New research by the analysis platform DappRadar reveals how much decentralized financial and non-flagged token (NFT) markets have grown this year.
In its September 30 Value Stream report, the cryptanalysis platform DappRadar reported that recent trends have shown significant growth in NFT and blockchain games, but DeFi continues to deliver significant value.
“Although the value flows somewhat from DeFi to NFT, it seems that both classes generate value independently of each other.”
The study examined Ethereum-based DeFi, which remains the dominant force in the sector despite the emergence of rival networks such as Binance Smart Chain (BSC), Solana and Avalanche. The value has continued to rise with Ethereum with a ceiling of 400% since July 2020, while the stack coins Tether and Dai have risen 1300% and 500% respectively in the same period.
DappRadar’s current total value is $ 114.8 billion, an increase of 936% from the same period last year. The report also says that the TVL industry grew 75% between July 23 and September 5, reaching a peak of $ 195 billion across all networks.
DappRadar did not suggest that the use of TVL was not a good way to measure the movement of values.
“Although TVL is one of the most important calculations for assessing the current state of decentralized finance, it is not a calculation for understanding value stream movement. TVL is completely dependent on the underlying asset and therefore misleading in terms of value.”
At the time of this study, 68% of all private security in DeFi was built on Ethereum. BSC is the second largest blockchain for TVL with $ 17.8 billion at the moment, or 15.5% of the total. PancakeSwap DEX DeFi dominates BSC with $ 8.7 billion TVL. The third largest chain for DeFi delivery on DappRadar is Polygon with $ 2.7 billion unlocked, but the report does not include data for Solana, which has $ 9.5 billion unlocked, according to alternative analysis site DeFiLlama.
The report notes that NFT trading volumes were at a record high in August, with a total trading volume of $ 5.2 billion. Ethereum is also the dominant network in the NFT scene with 90% of the total volume on the blockchain.
RELATED: OpenSea Volume Up 76.240% YTD Amid NFT Boom
The NFT OpenSea marketplace is the market leader and 99.7% of transactions are made on Ethereum, although the platform offers USDC, DAI and Polygon (MATIC) alternatives to sellers. The report concluded that the increase in NFT was natural and did not leak much liquidity from the DeFi protocol.
“Overall, it appears that DeFi’s value continues to rise, while NFTs were able to generate significant value inflows in August.”
According to the Cointelegraph, crypto-investors are moving more of their assets to DeFi protocols as China continues to implement measures to address regulatory concerns for US industry.