DeFi TVL reaches $192B for the first time in 15 months – Dapradar
Total value locked (TVL) in decentralized finance (DeFi) reached $192 billion in May, the highest amount since February 2022, according to a report from blockchain analytics platform DappRadar. Despite the increase in TVL, the number of unique active wallets using DeFi has decreased by 21%.
The U.S. dollar, the cryptocurrencies locked into DeFi applications, rose 17 percent in May, boosted by Ether (ETH) and token prices. Ethereum dominated the DeFi market by TVL, accounting for $130 billion of all networks, or 68% of the total. Solana ( SOL ) was second with $10.9 billion, or 5.7 percent of the total. Solana DeFi TVL increased by 14% compared to last month.
Despite strong TVL growth, the DeFi sector saw a decline in the number of daily unique active wallets (UAW), indicating that the user base is shrinking at the same time that residual users are saving more or seeing their portfolios increase in value. The UAW declined 21% month over month to 1.75 million, which is the UAW's 17% of all Web3 applications combined.
Dapradar attributed the rise in TVL to short-term speculation about the potential of an Ethereum exchange-traded fund. “DeFi UAW has declined, meaning most trading was speculative based on ETH ETFs,” he said.
According to Defi Lama, the 24-hour trading volume increased from $1.7 billion to $5.1 billion between October 1, 2023 and June 7, 2024. More crypto to DeFi applications. This was also the time when Bitcoin (BTC) and Ethereum ETFs were widely discussed.
Related: Ethereum ETF launch date depends on issuers, not SEC – Gensler
Although the DFI sector saw a decline in UAE, other sectors of the Web3 market gained users, the report said. The gaming sector had more than 3 million active users, an increase of 7.5% compared to the previous month. The number of NFT marketplace users increased by 11 percent, reaching 1.52 million UAW, and Web3 social media applications reached 1.92 million UAW, an increase of 29 percent.
According to the June 6 report, the total number of Web3 UAWs now stands at 10.4 million. An earlier report in April said the UAW reached 7 million users in Q1 2024, up from 4.3 million users in 2023. Taken together, this data shows a steady increase in users for Web3 applications. However, some experts argue that on-boarding is still very difficult and will limit the future growth of the industry if it is not fixed.
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