DeFi, NFT Remain Resilient Despite FTX Implosion: DappRadar

The fallout from FTX’s collapse has been devastating, and the market is poised for more losses. But according to a recent report from DappRadar, Web3 remains resilient.

Centralized services are on the losing side. With the contagion unfolding, the decentralized finance sector (DeFi) has also been affected. But user activity in the sector appears to be returning to levels from last month.

DeFi state

According to a recent Dapp Radar report shared with The crypto potato, the total value locked (TVL) across DeFi platforms has plunged over 20%, from $83 billion to $65 billion, since the beginning of the month. The TVL of the market leader – Ethereum – fell from $51 billion on November 1 to $41 billion on November 13, recording a 14% decline.

ETH staking returns have increased by over 10.6% in the network’s largest liquid staking service provider – Lido – converted to the highest ever recorded. However, stETH lost its peg to ETH and is currently trading at 0.9883.

BNB’s TVL also suffered a similar fate, falling 14%, reaching $7.3 billion, while Tron’s TVL fell by over 25%, falling from $6.1 billion to $4.6 billion. Other networks, such as Avalanche, Polygon, and Arbitrum, also recorded a TVL decrease of 25.06%, 8.76%, and 10.26%, respectively.

However, the biggest loser, in terms of TVL in USD, is the Solana blockchain which cuts TVL by almost 65% from a whopping $1.65 billion to $585 million.

On the brighter side, the decentralized application (DApp) sector continues to go strong despite the FTX scandal. The report revealed that unique active wallets (UAW) in the industry recorded a decrease of 11.67% and reached an average of 1.9 million dUAW in November. In contrast, the total number of transactions fell by just 0.28% to reach 26 million.

DeFi UAW, on the other hand, peaked on November 9 and 10, reaching nearly 500,000 UAW on both days. This coincided with the FTX resolution. But data suggested that DeFi activity is now back to the levels of last month – 400K dUAW.

Dapp Radar noted that the subsequent meltdown from the now-bankrupt crypto exchange appears to have had little effect on gaming dapps, its UAW skyrocketing on November 10 all the way to 900,000.

Meanwhile, activity in the EOS, Hive, Wax, Ronin and IMX gaming chains remained largely unaffected and did not experience any significant fluctuations.

The state of NFTs

Dapp Radar noted that the weak trading volume in the NFT market is due to socio-economic factors rather than a decline in collector interest. In the first two weeks of November, the sales count took a hit of just over 24%. Since the beginning of the month, NFT trading volume in most blockchains has fallen.

Ethereum’s daily NFT trading volume recorded a 73.75% decrease, falling from $17 million to $4.4 million. Figures for Flow decreased by 67% during the same time frame. Polygon’s daily NFT trading volume also began the month with a daily NFT trading volume of $307,830, and by November 13th it had dropped 67% to $101,375. During the same timeframe as Flow, the daily volume of NFT trading for Polygon also fell from $235,794 to $114,465.