Aaryamann Shrivastava
FXStreet
- DappRadar’s DeFi report for August highlighted the presence of just 1.67 million unique active wallets.
- The month of August also noted multiple exploits and hacks, which resulted in the loss of more than $211 million.
- Following the Merge, DeFi activity is expected to ramp up on Ethereum, and the same is expected out of Cardano’s Vasil hard fork.
Ethereum made Decentralized Finance (DeFi) available to the crypto space when it introduced smart contracts, and the industry since then continued to flourish at a rapid rate. However, the bear markets of January and May 2022 took a severe toll on this growth, and the DeFi market has still not completely recovered from it.
August was an equally good and bad month for Decentralized Finance
According to DappRadar’s industry report for the month of August, the current daily Unique Active Wallets (UAW) is at its lowest ever recorded figure since the beginning of this year. The drop to 1.67 million UAW marks a 3.52% decrease from July and an overall 14.73% decline from August 2021.
Active wallets throughout the market
However, FLOW emerged to be one of the better-performing DeFi chains, registering a daily average UAW increase of 577% from the previous month. This rise can primarily be attributed to the support of Flow-based NFTs on Instagram.
But along with the good came the bad, and that too in the form of exploits and attacks. This month, multiple such incidents took place, including the Solana wallet attack and the Acala & Nomad exploits. The latter occurrence was singlehandedly responsible for a majority of the $211 million losses experienced by the DeFi market.
While not an exploit, DappRadar highlighted that the sanctions on Tornado Cash also impacted the total value locked (TVL) onto dApps. Falling by 10.47% month-over-month, about $8.7 billion was lost just due to the sanctions.
The total DeFi TVL currently stands at just $58.35 billion
However, the DeFi space is expected to be revamped by the end of this month.
Ethereum and Cardano are bringing gifts for the DeFi market.
While Ethereum is the biggest DeFi chain in the world, Cardano, since its inception, has always been touted as the future of crypto with next-gen DeFi applications. This is yet to be seen, but the arrival of the Vasil hard fork is expected to bring new life into Cardano’s decentralized finance capabilities.
A week before that happens, Ethereum will also go through the Merge, shifting the blockchain from Proof of Work to Proof of Stake, eventually making the chain far more efficient and scalable for DeFi operations.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Solana price pumps 7% as SOL-based POPCAT hits new ATH, JITO becomes largest protocol on TVL metrics
Solana (SOL) price is the biggest gainer among the crypto top 10, with nearly 10% in gains. The surge is ascribed to the growing popularity of projects launched atop the SOL blockchain, which have overtime posted remarkable success.
High hopes rouse for TON coin with Pantera as its latest investor
Pantera aims to introduce crypto to the masses with investment in TON blockchain. The TON blockchain has received significant recognition among crypto investors following recent partnerships and integrations. TON could see a rally following Pantera's recent investment.
Ethereum to break out of bearish move, ETH ETFs unlikely in 2024
Ethereum shows signs of recovery despite a second consecutive day of poor performance in Hong Kong's spot Ethereum ETFs. Bloomberg analyst James Seyffart has also shared that a spot ETH ETF may not happen in the US in 2024.
Wasabi Bitcoin privacy mixing service to shut down starting June 1, zkSNACKs cites legal certainty concerns
zkSNACKs, the company pioneering the development of Wasabi Wallet, has revealed plans to shut down its Coinjoin coordination service, effective from June 1, 2024.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.