New research by the analytics platform DappRadar has revealed how the decentralized finance and token-free (NFT) markets have performed this year. DeFi
30, crypto analytics platform DappRadar reported that recent trends have seen significant growth in NFTs and blockchain gaming, but DeFi is still creating significant value.
“While value flows from DeFi to NFT to some extent, it appears that both categories create value independently.”
The research has looked at Ethereum-based DeFi, which remains the dominant force in the field despite the emergence of competing networks like Binance Smart Chain (BSC), Solana, and Avalanche. The value has continued to rise, with Ethereum up 400% since July 2020 and the stablecoins Tether and Dai up 1,300% and 500% respectively over the same period.
DappRadar now reports a total value of 114.8 billion US dollars, an increase of 936% over the same point in time last year. The report adds that the industry’s TVL rose 75% between July 23 and September 5, hitting a high of $ 195 billion across all chains.
DappRadar has suggested that using TVL is not a good way to measure value movement.
“While the TVL is one of the most important metrics for assessing the current state of distributed finance, it is not a yardstick for understanding the movement of value streams. TVL is completely dependent on the underlying asset, so it offers a misleading perspective from a value standpoint. “
At the time the research was compiled, 68% of all collateral blocked in DeFi is based on Ethereum. BSC is the second largest blockchain in terms of TVL with $ 17.8 billion currently locked down, or 15.5% of the total. PancakeSwap DEX dominates DeFi on BSC with $ 8.7 billion TVL. The third largest chain of DeFi collateral on DappRadar is Polygon with a $ 2.7 billion lockdown – however, the report doesn’t include data for Solana, which has instead locked up $ 9.5 billion, according to the analytics site.
The report notes that the NFT hit a record volume in August with a total transaction value of $ 5.2 billion. Ethereum is also the dominant network in the NFT scene with 90% of the volume on its blockchain.
Related: OpenSea Trading Volume Up 76,240% YTD Amid NFT Boom
NFT Marketplace OpenSea leads the market and 99.7% of its transactions are on Ethereum, although the platform offers USDC, DAI and Polygon (MATIC) options for merchants. The report concludes that NFT’s growth is organic and does not have a major impact on DeFi protocols liquidity.
“Overall, it looks like the value of DeFi is rising while NFT could generate a massive value stream in August.”
As Cointelegraph reports, crypto investors are shifting a greater chunk of their assets to DeFi protocols as China continues to crack down on concerns about increasing industry regulation in the US.