DeFi and NFT Markets Experience Significant Declines in August: DappRadar Report
Sep 7, 2024
2 min read
New data from market intelligence firm DappRadar reveals a significant downturn in the decentralized finance (DeFi) and non-fungible token (NFT) markets for August 2024. The total value locked (TVL) in DeFi dropped by 14%, while NFT trading volume fell by 16%, reaching a yearly low.
Key Takeaways
DeFi TVL dropped by 14% to $144 billion.
NFT trading volume decreased by 16% to $471 million.
Number of NFTs traded increased by 17%.
Average daily Unique Active Wallets (dUAW) reached 17 million, a new record high.
DeFi Market Analysis
According to DappRadar's industry report, the TVL in DeFi fell to $144 billion, marking a 14% decline compared to the previous month. This drop aligns with broader market trends and is attributed to the volatility of tokens, particularly Ethereum (ETH), which saw a 22% drop since the start of the month.
Despite the downturn, the DeFi sector remains a significant area for investment, accounting for 25% of total funding in August, with $196 million raised.
NFT Market Trends
NFT trading volume continued its downward trajectory, reaching a yearly low of $471 million, down 16% from the previous month. However, the number of NFTs being traded increased by 17%, indicating that while more NFTs are being traded, their average prices have fallen significantly. The average price of NFTs is now five times lower than in March 2024, when the market peaked.
The spike in the number of NFTs traded can be linked to blockchain games such as Gods Unchained and Guild of Guardians, which have become some of the most actively traded communities.
DApp Industry Activity
Despite the declines in DeFi and NFT markets, the DApp industry itself is experiencing a strong upward trend in activity. The average daily Unique Active Wallets (dUAW) reached 17 million in August, marking a new record high and reflecting a 9% increase from the previous month.
Conclusion
While the DeFi and NFT markets faced significant declines in August 2024, the overall activity in the DApp industry remains robust. The increase in the number of NFTs traded and the record high in daily Unique Active Wallets suggest that the market is still vibrant, albeit with shifting dynamics.
Sources
DeFi Total Value Locked Plummets by 14% in August and NFT Trading Volume Drops by 16%: DappRadar - The Daily Hodl, The Daily Hodl.
DeFi Total Value Locked Plummets by 14% in August and NFT Trading Volume Drops by 16%: DappRadar, CryptoRank.