DeFi DApps Activity Rises by 3.7% in August — Report

The DeFi dapps saw a slight recovery, with the monthly average of unique active wallets increasing by 3.7%, according to DappRadar.

The Flow protocol was partly responsible for the rise, which rose 577% UAW thanks to Instagram’s support for its NFTs. The findings revealed that Solana UAW declined by 53% over August, while transactions fell by 68%.

In August, there were 1.67million unique wallets that were connected to blockchain DApps. This is down 3.52% compared to last month and down 14.73% compared with August 2021.

Source: DappRadar

Gaming accounted for more than 50% of activity usage. There were 847,230 daily UAW and $698 million in transactions. However, it is down 11% month-to-month. The UAW for NFT fell 16.7% to 114,542, the lowest level since June 2021 according to the report.

Despite the DeFi increase of unique active wallets (TVL), the overall DeFi total valued locked (TVL), still saw a significant decline; it dropped from $250 billion at 2022’s beginning to $74.21 million in August.

“The TVL was at its lowest point in April 2021 when the space was just starting to gain momentum.” This means that the DeFi TVL is down by at least 56% since August 2021.

According to the report, August was “particularly difficult” for the market due to the Tornado Cash Crisis. The industry TVL fell by 10.47% to $8.7 billion. The U.S. Treasury Department charged the cryptocurrency mixer platform with laundering more than $7B in cryptocurrencies, including $455M allegedly stolen from North Korean hackers.

The price of Tornado Cash ( TORN ) plunged by 45% within two days. It lost almost half its market value.

According to the report, 69% of DeFi TVL’s $51.47 billion is controlled by Ethereum chain. However, it lost 11% in August and has dropped 56.63% from August 2021. The growth of Layer-2 protocols that are based on Ethereum was mainly driven by the upcoming Ethereum Merge. Optimism increased 57.61% in august for a $1 million total locked value. Arbitrum rose 14.36% and Polygon gained 6.50% month to month.

Opinion writer on 7trade7