New data from business intelligence firm DappRadar reveals that the total value locked (TVL) in decentralized finance (DeFi) fell during the month of August.
In its August 2024 industry report, the crypto analytics platform reveals that while the past month saw a record number of crypto wallets interacting with decentralized applications (DApps), TVL in DeFi and non-fungible token (NFT) trading volume saw significant declines.
According to DappRadar, TVL in DeFi dropped by 14% compared to 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 general market trends. However, the DeFi sector remains a top investment area, accounting for 25% of total funding this month, with $196 million raised.
NFT trading volume continued its downward trajectory, hitting a yearly low of $471 million, down 16% from the previous month. Despite this, NFT sales increased by 17%, indicating that while more NFTs are being traded, their average prices have fallen significantly – now five times lower than in March 2024, when the market peaked.
According to DappRadar, the DeFi slowdown can be attributed to the volatility of tokens, particularly Ethereum (ETH), which has seen a 22% drop since the beginning of the month.
According to the intelligence firm, the rise in the number of NFTs traded can be linked to blockchain games such as 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 bustling with activity.
“The DApp industry continues to demonstrate a strong upward trend in activity. This month, the average daily number of unique active wallets (dUAW) reached 17 million, marking a new record and reflecting a 9% increase from the previous month.”
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