DApp Detection and Analysis Platform DappRadar released a detailed report in May analyzing the state of the crypto market. It mainly covered three areas: DeFi, NFT activities and crypto games, stating that the Terre debacle did not destroy the entire DeFi ecosystem. The volume of NFT trading fell by only 6% compared to April as measured by token prices, and interest in blockchain games remained strong amid a cryptocurrency sell-off.
DeFi is not dead
According to a DappRadar report shared with crypto potatoes, DeFi was the most vulnerable sector in May. The industry had a total of $ 117 million in total locked value (TLV) – 45% below what it had achieved by the end of April. Of all the DeFi protocols, Tron was noticeably the only network to record a positive number for TLV – an increase of 47% per month – while all other major projects experienced a decline.
Despite the seeming weakness that Terra made worse historical collapse, the report states that the sector is “far from dead” because it achieved a growth of 11% compared to the previous year compared to TLV. Moreover, the dominant decentralized stock exchange Uniswap achieved a benchmark of $ 1 trillion in transaction volume in the same month.
NFT is consolidating
The volume of NFT transactions fell by 20% per month – measured in USD – but the number would fall to 6% if viewed in the original NFT tokens. That shows that it is bear market it did not substantially shake the beliefs of people in the sector, the report said.
It is worth noting Solana NFTs generated $ 335 million in all markets, up 13% from April, defying overall market conditions. Ddespite falling lower prices for blue-chip projects such as BAYC and MAYC, the NFT space has not lost momentum as new protocols continue to attract investors.
As far as the market is concerned, the dominance of OpenSea has declined along with the growing competition stemming from Solana Magic Eden, Wax’s Atomic Hub and more. The Coinbase Marketplace was seen as a “failed experiment” because it generated only $ 2.5 million since its launch on April 20 this year.
The report further states that despite the recent contraction in the NFT space, the sector is developing rapidly in the consolidation phase since it peaked in January this year, and his engagement with non-cryptocurrency populations has changed the current crypto landscape.
The exposure that the blockchain industry received from NFT puts today’s crypto market in a completely different position from the conditions seen in the crypto winter of 2018. At that time, the levels of engagement and enthusiasm around the industry were alarmingly low. While the mainstream media is constantly calling for the NFT bubble to burst, the market conditions of the NFT space do not agree. – it says in the paper.
Blockchain games remain resilient
Compared to DeFi or even NFT, Blockchain games suffered the least, with the number of such transactions being only 5% lower than in April. Meanwhile, the report quoted a16z A $ 4.5 billion commitment as an incentive for Metaverse and related blockchain games.
The document attributes the latest move to earnings – incorporating the element of gamification into physical activities – as a new incentive that includes new players and maintains the growth of the sector.