In a study published on September 30th entitled “Value Flow Report”, the crypto (DeFi) analysis platform DappRadar report that NFT and blockchain gaming have seen incredible growth lately, but DeFi is still creating significant value.
“While the value of DeFi flows to NFT to some extent, it appears that both create value independently.”
DappRadar’s research is on 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 flow into wrapped Ethereum, up 400% since July 2020, and stablecoins like Tether (USDT) and Dai rose 1,300% and 500%, respectively, over the same period.
The Total Locked Value (TVL) was $ 114.8 billion, up 936% year over year, according to DappRadar. The report adds that the industry’s TVL rose 75% from July 23 to September 5, peaking at $ 195 billion across all networks.
DappRadar has suggested that using TVL to measure value movement is not the best way to go.
“While TVL is one of the important metrics for assessing the current state of DeFi, it is not an accurate metric for understanding the movement of value flows. TVL is completely dependent on the underlying asset and therefore offers an imprecise view from a value point of view. ”
At the time of DappRadar’s research, 68% of the assets locked in DeFi are based on Ethereum. BSC is the second largest blockchain with $ 17.8 billion in TVL, or 15.5%, with DeFi-dominated PancakeSwap exchange on BSC reaching $ 8.7 billion in TVL. Polygon is the third largest blockchain at $ 2.7 billion TVL. However, DappRadar is not reporting Solana blockchain data, which, according to analytics website, hits $ 9.5 billion DeFiLama.
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 network that dominates the NFT with 90% of the transaction volume.
OpenSea is a leader in the NFT market and 99.7% of transactions take place on Ethereum, although it also has options such as USDC, DAI and Polygon (MATIC) for traders. 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 as NFTs could generate massive value flows in August.”
As Cointelegraph reported, investors are shifting their assets to DeFi and DEX protocols as China continues to suppress the market and regulatory concerns mount in the United States.
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According to Cointelegraph