DeFi
DeFi TVL hits 192 billion in May amid decline in active wallets
Total value locked (TVL) in decentralized finance (DeFi) applications jumped to $192 billion in May, the highest since February 2022, according to DappRadar. The rise was due to the rising prices of Ether and other tokens. However, the number of unique active wallets (UAWs) in DeFi saw a 21% decline, falling to 1.75 million, or 17% of the total UAW for Web3 applications.
Source: DappRadar
Ethereum dominated the DeFi market with a TVL of $130 billion, or 68% of the total. Solana follows with $10.9 billion, or 5.7% of the total. Solana’s DeFi TVL increased by 14% from the previous month, demonstrating strong performance.
DappRadar attributed the increase in TVL to speculation around a potential Ethereum exchange-traded fund (ETF). This speculation led to a rise in the US dollar value of cryptocurrencies locked in DeFi applications, which increased by 17% in May. ChallengeLlama reported that 24-hour trading volumes on decentralized exchanges increased from $1.7 billion to $5.1 billion between October 2023 and June 2024, leading to higher returns for liquidity providers.
The gaming sector reported more than 3 million active users, an increase of 7.5% from the previous month. NFT marketplace users increased 11% to 1.52 million, and Web3 social media apps saw a 29% increase, reaching 1.92 million UAW. Overall, the total number of UAW Web3 reached 10.4 million.
Recently, decentralized finance (DeFi) protocols have saw a surge, with total value locked (TVL) increasing 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 top protocols, Lido Finance holds approximately $29.21 billion, an increase of 1.49%. 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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