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DeFi and NFT Remain Resilient Despite FTX Crash: DappRadar

DeFi and NFT Remain Resilient Despite FTX Crash: DappRadar

The effects of the FTX crash were devastating and the market is poised for more losses. But according to a recent DappRadar report, Web3 remains resilient.

Centralized services lose. With the spread of the infection, the decentralized finance (DeFi) sector has also suffered. But the activity of users in this sector seems to be returning to the level of the previous month.

State of DeFi

According to a recent Dapp Radar report provided by Crypto Potato, the total value locked (TVL) on DeFi platforms has dropped over 20% since the beginning of the month, from $83 billion to $65 billion. Market leader Ethereum’s TVL fell from $51 billion on Nov. 1 to $41 billion on Nov. 13, marking a 14% decline.

ETH staking yields increased by over 10.6% at the largest liquid staking provider on the network, Lido, the highest ever. However, stETH has lost its peg to ETH and is currently trading at 0.9883.

BNB’s TVL also suffered the same fate, dropping 14% to hit $7.3B, while this Tron’s TVL dropped over 25%, dropping from $6.1B to $4.6B. Other networks such as Avalanche, Polygon, and Arbitrum also recorded TVL declines of 25.06%, 8.76%, and 10.26%, respectively.

However, the biggest loser in terms of USD TVL is the Solana blockchain, which has cut its TVL by almost 65% from a whopping $1.65 billion to $585 million.

On the other hand, the decentralized applications (DApp) sector continues to grow despite the FTX scandal. The report showed that the number of unique active wallets (UAW) in the industry decreased by 11.67% and reached an average of 1.9 million dUAW in November. On the contrary, the total number of transactions decreased by only 0.28%, reaching 26 million.

DeFi UAW, on the other hand, peaked on November 9 and 10, hitting nearly 500,000 UAW on both days. This coincided with the breakup of FTX. But data suggests that DeFi activity has now returned to the previous month’s level of 400k dUAW.

Dapp Radar noted that the subsequent collapse of the now bankrupt cryptocurrency exchange appeared to have had little impact on gaming dapps, with the number of UAWs skyrocketing to 900,000 on Nov. 10.

At the same time, activity on the gaming networks EOS, Hive, Wax, Ronin and IMX remained largely unchanged and did not undergo significant fluctuations.

State of the NFC

Dapp Radar noted that social and economic factors are to blame for the low trading volume in the NFT market, and not a slowdown in collector interest. In the first two weeks of November, sales dropped by just over 24%. Since the beginning of the month, NFT trading volume on most blockchains has plummeted.

Ethereum NFT daily trading volume was down 73.75%, dropping from $17 million to $4.4 million. Flow figures have declined by 67% over the same time period. Polygon’s daily NFT trading volume also started the month with a daily NFT trading volume of $307,830, which was down 67% to $101,375 by Nov. 13. At the same time as Flow, Polygon’s daily NFT trading volume also fell from $235,794 to $114,465.

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Written by khirou

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