As a seasoned analyst with extensive experience in the blockchain and cryptocurrency space, I find the recent surge in Total Value Locked (TVL) in Decentralized Finance (DeFi) applications to be an intriguing development. The TVL reaching $192 billion in May, the highest since February 2022, is a clear indication of growing investor interest and confidence in DeFi. However, I am also concerned by the 21% decline in unique active wallets (UAW), which dropped to 1.75 million, indicating that not all new investors are actively engaging with these applications.
The sum of funds secured in decentralized finance (DeFi) apps reached an all-time high of $192 billion in May, as reported by DappRadar. This growth can be attributed to rising prices of Ether and other cryptocurrencies. On the other hand, there was a 21% decrease in the number of distinct active wallets (UAW) participating in DeFi, bringing the total to approximately 1.75 million – representing around 17% of the UAW for Web3 applications as a whole.
In the Decentralized Finance (DeFi) sector, Ethereum held the largest market share with a Total Value Locked (TVL) of approximately $130 billion, making up around two-thirds of the entire market. Solana came in second place with a TVL of about $10.9 billion, equating to just under 6% of the overall total. Notably, Solana’s DeFi sector experienced robust growth, with its TVL rising by over 14% compared to the previous month.
DappRadar explained that the surge in Total Value Locked (TVL) in decentralized finance (DeFi) applications was primarily due to heightened anticipation regarding a potential Ethereum ETF approval in the US. Consequently, the dollar worth of cryptocurrencies secured within DeFi platforms expanded by approximately 17% during May. DefiLlama further disclosed that trading volumes on decentralized exchanges escalated from $1.7 billion to $5.1 billion between October 2023 and June 2024, resulting in increased returns for liquidity providers.
Approximately 3 million people actively used gaming platforms in the past month, marking a 7.5% growth compared to the previous month. The user base of NFT marketplaces expanded by 11%, totalling 1.52 million individuals. Meanwhile, Web3 social media apps experienced a significant surge of 29%, welcoming 1.92 million new users. Collectively, over 10.4 million people engaged with Web3 applications.
In the realm of decentralized finance (DeFi), there has been a significant uptick in usage with the total value locked (TVL) increasing by a substantial $11.89 billion as of May 18, 2023. This represents a new TVL of $94.974 billion, according to defillama.com. It is important to note that Perfectswap underwent a complete reversal and reported a 100% decrease in TVL. Among the leading protocols, Lido Finance holds an impressive $29.21 billion, marking a 1.49% growth. Eigenlayer boasts a TVL of $15.40 billion, representing a 3.5% rise. Furthermore, MakerDAO, Justlend, and Aave all experienced notable increases in TVL by 7.95%, 4.95%, and 9.22%, respectively.
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2024-06-08 00:36