DappRadar August report: NFT transaction volume repeatedly breaks new highs, DeFi benign competition intensifies

Original title: "DappRadar August Report: NFT speeds up to record, DeFi healthy competition intensifies"

Original source: Pedro Herrera, DappRadar

Original compilation: Rachel

August 2021 is a big month for the crypto industry. Record trading volume proves that this is the summer of NFTs, and the market value of some collectibles has even exceeded $1 billion. The proliferation of earn-to-play games continues, and as a result boosts the overall usage of Dapps. The DeFi race is also getting more interesting.

August saw several big events: On the one hand, tokens such as Cardano, Terra and Solana hit all-time highs, while the latter two benefited from their DeFi space Strong performance; In addition, NFT and chain games once again occupy the headlines of encrypted news.

In August alone, OpenSea generated $3.3 billion in gross transactions. Collectibles like CryptoPunks and Bored Ape Yacht Club (BAYC) are considered a store of value, with each passing the $1 billion mark.

Source: Google Trends

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With Axie Infinity in full bloom, the earn-as-you-go revolution deepens, with the game's historic sales exceeding $1.7 billion and still attracting over a million players every day. BSC games are also continuing to attract a large number of users, while Wax, Hive, and EOS are also mainly driven by game Dapps.

Note: Unique Active Wallets (UAW only active wallet) or Unique wallet refers to unique addresses that interact with a given smart contract, therefore, UAW does not translate into Unique users, a single person may use different wallets to interact with a single Dapp.

Key Takeaways

August , the number of unique active wallets registered in the Dapp industry exceeds 2 million per day, an increase of 18.14% month-on-month and 883% year-on-year.

BSC remains one of the most widely used networks in the entire industry with over 1 million unique active wallets, recent developments based on the earn-by-play game promote.

In August, the NFT field exploded, with a market value of more than $14.27 billion.

Axie Infinity and OpenSea ($355M and $78M) generated $433M in August, or 87% of total Ethereum revenue .

The total TVL of DeFi reached 142 billion US dollars, of which 68% is still concentrated on the Ethereum network, and the TVL of Avalanche and Solana are also more than 5 billion US dollars.

Ethereum usage is shifting to NFTs, with DeFi seeing a 17% decrease in unique active wallets and a 202% increase in unique active wallets interacting with NFTs.

Games Drive the Growth of Blockchain Industry Usage

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The blockchain industry continues to expand. In August, more than 2 million unique active wallets interacted with the blockchain network, an increase of 18.14% from the previous month and an increase of 883% from August 2020. The growth in usage is primarily driven by the rapid growth in the number of blockchain gamers.

Source: DappRadar

The blockchain gaming industry saw a 17% increase in usage compared to July, with around 880,000 unique active wallets interacting with smart contracts every day. A clear example can be observed by analyzing the Binance Smart Chain (BSC). BSC is one of the most used blockchains in the industry, with over 1 million unique active wallets, originally reliant on DeFi protocols, and is now home to over 470,000 blockchain gamers.

Hive is a blockchain with high transaction speed and low transaction fees, one of the most used protocols and showing the second largest growth in terms of adoption Trending, more than 224,000 unique active wallets are connected to the Hive blockchain, a 459% increase from the previous month. This is thanks in part to the massive rise of Spnterlands, a blockchain game dapp that has grown in usage.

Source: DappRadar

The self-proclaimed king of NFTs on the WAX blockchain has the second largest game in the industry, Apen Worlds, which has attracted over 580,000 unique active wallets, driving the majority of WAX usage.

The play and earn revolution is in full swing. The most used blockchains are all supported by popular blockchain gaming Dapps, and the trend is likely to rise. While NFTs are getting most of the attention, it’s safe to say that games are currently driving blockchain usage and increasing blockchain usage.

NFT sales exceed $5 billion

August Usher in the explosive growth of NFT, and there is no sign of ending. This month, total NFT sales exceeded $5.29 billion, an increase of 315% month-on-month and 1103% year-on-year. With the continuous launch of new projects, the demand in the NFT field has increased significantly with the increase in supply, and it can be seen that the entire NFT space continues to expand.

