New research by analytics platform DappRadar reveals how much the decentralized finance (DeFi) and unique token (NFT) markets have grown this year.
With its “Value Stream Report” released on September 30, crypto analytics platform DappRadar revealed that while NFT and blockchain-based games have seen significant growth, DeFi continues to deliver significant value.
“While some of the total money flows from DeFi to NFT, both categories appear to generate value independently.”
The research looked at the Ethereum-based DeFi industry, which remains the dominant force in the industry despite the rise of rival networks such as Binance Smart Chain (BSC), Solana (SOL), and Avalanche. While the total value transfer has increased by 400 percent on Ethereum since July 2020, stablecoins Tether (USDT) and Dai, which increased by 1,300 and 500 percent, respectively, in the same period came to the fore. .
The total locked value reached $ 114.8 billion, up 936 percent from the same period last year, according to data from DappRadar. The report added that the industry’s total fixed value grew 75 percent from July 23 to September 5, reaching a peak of $ 195 billion across all chains.
DappRadar added that TVL data is not a good way to measure value movement.
“While TVL is one of the most important metrics to assess the current state of decentralized finance, it is not an adequate metric to understand the movement of the value stream. TVL is completely dependent on the underlying asset, thus presenting the wrong approach from a perspective of value. “
At the time the research was compiled, 68 percent of all collateral locked in the DeFi industry was based on Ethereum. BSC is the second largest blockchain in terms of TVL with $ 17.8 billion currently blocked, or 15.5 percent of the total. PancakeSwap DEX dominates the DeFi market in BSC with $ 8.7 billion TVL. The third largest chain in terms of DeFi coverage on DappRadar is Polygon, with a locked value of $ 2.7 billion. However, the report did not include data from Solana, which reached a locked value of $ 9.5 billion, according to alternative analytics site Defi Llama.
The report noted that NFTs generated record volumes, totaling $ 5.2 billion in transactions in August. Ethereum is a threat to other blockchain networks by owning 90 percent of the entire NFT market.
Related: New DeFi Stable Coin Coming to the Cardano Blockchain
The NFT OpenSea market is the market leader. On the platform, which offers USD Coin (USDC), DAI and Polygon (MATIC) options for traders, 99.7 percent of their transactions are made with Ethereum. The report concluded that NFT’s growth is organic and not much liquidity is leaking from DeFi protocols.
“Overall, while NFTs managed to generate a huge flow of value in August, the value of DeFi appears to be steadily increasing.”
As Cointelegraph reported, crypto investors are moving most of their assets to DeFi protocols due to looming regulatory fears in China and the US.