Decentralised finance (DeFi) decentralised applications (dApps) have shown signs of recovery for the first time since May, with the daily average of unique active wallets (UAWs) seeing an increase 3.7% on a month-over-month basis, as per insights from a DappRadar report, according to Cointelegraph.
As per Cointelegraph, the reported rise happened due to the Flow protocol, which saw a rise of 577% UAW due to Instagram’s support of its non-fungible tokens (NFTs) and the online game Solitaire Blitz. On the other hand, Solana UAW sall a 53% fall in August compared to the previous month, while transactions fell by 68% as shown by the findings. Around 1.67 million unique wallets were connected to blockchain dApps in August, which was down by 3.52% from previous month, and 14.73% down compared to Augsut of 2021.
On the basis of information by Cointelegraph, the gaming industry accounted for over 50% of the total activity, with 847,230 UAW per day. However, the numbers have been down 11% while total number of transactions fell 12.7% month-to-month to $698 million. From a NFT perspective, UAW declined by 16.7% to 114,452, which has reportedly been the lowest since June, 2021. The overall DeFi total value locked (TVL) mentioned a drop from $250 billion at 2022’s beginning to $74.21 billion in August.
Moreover, Cointelegraph noted that the report focused on how August witnessed difficult market conditions due to the Tornado Cash crisis, which resulted in the industry TVL dropping by 10.47% to make a loss of $8.7 billion. After the sanctions, the Tornado Cash (TORN) price fell by 45% in a period of two days, and lost close to half of its market value. Ethereum chain has control of 69% of the DeFi TVL with $51.47 billion, although lost 11% last month and saw a decline of 56.63% since August, 2021.
(With insights from Cointelegraph)
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