FTX story is yet to reach conclusion, the appetite for Web 3 is still high.
The fallout from FTX’s collapse has been devastating, and the market is poised for more losses. But according to a recent report by DappRadar, Web3 remains resilient.
Centralized services are on the losing side. With the contagion unfolding, the decentralized finance (DeFi) sector, too, has been impacted. But the user activity in the sector appears to be returning to levels from the previous month.
According to a recent Dapp Radar report shared with CryptoPotato, the total value locked (TVL) across DeFi platforms has plunged over 20%, from $83 billion to $65 billion, since the beginning of the month. The TVL of the market leader – Ethereum – fell from $51 billion on November 1 to $41 billion on November 13, noting a 14% decrease.
The ETH staking yields have increased by over 10.6% in the network’s largest liquid staking service provider – Lido – translating to its highest ever recorded. However, stETH lost its peg to ETH and is currently trading at 0.9883.
BNB’s TVL also suffered a similar fate and was down 14%, reaching $7.3 billion, while that Tron’s TVL was down by over 25%, decreasing from $6.1 billion to $4.6 billion. Other networks, such as Avalanche, Polygon, and Arbitrum, also recorded a TVL decrease of 25.06%, 8.76%, and 10.26%, respectively.
The biggest loser, in terms of TVL in USD, is, however, the Solana blockchain slashing its TVL by nearly 65% from a whopping $1.65 billion to $585 million.
On the brighter side, the decentralized applications (DApp) sector keeps going strong despite the FTX scandal. The report revealed that unique active wallets (UAW) in the industry noted a decline of 11.67% and hit an average of 1.9 million dUAW in November. Contrastingly, the total number of transactions decreased by only 0.28%, reaching 26 million.
DeFi UAW, on the other hand, peaked on November 9 and 10, reaching nearly 500,000 UAW on both days. This coincided with the FTX unraveling. But data suggested that DeFi activity is now back to its levels from the previous month – 400K dUAW.
Dapp Radar noted that the subsequent meltdown from the now-bankrupt crypto exchange appears to have had little effect on gaming dapps, its UAW skyrocketing on November 10 all the way to 900,000.
Meanwhile, activity in gaming chains EOS, Hive, Wax, Ronin, and IMX remained mostly remained unfazed and did not face any significant fluctuations.
Dapp Radar noted that the lackluster trading volume in the NFT market has socio-economic factors to blame rather than a slowdown in collector interest. In the first two weeks of November, the sales count took a hit by a little over 24%. Since the beginning of the month, NFT trading volume in most blockchains has slumped.
Ethereum’s daily NFT trading volume noted a decline of 73.75%, falling from $17 million to $4.4 million. Figures for Flow decreased by 67% during the same time frame. Polygon’s daily volume of NFT trading also began the month with a daily NFT trading volume of $307,830, and by November 13, it had decreased by 67% to $101,375. During the same time frame as Flow, the daily volume of NFT trading for Polygon also dropped from $235,794 to $114,465.
Chayanika has been working as a financial journalist for three years. A graduate in Political Science and Journalism, her interest lies in regulatory implications with a focus on technological evolution in the crypto realm. Contact:Linkedin
Sign-up FREE to receive our extended weekly market update and coin analysis report
