The decentralized finance industry has seen significant growth over the year. According to DappRadar, the total value of cryptoassets blocked in DeFi apps has grown by 936% in 12 months.
In its latest report, cryptocurrency analytics platform DappRadar reported that a large number of cryptoassets are still flowing into the decentralized finance (DeFi) protocols, despite recent trends driving significant growth in NFT and blockchain gaming.
“While cash flow is flowing from DeFi to NFT to some extent, it looks like both categories generate it independently.”
The study focused on the DeFi protocols on Ethereum, which remains the dominant network in the sector despite the emergence of DeFi applications on rival networks such as Binance Smart Chain, Solana, and Avalanche.
According to DappRadar, the total value of cryptoassets blocked in DeFi apps is $ 114.8 billion, up 936% from a year ago. Between July 23 and September 5, the figure rose 75%, peaking at $ 195 billion across all networks, according to the report. However, analysts at DappRadar suggest that using this metric is not the best way to measure the movement of money in the industry.
“While the total value of frozen assets is one of the most important metrics for assessing the current state of decentralized finance, it is not a suitable metric for understanding cash flow. The total value of blocked assets depends entirely on the underlying asset, which gives a false impression in terms of the total amount of money being transferred. ”
At the time of this report, 68% of all cryptoassets blocked in DeFi were in protocols on Ethereum. BSC is the second most popular blockchain by this indicator, DeFi applications on BSC have $ 17.8 billion in crypto assets blocked. PancakeSwap DEX dominates BSC DeFi applications with $ 8.7 billion. Polygon is in third place in terms of the value of blocked crypto assets with $ 2.7 billion. However, the report does not included data for Solana, which has $ 9.5 billion blocked in apps, according to alternative analytics site DeFiLlama.
Record NFT trading volumes of $ 5.2 billion were recorded in August, according to the report. Ethereum remains the dominant network in the NFT market as well, where 90% of FIFO transactions take place. OpenSea is the market leader and 99.7% of the site’s transactions take place on Ethereum, despite the platform offering merchants support from other networks as well. According to analysts, the rise in NFT was natural and did not drain a lot of liquidity from the DeFi protocols.
“Overall, it looks like DeFi’s cash flow is growing steadily while the NFT industry generated major cash inflows in August.”
After the expansion of the ban on cryptocurrencies in China, the price of DEX tokens has grown significantly, and trading volumes in some DeFi protocols have exceeded the volumes of large centralized exchanges.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
