Introduction
The Defi is one aspect of blockchain technology that continues to record unprecedented growth in recent times. It may not be obvious how far the space has grown until one reviews the stats gathered from activities in the Defi ecosystem.
DappRadar is a tool that helps to appreciate the numbers in terms of growth in DEFI. It is an analytical platform for Defi. In this month of May, the platform has put together interesting data regarding various aspects of Defi like NFT markets, gaming ecosystems and the rest. In this publication, we want to appreciate the key stats from this Defi data aggregation for the month of May 2024. Below are the key stats to take home.
$192 billion - TVL of Defi tokens
The worth of Defi sector is often expressed in terms of TVL. This stands for Total Value Locked. It is the entire amount of investment on a defi platform or the ecosystem as a whole. Users often stake their crypto in order to participate in various aspects of defi. According to the stats from DappRadar, the month of May 2024 saw a 17% leap in the amount of TVL for Defi. $192 billion worth of tokens were staked across all defi platforms and this represents significant growth.
The bullish sentiment of the entire crypto market has been reflected well in defi. Significantly, Ethereum blockchain has been leading the growth with a rice in the price of Ethereum. Many other tokens in the defi ecosystem have recorded significant increases in price. Also the launching of many new and growing defi protocols all contributed to this surging drive of TVL in Defi in May 2024.
10.4 million - Active Wallets
Another important metric to access the rate of adoption in the defi space is Unique Active Wallets (UAW). This unit measures the number of wallets in the DEFI space that performs any sort of transaction each day. Such activities might include swaps, buying tokens, staking, participating in yield farms, and so on. For the month of May, there were 10.4 million such wallets that engaged a transaction in one way or the other.
There are many products of defi that accounted for this massive surge in user numbers. The field of gaming took top spot. Its not surprising because the defi space has seen a great number of user participation in Web3 games. In recent times, a large number of new users have joined the defi space through popular tap-to-earn games. Other forms of gaming in Web3 continues to attract a large crowd of new users alike.
$52 million - value lost to scams and hacks
The Defi sector like every other aspect of crypto is full of risks. There have been fraudulent events and projects that have lead to loss of massive value of investments. In the month of May, $52 million was lost as a results of Defi protocol breaches and fraudulent projects. There are many pump and dump schemes in the space and many users have fallen victim to the criminals. There have also been exploitation of smart contracts that lead to a massive loss of funds in the space. All this put together amounted to $52 million and it is such a significant number.
One of the most significant data breaches involves Gala games. Below is a brief detail of the event:
Gala Games experienced a security incident on May 20, where a hacker exploited an access control vulnerability in the GALA token contract. The hacker seized control of an admin address and minted 5 billion GALA tokens worth $216 million. They quickly sold 592 million tokens for $21.8 million in ETH on decentralized exchanges like Uniswap and 0xProject, causing the token’s price to drop by 20% source
The above exploitation of the Gala ecosystem was not an isolated event. There were many others similar to it. Together, they accounted for the $52 million lost to hacking and scams in the defi space in May.
Solana is not the top performing blockchain
The memecoin craze has been raging on for some time now and so many new projects have emerged. Solana blockchain seem to be a popular destination blockchain for most of these new memecoins. But according to this May 2024 analytics from DappRadar, Solana came in the 4th position behind Arbitrum in 3rd postion and Polygon in 2nd position. The best performing blockchain in defi is NEAR protocol.
NEAR has been made popular in part because of HOT Game, a mobile wallet launched in Telegram messaging app which has driven adoption of crypto in recent months with its large userbase. The wallet allows users to mine HOT after creating an account. According to data from DappRadar, Hot game has processed more than 130m transactions in the last 30 days.
Gaming Dapps are top performers in Defi
The analysis looked at where most new and active users come from. Not surprisingly, gaming Dapps gave the highest number of Unique Active Wallets. Games like MotoDEX and Boomland recorded increases and high figures in the number of active wallet interactions in the ecosystem. Check out this interesting stat below about the game Dapps:
Kai-Ching remains the leading dapp as well this month, followed by UXLINK and HOT Game. It’s interesting to see how the social sector keeps being one of the most performant ones, as the social dapps are managing to actively engage the users. Boomland recently announced a 250 million BOOM play-to-airdrop. Season 1 will begin in June, celebrating their launch on Immutable zKEVM. source
Conclusion
The Defi space is ever dynamic in the crypto space. The figures above generally signifies that there has been growth through various Dapps and projects. The gaming sector is especially interesting as more and more gaming protocols are released. You would like to get involved. Always try to learn more about each project before getting involved.
Posted Using InLeo Alpha