DeFi TVL Hits $192B in May, Despite 21% Drop in Active Wallets
- There was a 21% drop in the number of distinct active wallets using DeFi.
- With a total of $130 billion, or 68% of the total, Ethereums TVL topped.
In May, the largest amount since February 2022the total value locked (TVL) in decentralized finance (DeFi) applicationsreached $192 billion, according to a report by blockchain analytics company DappRadar. There was a 21% drop in the number of distinct active wallets using DeFi, even though TVL increased.
May saw a 17% increase in the USD value of cryptocurrencies locked inside DeFi apps, driven by rising token and Ether (ETH) values. With a total of $130 billion, or 68% of the total, Ethereums TVL topped the DeFi market among all networks. In second place, with $10.9 billion, or 5.7% of the total, was Solana (SOL). There was a 14 percent rise in Solanas DeFi TVL over the prior month.
Investors Optimistic
The DeFi sector saw a decline in the number of daily unique active wallets (UAW), suggesting that the user-base is contracting even as the remaining users are increasing their deposits or seeing the value of their portfolios rise, despite the robust growth in TVL. A 21% drop to 1.75 million UAW for the month was reported, accounting for 17% of the total UAW for all Web3 applications coupled.
According to DappRadar, the short-term speculation around the potential launch of an Ethereum exchange-traded fund was the reason for the TVL spike. The 24-hour trade volumes on decentralized exchanges surged from $1.7 billion to $5.1 billion between October 1, 2023, and June 7, 2024, as reported by DeFi Llama. This may have caused liquidity providers and lenders to earn more money, which would explain why they put more cryptocurrency into DeFi applications.
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Read more: https://thenewscrypto.com/defi-tvl-hits-192b-in-may-despite-21-drop-in-active-wallets/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
