NFT and crypto games gave better results than DeFi among market sales in May: Report

DApp discovery and analysis platform DappRadar released a detailed report analyzing the state of the crypto market in May. It covered mainly three areas: DeFi, NFT activities and crypto games, and stated that the Terra debacle did not destroy the general DeFi ecosystems. The NFT trading volume was only down 6% from April measured in token prices, and interest in blockchain games remained stable in the middle of crypto sales.

DeFi is not dead

According to DappRadar’s report, shared with Kryptopotet, DeFi was the most beaten down sector in May. The industry had a total of $ 117 million in Total Locked Value (TLV) – 45% below what it had achieved as recorded at the end of April. Among all the DeFi protocols, Tron was noticeably the only network that registered a positive number for TLV – an increase of 47% MoM – while the rest of the large projects all experienced a decline.

Despite the apparent weakness exacerbated by Terra’s historic collapse, the report stated that the sector is “far from dead” because it has achieved 11% year-on-year growth in the form of TLV. In addition, the dominant decentralized exchange Uniswap reached the $ 1 trillion transaction mark in the same month.

NFT is consolidating

The NFT transaction volume fell by 20% MoM – measured in USD – but the number would have come down to 6% if seen in the NFT’s original tokens. It shows that the bear market did not fundamentally shake people’s convictions in the sector, the report found.

It is worth noting Solana NFTs generated $ 335 million in all marketplaces, growing 13% from April, defying the general market situation. DDespite the plummeting floor prices of projects such as BAYC and MAYC, the NFT site did not lose momentum as new protocols continue to attract volume from investors.

In terms of marketplaces, OpenSea’s dominance coincided with the increasing competition from Solana-based Magic Eden, Wax’s Atomic Hub and more. Coinbase Marketplace was seen as a “failed experiment” since it only generated $ 2.5 million since its launch on April 20 this year.

The report further noted that despite the recent contraction that occurred in the NFT area, the rapidly growing sector has been in a consolidation phase since reaching its peak in January this year, and engagement with non-crypto-native populations has changed the current crypto landscape.

The exposure that the blockchain industry receives from NFTs puts the current crypto market in a completely different position than the conditions in the crypto winter of 2018. At that time, the level of commitment and enthusiasm around the industry was alarmingly low. While the mainstream media constantly demands that the NFT bubble burst, market conditions in the NFT space disagree. – reading the newspaper.

Blockchain Games Remain Resisilent

Compared to DeFi or even NFTs, blockchain games suffered the least, with the number of such transactions only down 5% from April. Meanwhile, the a16z report cited its $ 4.5 billion commitment as a boost to Metaverse and related blockchain games.

The document attributed the latest trend to make money – to incorporate a gamification element into physical activities – as a new incentive that brings in new players and maintains the sector’s growth.