Total value locked (TVL) in decentralized finance (DeFi) applications reached $192 billion in May, the largest figure since February 2022, according to a report from the blockchain analytics platform DappRadar. Despite the increase in TVL, the number of independently operated wallets (UAWs) using DeFi decreased by 21%.
The USD value of cryptocurrencies locked in DeFi applications increased 17% in May, driven by increases in the price of ETH and other tokens. Of all the networks, Ethereum dominates the DeFi market with a TVL reaching $130 billion, or 68% of the total. Solana ranked second with 10.9 billion USD, accounting for 5.7% of the total. Solana's DeFi TVL increased 14% month over month.
Total DeFi Value Locked from May 2023 to May 2024 | Source: DappRadar
Despite the sharp increase in TVL, the DeFi industry has seen a decline in the number of daily UAWs, suggesting that the user base is shrinking while remaining users are depositing more funds or their portfolio value is decreasing. increase. UAWs decreased 21% to 1.75 million during the month, or 17% of UAWs for all Web3 applications combined.
DappRadar attributes the increase in TVL to short-term speculation surrounding the possibility of a spot Ethereum ETF. They stated, “UAW DeFi is down, which means most transactions are speculative based on the ETH ETF.”
According to DefiLlama, the 24-hour trading volume of decentralized exchanges increased from $1.7 billion to $5.1 billion between October 1, 2023 and June 7, 2024. This has may have led to higher yields for liquidity providers and lenders, causing them to deposit more crypto into DeFi applications. This was also the time when Bitcoin and Ether ETFs were widely discussed.
Decentralized trading volume from October 2023 to June 7, 2024 | Source: DeFi Llama
While the DeFi industry saw a decline in UAW, other sectors of the Web3 market saw user growth, according to the report. The gaming industry has more than 3 million active users, an increase of 7.5% over the previous month. The number of users in nonfungible token (NFT) markets increased 11%, reaching 1.52 million UAW, and Web3 social applications reached 1.92 million UAW, an increase of 29%.
Total UAW Web3 numbers have now reached 10.4 million, according to a June 6 report. An earlier report in April said UAW had reached 7 million in Q1 2024, up from 4.3 million users in 2023.
This data shows a steady trend of increasing users for Web3 applications. However, some experts believe that onboarding is still too difficult and this will limit the future development of the industry if not improved.
Source: https://tapchibitcoin.io/tvl-defi-dat-192-ty-usd-lan-dau-tien-after-15-month-ethereum-chiem-gan-70.html
