Dapp discovery and analysis platform DappRadar released a detailed report analyzing the state of the crypto market in May. It mainly covers three areas: DeFi, NFT activity, and crypto gaming, noting that Terra’s debacle did not disrupt the entire DeFi ecosystem. If measured by token prices, NFT transaction volume is only down 6% from April, and interest in blockchain gaming remains strong amid the cryptocurrency sell-off.
DeFi is not dead
According to a report shared by DappRadar with CryptoPotato, DeFi was the hardest hit industry in May. The industry’s total locked value (TLV) was $117 million, 45% lower than the record as of the end of April. Of all the DeFi protocols, Tron was apparently the only network with a positive TLV – up 47% month-on-month – while other major projects experienced declines.
While Terra’s historic collapse added to what appeared to be weakness, the report noted that the industry is “far from dead” as its TLV has seen 11% year-over-year growth. Additionally, the dominant decentralized exchange Uniswap reached the $1 trillion trading volume milestone in the same month.
NFTs are consolidating
NFT volumes fell 20% month-over-month — measured in U.S. dollars — but if you look at the NFT’s native token, that figure would drop to 6%. This suggests the bear market has not fundamentally shaken belief in the industry, the report found.
It is worth noting that Solana NFTs generated $335 million across all markets, a 13% increase from April and a departure from overall market conditions. DWhile the floor prices of blue-chip projects such as BAYC and MAYC have plummeted, the NFT space has not lost momentum as new protocols continue to attract investor trading volume.
On the market side, OpenSea’s dominance declines as Solana-based competition intensifies Magical Eden, Wax’s Atomic Center, and more. Coinbase Marketplace is considered a “failed experiment” as it has only generated $2.5 million since its launch on April 20 this year.
The report further states that despite the recent contraction in the NFT space, the fast-growing industry has been in a consolidation phase since peaking in January this year, and its exposure to non-crypto-native populations has changed the current crypto landscape.
The exposure the blockchain industry has gained from NFTs makes today’s crypto market completely different from what it was during the crypto winter of 2018. In those days, engagement and enthusiasm across the industry was surprisingly low. While the mainstream media is constantly calling for the NFT bubble to burst, the market conditions in the NFT field are not the same. – Read papers.
Blockchain games remain resilient
Compared to DeFi and even NFTs, Blockchain games were least affected, with the number of such transactions down just 5% from April. Meanwhile, the report cites a16z’s $4.5 billion commitment as a boost for Metaverse and related blockchain games.
The document attributes the latest earnings trends – Embedding gamification elements in sports activities – as a new incentive to attract new players and sustain the growth of the industry.
Binance Free $100 (Exclusive): Use this link to sign up and get $100 for free and a 10% fee discount on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register and enter code POTATO50 to get a deposit of up to $7,000.