New research conducted by the analytical platform DappRadar shows that decentralized finance (DeFi) and non-fungible token (NFT) revealed that its markets have recorded very serious growth this year.
The NFT and DeFi Ecosystem is Growing
In the “Value Stream Report” on September 30, the crypto analytical platform DappRadar, according to the latest trends NFTthere has been a significant growth in the ‘s and blockchain games, but DEFI has also reported that it is still generating significant value.
In the statements made on the subject, “Although the value flows from DEFI to NFTs to some extent, it seems that both categories generate value independently.” his words were used.
Research, Binance Smart Chain (BSC), Solana and Avalanche it is about Ethereum-based DEFI, which is still the dominant force in the industry despite the emergence of competing networks such as. According to the statements made, since July 2020, the value flowing into Ethereum has increased by 400%, the value flowing into Tether by 1,300%, and the value flowing into Dai by 500%.
In addition, DappRadar is currently reporting a total value of October 114.8 billion, an increase of 936% compared to the same period last year. DEC September July 23 and September 5, the sector’s TVL grew by 75% and reached a peak of $ 195 billion across all chains, the report added.
Is TVL An Accurate Metric?
However, at this point, DappRadar says that using TVL to measure value movement is not a good way, and makes the following statement:
While TVL is one of the most important metrics for assessing the current state of Decentralized Finance, it is not a metric for understanding value stream movement. TVL is completely dependent on the underlying asset, so it provides an incorrect optics from a value perspective.
On the other hand, at the time of the study’s compilation, 68% of all collateral locked in DEFI was based on Ethereum. BSC is the second largest blockchain in terms of TVL, with $17.8 billion currently locked in, or 15.5% of the total. PancakeSwap DEX, Which dominates DEFI in BSC with $8.7 billion in TVL. The third largest chain in DappRadar in terms of DeFi collateral is the $ 2.7 billion Locked Polygon.
October August, NFTs reached record volumes with a total of $5.2 billion in transactions, the report also states. Ethereum with 90% of all the volume in the blockchain, it comes across as the dominant network on the NFT scene.