Dapp discovery and analysis platform DappRadar released a detailed report analyzing the state of the crypto market in May. He mainly covered three areas: DeFi, NFT activities, and crypto gaming, stating that the Terra fiasco did not disrupt the DeFi ecosystem as a whole. NFT trading volume was down just 6% compared to April when measured by token prices, and interest in blockchain games remained strong amid cryptocurrency sell-offs.
DeFi is not dead
According to DappRadar report provided by crypto potato, DeFi was the most shabby sector in May. The industry’s total locked value (TLV) was $117 million, down 45% from what was achieved at the end of April. Among all the DeFi protocols, Tron was notably the only network to record a positive number for TLV – a 47% increase from the previous month – while all other major projects experienced declines.
Despite seeming weakness exacerbated by Terra’s historic crash, the report says the sector is “far from dead” as it achieved 11% year-on-year TLV growth. Moreover, the dominant decentralized exchange Uniswap hit the $1 trillion mark in the same month.
The volume of NFT transactions fell by 20% from the previous month – when measured in US dollars – but this number would drop to 6% if considered in native NFT tokens. This shows that the bear market has not fundamentally shaken the beliefs of people in the sector, the report says.
It is worth noting that Solana’s NFTs generated $335M across all markets, up 13% from April, which is contrary to the overall market health. DDespite falling floor prices for blue-chip projects like BAYC and MAYC, the NFT space has not lost momentum as new protocols continue to attract investors.
In terms of markets, OpenSea’s dominance has declined along with increased competition from Solana. Magic Eden, Wax Atomic Center and more. The Coinbase Marketplace has been described as a “failed experiment” as it has only brought in $2.5 million since its launch on April 20 this year.
The report also notes that despite the recent contraction taking place in the NFT space, the rapidly growing sector has been in a consolidation phase since its peak in January of this year, and its engagement with the non-crypto population has changed the current crypto landscape.
The impact that the blockchain industry is receiving from NFTs puts today’s cryptocurrency market in a very different position compared to the conditions seen in the winter of 2018. In those days, the level of engagement and enthusiasm in the industry was alarmingly low. While the mainstream media continues to call for the bursting of the NFT bubble, market conditions in the NFT space are diverging. – reads the newspaper.
Blockchain games remain sustainable
Compared to DeFi or even NFT, Blockchain games were the least affected: the number of such transactions decreased by only 5% compared to April. Meanwhile, the report indicates that a16z has given $4.5 billion in incentives to develop Metaverse and related blockchain games.
The paper explains the latest trend in the transition to earnings. – incorporating an element of gamification into physical activity – as a new incentive to attract new players and support the growth of the sector.
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Credit : cryptopotato.com