Moonbeam Q4 2023 Brief

Key Insights

• Moonbeam's XCM activity hit an all-time high. The all-time high of 185 messages per day represents a 108% increase QoQ, driven by enhanced ecosystem activity and strategic integrations.
• Network usage experienced a significant uptick. Daily active addresses increased 54% QoQ to 5,000, and daily transactions increased 14% QoQ to 52,000.
• Referendum 139 extended Moonbeam's parachain slot. The slot was secured for 162,800 DOT, which was self-funded by the Moonbeam team.
• Moonbeam maintained a strong developer presence. Data from Electric Capital indicated that Moonbeam's ecosystem was supported by 250 monthly active developers, including 85 in full-time roles.
• The Moonbeam ecosystem surpassed 300 projects.

Primer

Moonbeam (GLMR) is a Layer-1 parachain on the Polkadot Network, serving as an EVM-compatible smart contract platform. It provides an Ethereum Virtual Machine (EVM) implementation and a Web3 API, enabling straightforward deployment of Solidity contracts and protocol interfaces with minimal modifications. Its primary features include cross-chain integration, staking, and on-chain governance.

The network includes multiple deployments: Moonbeam on Polkadot (December 2021), Moonriver on Kusama (June 2021), and Moonbase Alpha on TestNet (September 2020). This structure ensures safe and rapid updates to Moonbeam's mainnet.

Moonbeam's technology stack, built with Rust and Substrate, provides a robust development environment. It boasts Ethereum compatibility, offering a full EVM implementation and Web3 RPC API, which integrates existing Ethereum tools and applications. As a key player in the Polkadot ecosystem, Moonbeam provides developers with an accessible route to leverage Polkadot's network effects while utilizing Ethereum tooling and compatibility.

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Key Metrics

Market Capitalization

In Q4 2023, the entire crypto market cap experienced an increase, largely driven by anticipation surrounding the spot BTC ETFs. GLMR participated in the overall market rally and saw additional gains, attributed to the culmination of Moonbeam Ignite, enhanced network usage, and increased XCM activity. The circulating market cap for Moonbeam ended the quarter at $370 million, and the fully diluted market cap adjusted to $503 million.

Moonriver (MOVR) re-rated to represent a meaningful percentage of Kusama (KSM’s) market cap (55%), with a valuation of $236 million compared to KSM's $431 million. In contrast, GLMR's market cap remained at a small percentage of DOT's market cap (3%), with GLMR's valuation at $370 million against DOT's $11 billion. These comparative valuations highlight Moonbeam's relative positioning within the broader ecosystem and indicate areas of growth.

GLMR Token and Revenue

In Q4 2023, Moonbeam reported revenue of 387,000 GLMR, down 5% QoQ. The revenue in USD was $126,000, representing an increase of +123% QoQ. This uptick was further amplified by the increase in GLMR's price.

GLMR is the native token of the Moonbeam network. It serves multiple functions, such as rewarding collators, enabling onchain governance, and paying for network transaction fees. The token experiences an annual inflation of 5%, with no maximum supply. Of the transaction fees generated on the Moonbeam network, 80% are burned, with the remaining 20% directed to the network's Treasury. The proportion of GLMR staked has consistently risen over several quarters, culminating in 37% of its total supply being staked by the end of Q4.

The quarter also saw significant developments affecting the Polkadot ecosystem's tokenomics. The final 99 million DOT from the first batch of slot auctions were unlocked. Furthermore, Referendum 139 successfully extended Moonbeam's parachain slot through June 2025 for 162,800 DOT.

Usage and Development

In Q4 2023, Moonbeam's network activity reflected strong growth. Daily active addresses reached 5,000 (+54% QoQ), with daily new addresses at 1,300 (+45% QoQ) and daily returning addresses at 3,700 (+57% QoQ). Transaction volume increased to 52,000 daily transactions (+14% QoQ).

Key developments and community initiatives included:

• 300 Ecosystem Projects: Surpassed 300 projects deployed on the network.
• Moonbeam Network Partners With DUX Grupo RÃO: Initiated Brazil’s largest Web3 Loyalty Program, aiming to integrate approximately 1 million users.
• Moonbeam Partners With W3bLock and World Jiu-Jitsu Certifier: Launched a global registration platform for Brazilian Jiu-Jitsu practitioners and instructors.
• The Lunar Gaming Festival: Celebrated gaming in the Moonbeam ecosystem with a community-led festival featuring a prize pool.
• Moonbeam Ignite Wrap Up: Concluded the Moonbeam Ignite programs with participation from Gamma, BeamSwap, Moonwell, and more.
• Moonsong Labs Establishment: Announced a new venture focused on Web3 protocol development aiming to broaden and expand the Moonbeam ecosystem, led by Moonbeam Founder Derek Yoo.

