New data from market intelligence firm DappRadar reveals that the total value locked (TVL) in decentralized finance (DeFi) plunged during the month of August.
In its industry report for August 2024, the crypto analytics platform unveils that while last month saw a record number of crypto wallets interacting with decentralized applications (DApps), both the TVL in DeFi and trading volume of non-fungible tokens (NFTs) saw significant dips.
According to DappRadar, the TVL in DeFi dropped by 14% from the previous month while NFT trading volume reached a yearly low. However, DappRadar also found that 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, in line with broader market trends. 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 trajectory, reaching a yearly low of $471 million, down 16% from the previous month. Despite this, NFT sales increased by 17%, indicating that while more NFTs are being traded, their average prices have fallen significantly – now five times lower than in March 2024, when the market peaked.”
DappRadar says the downturn in DeFi can be attributed to the volatility of tokens, particularly Ethereum (ETH), which has seen a 22% drop since the start of the month.
The intelligence firm says the spike in the number of NFTs traded can be linked to blockchain games such as Gods Unchain and Guild of Guardians, which have become some of the most actively traded communities.
However, DappRadar notes that the DApp industry itself is rife with activity.
“The DApp industry continues to demonstrate a strong upward trend in activity. This month, the average daily Unique Active Wallets (dUAW) reached 17 million, marking a new record high and reflecting a 9% increase from the previous month.”
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