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DappRadar: DeFi Platforms Have Lost 45% of Total Value Since the End of April

The NFT market generated $3.7 billion in May, down 20% from the trading volume registered in April. However, the volume measured in cryptocurrencies decreased by 6.5%. The estimated value of the largest NFT collection also plummeted last month. According to DappRadar, the market capitalization of the 100 largest collections on Ethereum fell by 45%, from $18 billion to $10 billion.

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With the collapse of the former second-largest DeFi ecosystem – Terra – and the crash of LUNA and UST, DeFi platforms have lost 45% of their value since the end of April, according to a report by DappRadar. That has exacerbated the crisis that currently prevails in the crypto market.

DappRadar’s Blockchain Industry Report for May 2022 states that BTC and ETH have lost 25% and 40% of their value, respectively, since the Terra crash.

The total value of locked tokens (Total Value Locked) in the DeFi industry has declined by 45% since the end of April and is currently estimated at $117 billion. However, using May 2021 as a point of comparison, the DeFi sector has gained 11% in value.

Meanwhile, Justin Sun’s Tron (TRX) was the only blockchain to show growth in May, according to DappRadar. Its overall value increased by 47%.

Read more about DappRadar’s Blockchain Industry Report for May 2022 and find the latest updates in the crypto industry with the Born2Invest business news mobile app

The trading volume in the NFT market is down 45%

The NFT market generated $3.7 billion in May, down 20% from the trading volume registered in April. However, the volume measured in cryptocurrencies decreased by 6.5%.

The estimated value of the largest NFT collection also plummeted last month. According to DappRadar, the market capitalization of the 100 largest collections on Ethereum fell by 45%, from $18 billion to $10 billion. It is important to keep in mind that the ETH price has dropped 37% since the end of April, which has largely contributed to this drop in value.

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The lowest price for an NFT from the popular Bored Ape Yacht Club (BAYC) collection dropped 38% in May, from 150 to 93 Ethereum.

But the fact that cryptocurrencies have lost value has seemingly had a good effect on the trading volume of a few new collections, for example Otherdeeds, the metaverse game in the BAYC ecosystem, as well as Goblintown. The latter NFT project has generated $31 million in volume since its launch.

Blockchain games buck the trend

According to the report, investment in blockchain games has continued to pile up, with the gaming category bucking the crypto crash with only a 5% decline in activity and 197% year-over-year growth.

In May, Dapper Labs announced the creation of a new $725 million fund to accelerate growth in the flow ecosystem. Also, a16z has made a commitment to invest a whopping $4.5 billion in its Crypto Fund 4. This will focus on the development and promotion of blockchain projects.

Overall, blockchain gaming gained more and more followers, with dApps like STEPN or Genopets combining a gamification element with physical activities, creating a whole new subsector with Move-to-Earn. Otherside, the play-to-earn project in BAYC’s Metaverse, also generated $760 million in May.

“The macroeconomic situation and the Terra event have amplified the effects of the bear market and dragged crypto prices down, leading to a slight decline in enthusiasm for the sector. Nevertheless, it is a positive sign that user adoption and the number of Web3 developers are on the rise,” the DappRadar report states.

“Likewise, it is encouraging to see that the dApp industry has matured into a multi-chain ecosystem. This is capable of withstanding an adverse event of Terra’s magnitude,” the report continues.

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(Featured image by Morthy Jameson via Unsplash)

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Helene Lindbergh is a published author with books about entrepreneurship and investing for dummies. An advocate for financial literacy, she is also a sought-after keynote speaker for female empowerment. Her special focus is on small, independent businesses who eventually achieve financial independence. Helene is currently working on two projects—a bio compilation of women braving the world of banking, finance, crypto, tech, and AI, as well as a paper on gendered contributions in the rapidly growing healthcare market, specifically medicinal cannabis.