Dune Digest #002 – Key On‑Chain Trends Unpacked

June 2025 – Dune Analytics

The latest edition of Dune’s periodic “Digest” spotlights a handful of developments that are reshaping activity across several DeFi and Web3 layers. From a novel token‑ization model on Zora to a resurgence in Euler’s lending platform, a rapid expansion of a yield‑bearing stablecoin, soaring USDC bridge volumes on Sonic, and a record‑high in real‑world asset (RWA) exposure on Arbitrum, the data‑driven roundup offers a concise glimpse of where capital is moving and why.

1. Zora’s “Coins‑as‑Posts” Model Gains Traction

What happened?
Since its February 21 launch, Zora has introduced a system where every user‑generated post is minted as an ERC‑20 token with a fixed supply of one billion units. Creators automatically receive 10 million of the newly created tokens and earn half of all transaction fees generated by the market for that post.

Numbers to note

Analysis
The model effectively turns content into tradable assets, encouraging creators to engage financially with their audiences. The modest fee‑share (50 %) appears sufficient to generate a measurable incentive pool, while the uniform supply cap keeps tokenomics simple. However, the relatively low per‑token price point suggests the market is still experimenting with valuation mechanisms and liquidity provision.

Takeaway – If the model sustains or improves its fee‑share terms, Zora could see higher creator retention and deeper secondary market activity, potentially positioning itself as a hybrid social‑media/DeFi platform.

2. Euler v2 Rebounds: From Exploit to Near‑$1 B TVL

What happened?
Six months after the March 2023 flash‑loan breach, Euler’s second‑generation lending protocol posted a surge in both fees and total value locked (TVL). Weekly fees topped $250 k, while TVL climbed past $800 M, up from $711 M the week prior.

Key catalysts

• Introduction of Midas RWA collateral assets (mMEV, mEDGE) that let borrowers leverage yield‑bearing tokens while earning APYs above 30 %.
• Launch of new lending markets by Resolv Labs for USR‑denominated assets ($USR, $USDC, $wstUSR).

Analysis
Euler’s “phoenix” narrative is anchored in diversification of collateral and product expansion. By integrating real‑world asset tokens and high‑yield strategies, the protocol has broadened its risk‑adjusted return profile, attracting both retail and institutional lenders. The fee growth also signals healthy utilization of the new markets.

Takeaway – Euler’s rapid TVL recovery illustrates how resilient protocol design and timely product upgrades can restore user confidence after security incidents. Continued expansion of RWA collateral could make Euler a focal point for capital seeking exposure to both DeFi and off‑chain assets.

3. lvlUSD: A Yield‑Bearing Stablecoin Scaling Fast

What happened?
Level’s native stablecoin, lvlUSD, which is collateralised by both USDC and USDT, has seen its circulating supply triple to $90 M in the last month. Of this, $34 M is actively staked as slvlUSD, earning yield through a combination of Aave lending and EigenLayer restaking. Liquidity has been allocated primarily to Pendle ($22 M) and Curve ($3 M). The project also closed a $2.6 M funding round led by Dragonfly.

Analysis
The triple‑fold supply increase indicates strong demand for a DeFi‑native, yield‑generating stablecoin, especially as investors seek alternatives to traditional, non‑interest‑bearing USD‑pegged assets. The integration with both Aave and EigenLayer creates a composable yield stack, though it also introduces layered risk from multiple protocol dependencies.

Takeaway – lvlUSD’s growth could pressure other algorithmic and collateralised stablecoins to adopt similar yield‑layer strategies. Monitoring the health of underlying lending pools will be essential to gauge long‑term sustainability.

4. Sonic’s USDC Bridge Milestone

What happened?
Sonic surpassed $250 M in bridged USDC (USDC.e) just months after its December launch. The network also announced upcoming native USDC support via the CCTP V2 bridge, aiming to streamline user experience and reduce liquidity fragmentation. Current TVL on Sonic sits near $850 M, with a robust ecosystem of liquidity providers and DeFi protocols (e.g., Aave, Pendle) already active.

Analysis
The rapid bridge volume signals strong confidence in Sonic’s cross‑chain infrastructure and hints at growing appetite for USDC‑centric liquidity on newer L2s. The planned native USDC integration should further lower frictions, potentially attracting more institutional players seeking stable, low‑slippage bridges.

Takeaway – Sonic is positioning itself as a key hub for stablecoin activity on emerging Layer‑2 solutions. Its fee‑monetization program and expanding protocol integrations could accelerate adoption, making it a contender for future TVL rankings.

5. Real‑World Assets on Arbitrum Reach New High

What happened?
Tokenised real‑world assets on Arbitrum climbed to an all‑time high of $160 M, with US Treasury-backed tokens accounting for 80 % of the total and EU Treasury tokens 15 %. Franklin Templeton’s BENJI token alone represents 48 % of the market share, followed by Spiko’s EUTBL at 15 %. The growth is largely attributed to Arbitrum DAO’s Stable Treasury Endowment Program (STEP), which has already generated over $500 k in interest revenue.

Analysis
The significant US Treasury exposure indicates a risk‑averse tilt among participants, while the involvement of major institutional managers (BlackRock, Franklin Templeton, etc.) reflects a widening acceptance of on‑chain RWA. STEP’s revenue generation demonstrates a viable model for DAO treasuries to fund operations through sustainable yields.

Takeaway – With institutional capital flowing into tokenised sovereign debt, Arbitrum could become a primary L2 for RWA issuance, offering a bridge between traditional finance and DeFi liquidity markets.

Overall Insights

• Tokenisation of content (Zora) and stablecoins with built‑in yield (lvlUSD) illustrate a broader trend of embedding financial incentives directly into the user‑experience layer.
• Protocol resilience (Euler) and cross‑chain liquidity expansion (Sonic) highlight that capital is rewarding platforms that can quickly adapt after setbacks or supply new bridge infrastructure.
• Institutional participation in RWA tokenisation (Arbitrum) and stablecoin funding rounds (Level) signals a maturing DeFi ecosystem where traditional finance actors are increasingly comfortable with on‑chain assets.

The Dune Digest’s data‑driven snapshots underscore that while experimentation persists, clear signals of user adoption, fee generation, and institutional backing are emerging as the primary metrics for long‑term viability. Stakeholders should watch how these patterns evolve over the next quarter, especially as new integrations—such as Sonic’s native USDC and Zora’s expanding creator incentives—roll out.

The data must flow.

— The Dune Analytics Team

Source: https://dune.com/blog/dune-digest-002