined, returning to the levels observed in the same period of 2022. On the other hand, Moonbeam's transaction volume increased by 43% quarter-on-quarter. This increase in transaction volume was predictable at the end of the quarter as it was influenced by the Moonbeam Ignite announcement.

According to Electric Capital’s Developer Report, Polkadot has the second-largest developer base among cryptocurrencies. Within the Polkadot ecosystem, Moonbeam has the largest developer base, with over 200 registered developers in Q3 2023.

XCM

The Cross-Chain Consensus Message Format (XCM) provides standardized messages for communication between parachains and other consensus-driven systems, supporting asset transfers, operations, etc. XCM V3, launched on June 15, brings advanced programmability, bridging to external networks, cross-chain locking, enhanced fee payments, and NFT support.

Moonbeam ranks high among parachains in terms of XCM activity. The Moonbeam-Acala channel is considered the most used XCM channel. In Q3, Moonbeam launched new XCM integrations with Centrifuge, Nodle, and Origin Trail.

In Q3, Moonbeam launched Moonbeam Routed Liquidity (MRL). This allows parachains to source bridge liquidity from the ecosystem, including Ethereum, Solana, Polygon, and Avalanche, without requiring a Moonbeam account or its direct involvement. HydraDX is the first parachain to use MRL, which facilitates cross-chain transfers of Wormhole-based tokens and simplifies liquidity transfers from Ethereum to HydraDX through Moonbeam. So far, Ethereum has provided $6.1 million in liquidity to HydraDX through MRL. In addition, the parachain Interlay has also integrated Moonbeam Routed Liquidity.

Ecosystem Overview

Total lock-up

Over the past year, Moonbeam’s decentralized finance (DeFi) total locked value (TVL) in USD has remained relatively stable, but its TVL in GLMR has continued to rise. By the end of the third quarter, Moonbeam’s TVL was recorded at $53 million, ranking it approximately 30th among chains.

Moonwell is the largest lending protocol in Moonbeam by TVL. At the end of Q3, it had a TVL of $42 million, accounting for 79% of Moonbeam's total TVL of $53 million. It was followed by StellaSwap and Prime Protocol, with TVLs of $3.8 million and $3.5 million, respectively. In Q3, Moonbeam's DeFi Diversity Score was three.

It’s worth mentioning that Uniswap V3 was launched on Moonbeam in the last week of Q3!

Stablecoins

By the end of Q3, Moonbeam’s stablecoin market cap was $8 million, ranking 40th in the chain. Native-Frax had a market cap of $5 million, accounting for 70% of Moonbeam’s total stablecoin market cap. In Q3, Polkadot launched native USDC support, which may enhance USDC’s presence as Moonbeam develops support markets. Notably, Moonbeam’s stablecoin market cap dropped sharply due to the Nomad vulnerability in late August 2022.

Summarize

In Q3 2023, Moonbeam showed resilience in an unpredictable crypto market, with a significant increase in market cap in the last week of the quarter. This quarter showed the fruits of a lot of Moonbeam's efforts: while metrics like revenue and TVL fell quarter-over-quarter, metrics like the percentage of transactions and supply showed growth. Despite the decline in total XCM news, Moonbeam still maintained its leading position in this important category.

Looking ahead, Moonbeam aims to strengthen its network activities through Moonbeam Ignite. From a broader perspective, Moonbeam remains the main parachain in the Polkadot ecosystem, but it also faces huge competition from external competitors.