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.
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.
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.
(Featured image by Morthy Jameson via Unsplash)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 12]
Empires come in all shapes and sizes, from small upstart affiliate businesses right through to world-dominating empires like TikTok. And...
Green Technologies: Why Southeast Asia is the New Global Investment Frontier
According to a report by the United Nations Environment Program, annual green funding flows in Southeast Asia have been estimated...
Eniax Signs Cerba, Analiza, and Oftalvist as Clients and Aims for 1M in Sales in 2023
Eniax also works with some medical centers in Spain, such as the HLA Moncloa University Hospital in Madrid, from Grupo...
GreenIT and Copenhagen Infrastructure to Develop Three 2 GW Offshore Wind Farms
GreenIT was established in March 2021 and is dedicated to the development, construction, and operation of plants for the production...
Concrete Investing Launches €4.75 Million Crowdfunding Campaign
Concrete Investing has financed 24 real estate transactions to date in four years of activity, with about €46 million raised,...
Business2 weeks ago
Market Crash or Not, the Case for a Bear Market Is Improving
Africa2 days ago
Witti Finances Launches Activities in Ouagadougou
Featured1 week ago
Mass Layoffs at the Fintech Company Moonfare
Business5 days ago
UBS Bailout of Credit Suisse Leaves Markets in Doubt and Spanish Banking Sector Suffers Instability