In October, data from Electric Capital revealed that Moonbeam maintained a significant developer presence, with 250 monthly active developers participating in its ecosystem. Among these, 85 were engaged on a full-time basis.

XCM

In Q4 2023, Moonbeam's Cross-Consensus Messaging (XCM) activity reached an all-time high with 185 messages per day, a 108% increase QoQ, driven by increased ecosystem activity and strategic integrations.

Noteworthy XCM developments include:

• Strategic Integrations: OriginTrail and Subsocial, making their native tokens available on their respective parachains.
• Runtime Enhancements: Improvements in Moonbeam's runtime, notably the XCM Transactor precompile, have facilitated the efficient transmission of XCM messages from within the EVM.

In Q3, Moonbeam introduced Moonbeam Routed Liquidity (MRL), utilizing Wormhole as the core message-passing protocol and Carrier/Automata as the message-relaying service. MRL enables parachains to access bridge liquidity from various ecosystems, including Ethereum, Solana, Polygon, and Avalanche, without requiring a Moonbeam account or direct involvement. Since its inception, MRL has facilitated a total net volume of $10.1 million over 842 transactions.

Total Value Locked

For Q4 2023, the Total Value Locked (TVL) in USD on Moonbeam was recorded at $70 million, representing a 34% increase QoQ from $53 million. In the same period, the TVL in GLMR decreased by 31%, totaling 154 million GLMR compared to 224 million GLMR in the previous quarter. The Liquid Staking TVL in USD also saw a 70% decrease to $363,000, with Lido being the only liquid staking protocol on Moonbeam. Additionally, the MixBytes team announced the discontinuation of their development and technical support for Lido on Polkadot and Kusama, as they actively explore the possibility of providing technical support for a dedicated DotSama native liquid staking solution.

The leading protocols by TVL on Moonbeam are:

• Moonwell (Lending): $49 million TVL, +18% QoQ.
• Prime Protocol (Lending): $9 million TVL, +142% QoQ.
• StellaSwap (DEX): $7 million TVL, +80% QoQ.
• BeamSwap (DEX): $3 million TVL, +214% QoQ.
• FraxSwap (DEX): $2 million TVL, 36% QoQ.

Uniswap V3 launched on Moonbeam at the end of Q3, yet it has struggled to establish a substantial foothold in the ecosystem. As of the final quarter, it ranks 11th in Total Value Locked (TVL) with a TVL of $185,000. Moreover, it trails significantly in trading volume compared to other protocols on the network. Notably, Stellaswap leads by volume, accounting for 61% of the total volume on Moonbeam.

Stablecoins

In Q4 2023, Moonbeam's stablecoin market cap reported no significant change from the previous quarter, maintaining a value of $7.7 million. This level has persisted since April 2023.

During Q3, the Polkadot network introduced support for Native USDC, thereby extending its availability to Moonbeam via XCM. This addition allows Moonbeam protocols to incorporate USDC into their products and services.

However, despite the availability of native USDC, its adoption within the Moonbeam ecosystem has not shown a marked increase. Frax continues to hold a dominant position in the ecosystem's stablecoin market, with a market cap of $5 million, representing 69% of Moonbeam's total stablecoin market cap. In terms of broader stablecoin market standings, Moonbeam is ranked approximately 40th, indicating its position relative to other ecosystems.

Closing Summary

In the fourth quarter of 2023, the Moonbeam ecosystem saw substantial growth and development. Cross-consensus messaging (XCM) activity reached an all-time high, driven by increased ecosystem engagement and strategic integrations. Network usage also surged, with daily active addresses rising by 54% QoQ to 5,000, and daily transactions increasing by 14% QoQ to 52,000. GLMR's market capitalization benefited from the broader market rally and heightened network activity, marking a 110% QoQ increase.

Looking ahead, Moonbeam is well-positioned for further growth. With over 300 projects in its ecosystem, Moonbeam has a diverse community of projects. The network maintains a strong developer presence, with 85 full-time developers. Furthermore, Moonbeam's extension of its parachain slot confirms its commitment to the Polkadot ecosystem for the next two years. It will be paramount for the Polkadot ecosystem to attract more activity to ensure the continued success of the Moonbeam protocol.

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