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DeFi Has Lost 45% of Its Value Since April End: DappRadar

With the collapse of the former second-largest DeFi ecosystem – Terra and the crash of the associated LUNA token having accentuated the bear season that still affects the crypto landscape, DeFi has lost 45% of its value since the end of April, according to...

Benzinga · 06/09/2022 16:52

With the collapse of the former second-largest DeFi ecosystem – Terra and the crash of the associated LUNA token having accentuated the bear season that still affects the crypto landscape, DeFi has lost 45% of its value since the end of April, according to a report.

DappRadar’s Blockchain Industry Report for May 2022 states that since the (CRYPTO:Terra) halt, (CRYPTO: BTC) and (CRYPTO: ETH) have lost 25% and 40% of their value.

The industry’s TVL lost 45% since the end of April and is currently estimated at $117 billion. Yet, the DeFi space has gained 11% in value locked since May 2021.

Meanwhile, Justin Sun's Tron (CRYPTO: TRX) was the only blockchain DappRadar tracks to experience growth in May, having increased its TVL by 47%.

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NFT market volume down 45%

The NFT market generated $3.7bn in May, 20% down from the USD volumes registered in April. However, the volumes measured in tokens show a 6.5% decrease.

Overall, NFT market volume fell 45% to $10bn, down from $18bn in April, primarily because blue-chip collections had a tumultuous month.

For instance, the Bored Ape Yacht Club (CRYPTO:BAYC) saw its floor price plunge 38% during May, from 150 Ethereum to 93.

But the loss has been a boon for newer collections like Otherdeeds, land parcels for the BAYC metaverse game, and Goblintown, which has done $31 million in trading volume since its launch.

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Blockchain games sidestepping crash?

According to the report, investments have kept piling up in Blockchain games, with the gaming category resisting the crypto crash with only a 5% decrease in activity and 197% growth year-over-year.

In May, Dapper Labs announced a $725m fund to accelerate growth in the Flow ecosystem along with a16z’s massive $4.5bn commitment for its Crypto Fund 4, which will focus on developing blockchain projects.

Overall, blockchain gaming kept adding more adepts with dApps like STEPN or Genopets embedding a gamification element to physical activities in the move-to-earn trend. Also, Otherside, the play-to-earn BAYC metaverse project generated $760m in May, spurring virtual world NFTs to their best month with $850m.

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“The macroeconomic situation and the Terra event have accentuated the effects of the bear season, dragging crypto prices down along with a slight decrease in enthusiasm for the industry. Still, it is a positive signal that user adoption and the number of web3 developers are rising,” DappRadar states.

“Likewise, it is encouraging to see that the dApp industry has matured into a multi-chain ecosystem able to resist an adverse event of the magnitude of Terra,” it adds.