New data from market intelligence firm DappRadar shows that the total value (TVL) in decentralized finance (DeFi) plummeted in the month of August.
In his industry report for August 2024, the crypto analytics platform reveals that while a record number of crypto wallets interacted with decentralized applications (DApps) last month, both TVL in DeFi and trading volume of non-fungible tokens (NFTs) saw significant declines.
According to DappRadar, TVL in DeFi fell 14% from the previous month, while NFT trading volume hit a yearly low. However, DappRadar also found that the number of NFTs traded increased by 17%.
“DeFi Total Value Locked (TVL) fell to $144 billion, down 14% from 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 an annual low of $471 million, down 16% from the previous month. Despite this, sales of NFTs increased by 17%, indicating that although 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% decline since the start of the month.
The intelligence agency says the spike in the number of NFTs traded can be linked to blockchain games like 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 full of activity.
“The DApp industry continues to show a strong upward trend in activity. This month, average daily Unique Active Wallets (dUAW) reached 17 million, marking a new record and reflecting a 9% increase from the previous month.”
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Generated image: Midjourney