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Blockchain News

Dapp Industry Grew by 10% in May Despite DeFi Declines

The decentralized application (dApp) industry experienced significant growth of 9.97% in May, according to the latest monthly report by DappRadar. The report revealed that the industry reached an impressive average of 1,967,051 daily unique active wallets (dUAW). The research attributed this growth to the thriving gaming sector and the expanding decentralized finance (DeFi) landscape, despite a decline in the total value locked in DeFi.

The report emphasized the promising growth and stability of the gaming and DeFi sectors, underscoring the industry’s overall importance. The gaming sector emerged as the dominant force, accounting for 36% of all dApp activity and boasting 711,913 dUAW. It witnessed a steady growth rate of 5.97% compared to the previous month. Furthermore, blockchain gaming alone dominated the transactions within the entire dApp industry with an impressive 77% share, totaling 550 million transactions.

DeFi also displayed remarkable growth, as unique active wallets increased by 18% to 607,945, granting the sector a 31% dApp market share. Conversely, social dApps, despite being the third-largest sector with a 12% dominance, experienced a 5% decline in dUAW during the same month.

However, the report highlighted a noteworthy decline in the total value locked (TVL) for DeFi in May. The TVL decreased by 4.3%, dropping to $79.16 billion. DeFiLlama, another source, reported a similar decline, estimating the TVL at $52.74 billion for the same period.

BNB Chain emerged as the market leader for dApp activity, registering an 8.68% increase to reach 532,056 dUAW. The report noted that this growth in dUAW occurred primarily in blockchains offering DeFi products, adding an exciting dynamic to the overall picture.

Among the top-performing dApps for the month, Stargate Finance stood out with over two million dUAW, surpassing PancakeSwap after experiencing a remarkable 40% increase in user base during May.

While the crypto markets witnessed a 2% decline in total market capitalization, they remained relatively stable throughout the month. The total market cap stands at $1.18 trillion, showing a 0.9% increase on the day of writing. Bitcoin (BTC) made marginal gains, surpassing $27,000 once again, while Ethereum (ETH) rose by 1.5% to $1,883.

Despite the low volumes and volatility that have constrained crypto assets within a tight range, on-chain data suggests an imminent breakout. Traders and investors eagerly anticipate the next market trend, which could bring significant opportunities and challenges for the crypto industry in the near future.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.