The total value locked (TVL) in decentralized finance (DeFi) applications surged to $192 billion in May, the highest since February 2022, according to DappRadar. The surge was due to higher prices of Ether and other tokens. However, the number of unique active wallets (UAW) in DeFi saw a 21% decline, dropping to 1.75 million, which is 17% of the total UAW for Web3 applications.
Source: DappRadar
Ethereum dominated the DeFi market with a TVL of $130 billion, accounting for 68% of the total. Solana followed with $10.9 billion, representing 5.7% of the total. Solana’s DeFi TVL increased by 14% over the previous month, showcasing strong performance.
DappRadar attributed the TVL increase to speculation surrounding a potential Ethereum exchange-traded fund (ETF). This speculation led to a rise in the U.S. dollar value of cryptocurrencies locked in DeFi applications, which grew by 17% in May. DefiLlama reported that 24-hour trade volumes on decentralized exchanges jumped from $1.7 billion to $5.1 billion between October 2023 and June 2024, driving higher yields for liquidity providers.
The gaming sector reported over 3 million active users, a 7.5% increase from the previous month. NFT marketplace users rose by 11% to 1.52 million, and Web3 social media apps saw a 29% increase, reaching 1.92 million UAW. Overall, the total number of Web3 UAW reached 10.4 million.
Recently, decentralized finance (DeFi) protocols have seen a surge, with the total value locked (TVL) rising by $11.89 billion. As of May 18, the TVL reached $94.974 billion, according to defillama.com. Notably, Perfectswap experienced a complete decline with a 100% reduction in its TVL. Among the major protocols, Lido Finance holds approximately $29.21 billion, a 1.49% increase. Eigenlayer reported $15.40 billion in TVL. Other protocols such as MakerDAO, Justlend, and Aave also saw an increase of 7.95%, 4.95%, and 9.22%, respectively.
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