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Streaming still looking crappy. Help please!

Dunno if this belongs here but.. here you go


Here is my current rig

GPU: ASUS GTX 670 DirectCU II
CPU: Intel I5 2500k stock (not OC) with Hyper 212 EVO
Motherboard : Asrock Z77 Extreme 4
PSU : 650W

Everything is running below 50 degrees when im gaming. Not too long ago i started streaming to see how my FPS will be. It was really good at the beginning running at about 55-60 FPS. (VSYNC OFF). Here is my recorded stream.

PS: ^ my screen is also cut out. idk why. same video settings on xsplit is the same as dxtory.

As time goes by, my FPS keeps dropping lower and lower. from 55-60 going down to like 40-35 .Am i doing something wrong here?
What more do i need for me to streaming properly ? My upload speed and download is 35mbs/35mbs.

here is my stream with recorded videos. Im using xsplit and dxtory. Any help to make my stream look better and smoother would gladly be appreciated. Tell me what i need to buy or do. :[

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