New research by the analysis platform DappRadar has shown how far the markets for decentralized finance (DeFi) and non-fungible tokens (NFT) have grown this year.
In your “Value Stream Report” on Thursday, DappRadar reported that recent trends have seen significant growth in NFTs and blockchain video games., but that DeFi continues to generate significant value.
“Although value flows from DeFi to NFTs to some extent, it appears that both categories generate value independently.”
The research looked at Ethereum-based DeFiwhich remains the dominant force in the industry despite the emergence of competing networks like Binance Smart Chain (BSC), Solana, and Avalanche. The courage remained with Wrapped Ether (wETH) increasing by 400% since July 2020 and stablecoins Tether (USDT) and Dai increasing by 1,300% and 500% respectively over the same period.
DappRadar currently reports a total value of $ 114.8 billion, an increase of 936% over the same point in time last year. The report added that the industry’s Total Blocked Value (TVL) rose 75% between July 23 and September 5, peaking at $ 195 billion across all chains.
DappRadar suggested that using TVL was not a good way to measure movement in value.
“While the TVL is one of the most important metrics for assessing the current state of decentralized funding, it is not a metric for understanding the movement of the value stream. The TVL is completely dependent on the underlying asset, which is a wrong perspective from the point of view of value. “
At the time the research was carried out, 68% of all collateral blocked in DeFi was based on Ethereum. BSC is the second largest blockchain in terms of TVL, currently at $ 17.8 billion, or 15.5% of the total. The decentralized exchange PancakeSwap dominates DeFi in BSC with $ 8.7 billion in TVL. The third largest chain in terms of DeFi guarantee on DappRadar is Polygon at $ 2.7 billion. However, the report didn’t include data for Solana, which has blocked $ 9.5 billion, according to alternative analytics website Defi Llama.
The report finds that NFTs posted a record high in August, with total trading volumes of $ 5.2 billion.. Ethereum is also the dominant network in the NFT scene with 90% of the total volume on its blockchain.
NFT OpenSea market is the market leader, and 99.7% of its trades take place on Ethereum, even though the USD Coin (USDC), Dai, and Polygon (MATIC) platform offers options for sellers. The report concludes that the growth of NFTs has been organic and has not detracted much from the DeFi protocols’ liquidity.
“Overall, the value of DeFi appears to be growing steadily, while the NFTs generated a significant flow of value in August.”
As Cointelegraph reports, Crypto investors are shifting more of their assets to DeFi protocolsAnd while China continues to crack down on the industry, regulatory fears are growing in the United States.