DeFi Remains Strong Despite Market Implosion: DappRadar

The Web3, NFT, and DeFi space stand resilient in the face of market collapse and the implosion of FTX crypto exchange.

The market is destined for further losses as a result of the devastation caused by FTX’s collapse. Contrarily, DappRadar found that Web3 and DeFi was still robust in its most recent analysis.

The decentralized finance (DeFi) industry has been damaged as the problems continue. However, it looks that user activity in the sector is recovering to its levels from the prior month.

In a recent Dapp Radar report, it was found that the total value locked (TVL) across DeFi platforms has decreased by more than 20%, from $83 billion at the beginning of the month to $65 billion now. The total value of Ethereum in circulation (TVL) dropped from $51 billion on November 1 to $41 billion on November 13, a reduction of 14%.

DeFi vs. Smart Contracts

The largest liquid staking service provider on the Ethereum network, Lido, has seen its ETH staking yields climb by more than 10.6 percent, reaching a new all-time high. 

While BNB’s TVL dropped 14% to $7.3 billion, Tron’s TVL dropped 25% from $6.1 billion to $4.6 billion. TVL drops of 25.06%, 8.76%, and 10.26% were also recorded by the other networks Avalanche, Polygon, and Arbitrum respectively.

However, the Solana blockchain has lost the most ground, with its TVL falling by roughly 65%, from a high of $1.65 billion to a low of $585 million.

Dapp Radar reported on November 10 that the UAW of gaming dapps had skyrocketed over $900,000, indicating that the ensuing implosion of FTX appeared to have had minimal effect on gaming dapps. Similarly, in summer this year the blockchain gaming industry has been hit by the crypto winter the least as reported by DappRadar.

Declining NFT Trading Volumes

Regarding the NFT, the majority of blockchains have seen a decline in NFT trade volume since the beginning of the month. Daily Ethereum NFT trading volume fell 73.75%, from $17 million to $4.4 million. Polygon’s daily NFT trading volume was $307,830 on October 1 and $101,375 on November 13. Polygon’s daily NFT volume fell from $235,794 to $114,465 in the same timespan as Flow.