DApp discovery and analysis platform DappRadar released a detailed report analyzing the state of the crypto market in May. It mainly covered three areas: DeFi, NFT activities, and crypto games, stating that the Terra debacle did not destroy the overall DeFi ecosystems. NFT trading volume was only down 6% from April if measured in token prices, and interest in blockchain games remained sturdy amid crypto selloffs.
DeFi is not dead
According to the DappRadar report, shared with CryptoPotato, DeFi was the most battered sector in May. The industry had a total of $117 million in total value locked (TLV), 45% less than it had at the end of April. Of all the DeFi protocols, Tron was visibly the only network to see a positive number for TLV – a 47% MoM increase – while the rest of the big projects all saw declines.
Despite the seeming weakness exacerbated by Terra’s historic collapse, the report stated that the sector is “far from dead” because it has achieved an 11% YoY growth in terms of TLV. Moreover, dominant decentralized exchange Uniswap reached the landmark of $1 trillion transaction volume in the same month.
NFT consolidates
NFT trading volume fell by 20% MoM – when measured in USD – but the number would have fallen to 6% if viewed in native NFT tokens. This shows that the bear market has not fundamentally shaken the beliefs of people in the sector, according to the report.
It’s worth noting that Solana NFTs generated $335 million across all marketplaces, growing 13% from April, defying the overall market condition. Despite the plunged floor prices of blue-chipped projects like BAYC and MAYC, the NFT space did not lose momentum as new protocols continue to attract volume from investors.
In terms of marketplaces, OpenSea’s dominance has diminished alongside increasing competition derived from the Solana-based company. Magic Eden, Atomic Hub by Wax, and more. Coinbase Marketplace has been considered a “failed experiment” as it has only generated $2.5 million since its launch on April 20 this year.
The report further noted that despite the recent contraction occurring in the NFT space, the rapidly growing sector has been in a consolidation stage since it peaked in January this year, and its engagement with non-crypto-native populations has changed the current crypto landscape.
The exposure the blockchain industry receives from NFTs puts the current crypto market in a totally different position than the conditions seen during the crypto winter of 2018. At this time, levels of engagement and enthusiasm around the industry were alarming. While the mainstream media continues to call for the bursting of the NFT bubble, market conditions in the NFT space disagree. – reads the newspaper.
Blockchain Games Remain Resisilent
Compared to DeFi or even NFTs, blockchain games suffered the least, with the number of such transactions only down 5% from April. Meanwhile, the report quoted a16z’s $4.5 billion commitment as a boost to the Metaverse and related blockchain games.
The document attributed the latest earning trend – integrating an element of gamification into physical activities – as a new incentive that integrates new players and supports the growth of the sector.
