DappRadar, a global marketplace for decentralized applications, has just released its Blockchain Business Report for July, and it shows that DeFi is on the road to recovery after the Terra crash.
Though the total number of unique active wallets (UAWs) has decreased, as of July 31st, the total worth locked (TVL) in DeFi had increased by 22% from June, reaching $82.3 billion. This increase can be attributed to the rapid development of several of the top ten DeFi blockchains.
Compared to the $67.3 billion in TVL as of June’s end, this is an increase of 22%, however it’s still a far cry from the all-time high of $253.91 billion as of December 2, 2021.
The research also shows that the total number of unique active wallets (UAW) associated with DeFi dapps has dropped below half a million, down 22% from the previous month and down 31% from the same interval one year ago, reaching its lowest level since March 21.
DeFi’s fall is representative of the sector as a whole; at the end of July, there were 1.68 million UAWs linked to dapps, down 4 percent from the previous month. Optimists, however, would point out that this is still 20% higher than the total number of UAWs associated with dapps in July 2021, partly due to the popularity of blockchain gaming.
Many other factors also give us reason to have hope. According to DappRadar’s analysis, Ethereum TVL increased from $46 billion at the end of June to $57.9 billion as of July 31. The TVL price increased across the board on the major blockchains. The total value of Binance’s Sensible Chain (TVL) increased from $5.97 billion at the start of the month to $6.8 billion on July 31. The total value of Tron’s blockchain network (TVN) increased from $3.95 billion to $5.9 billion during the same time period. Other common DeFi blockchains stood out for various reasons; Stream’s daily UAW increased by over 200% in the month after the debut of Permissionless Sensible Contract Deployment features that allow anyone to build good contracts on its mainnet.
Blockchain video games are the true winners through the bear market
The gaming “industry” was the most successful blockchain sector in July, with UAWs increasing by 8% month-over-month and 98% year-over-year.
As the ‘business’ continues to produce extra immersive and entertaining video games, it’s not shocking that there have been almost a million every day UAWs associated to sport dapps as of the end of July (967,662 every day common UAWs). As of this month, blockchain-based games accounted for 57.39% of all UAWs connected to dapps, a record high. This figure is on top of the $857 million in transactions recorded in the previous month.
In contrast, NFTs showed signs of slowing, with the industry failing to hit $1 billion in total trade volume for the first time since June 2021.2 It’s not all gloom and doom in the NFT sector, just like it isn’t in the DeFi subfield. Due to renewed interest in Solana and BSC, the report confirmed that the number of UAWs linked to NFT-related dapps increased to 130,418 by the end of the month.
OpenSea, the primary NFT market in the industry, also had a rough month in July, seeing its dominance in the market significantly erode. Competition from new entrants like Gamestop and Nickelodeon’s NFT marketplaces caused OpenSea’s market share to drop from 84% of all NFT trade volume to only 58.6% by the end of the month.
According to DappRadar’s Head of Analysis Pedro Herrera, the report paints a mixed picture of the current state of the crypto market: “On the one hand DeFi is beginning to present its first indicators of recovery with TVL surging over 20% since last month; while blockchain gaming is constant to defy the bear trend, with 60% of overall blockchain activity, an all-time high.” While NFT revenues dropped beneath $1 billion for the primary time since June of last 12 months, the variety of UAWs tied to NFT-related dapps increased to 130,418 by the end of the month, and blue-chip NFT collections like CryptoPunks carried out particularly well.
DappRadar, launched in 2018, bills itself as “The World’s Dapp Retailer,” an online marketplace for decentralized applications (dapps) that makes it simple for its 1+ million monthly users to monitor, analyze, and discover dapp activity. The platform currently hosts over 10,000 dapps over 30+ protocols and includes a wide range of user-friendly tools such as full NFT valuation, portfolio management, and daily market-leading, actionable insight.