Recent data from market intelligence firm DappRadar shows that the total value locked (TVL) in decentralized finance (DeFi) experienced a significant drop in August.
According to DappRadar’s industry report for August 2024, the crypto analytics platform reveals that despite a record number of crypto wallets engaging with decentralized applications (DApps), both the TVL in DeFi and the trading volume of non-fungible tokens (NFTs) decreased.
DappRadar reported a 14% decline in the TVL in DeFi compared to the previous month, while NFT trading volume hit a yearly low. However, the number of NFTs being traded increased by 17%.
“DeFi Total Value Locked (TVL) dropped to $144 billion, marking a 14% decline compared to the previous month. However, the DeFi sector remains a top area for investment, accounting for 25% of total funding this month, with $196 million raised.”
“NFT trading volume continued its downward trend, reaching a yearly low of $471 million, down 16% from the previous month. Despite this, NFT sales increased by 17%, indicating a significant drop in average prices compared to March 2024.”
DappRadar attributes the DeFi downturn to token volatility, particularly Ethereum (ETH), which has seen a 22% decrease since the beginning of the month. The firm also links the surge in NFT trading to popular blockchain games like Gods Unchain and Guild of Guardians.
“The DApp industry continues to show strong growth in activity. This month, the average daily Unique Active Wallets (dUAW) reached 17 million, a new record high with a 9% increase from the previous month.”
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