Source: DappRadar

Another important indicator supporting the growth of NFT demand is the number of sales. In August alone, total sales of 5.6 million were recorded, up 22% from July.

Source: DappRadar

By combining the top 100 Ethereum collectibles (by sales volume) plus NBA Top Shot collectibles, we estimate the NFT market cap at $14.27 billion. This number still needs to factor in the Axie Infinity NFT as well as the activity happening on other platforms such as WAX’s Atomic Hub or Tezos’ Hic et Nunc. But growth is expected to continue, so it's imperative to start looking squarely at the actual size of the NFT landscape.

OpenSea ushered in a month of explosive growth

In addition to Axie Infinity and Outside of activity on the Ronin sidechain, 97% of total NFT sales occurred on Ethereum, led primarily by the OpenSea marketplace. The most recognized collectibles in the industry are hosted on Ethereum, and most of them can be traded on marketplaces like OpenSea or Rarible. OpenSea has been a direct beneficiary of this particular trend as NFT sales have skyrocketed.

OpenSea outsold the Axie Infinity marketplace, and in August alone, OpenSea traded over $3.4 billion, a figure that was up 743.5% from the previous month and accounted for the platform's 75% of historical sales.

Source: DappRadar

Collectibles like CryptoPunks and BAYC have raised their reserve prices significantly, and certain NFT Dapps launched in August are starting to see very strong sales. For example, 0N1 Force and Mutant Ape Yacht Club have each surpassed $100 million in sales. All together, OpenSea has had its best sales month yet.

According to Token Terminal statistics, OpenSea generated more than $78 million in revenue in August, accounting for 17% of Ethereum's net revenue, only behind Axie Infinity, Became the top earning Dapp in the past 30 days.

Source: Token Terminal

NFT reaches the mainstream media

NFT micro indicators point to the organic growth of the space, and macro indicators from a more general perspective Exhibits a positive pattern.

Last month, Coca-Cola, Gucci, D&G and Burberry entered the crypto space with digital collectibles; Buying CryptoPunk#7610 at the price of US dollars, Visa officially announced on Twitter, which aroused a large number of mainstream media reports, once again emphasizing the importance of NFT in the upcoming digital future.

Source: Larva Labs

Another burst of mainstream news was initiated by Sotheby, the world-renowned art, jewelry and collectibles broker, which announced last week that 101 pieces from BAYC and 101 pieces from BAKC will be sold on September 2 It will be auctioned on its platform from 1st to 9th September.

Sotheby's involvement in NFT is not the first time, last June, Sotheby auctioned CryptoPunk#7523 for a record $11.8 million, the multinational company also participated in the WWW original Auction of source code NFT and other NFTs.

This kind of news around major NFT projects like CryptoPunks and BAYC is good for the entire NFT field and the entire blockchain industry. If this trend continues, the blue chip Collections will become a true store of value.

The topic of Axie Infinity has soared, attracting the attention of the government

Axie Infinity moves on. Vietnamese Gaming Dapp Attracts Over 1 Million Unique Active Wallets Daily, Making It the Most Valuable NFT Collection Ever. As of this writing, Axie has grossed over $1.7 billion in sales. Meanwhile, the game’s governance token, AXS, has risen roughly 73.17% in price since the end of July. According to Coingecko, AXS is currently trading at $71.5.

Source: DappRadar and Coingecko

The widespread reach of Axie Infinity has drawn the attention of the Philippine government, which has more than 500,000 active Axie gamers. Antonette Tionko, Deputy Secretary of the Philippine Department of Finance, publicly stated that all income earned from the Axie platform will be subject to tax laws and need to be taxed.

Games have become a new growth point for BSC

BSC is one of the most widely used blockchains in the entire industry, with more than 1 million unique active wallets. Recently, BSC has once again increased the utilization rate of the entire network by relying on game Dapp, which is also similar to the entire industry.

Source: DappRadar

Last month, CryptoBlades attracted over 350,000 unique active wallets, making it the third most played game in the entire industry. In August, CryptoBlades attracted over 511k unique active wallets, well maintaining itself as the #1 game and #2 most used Dapp in the BSC ecosystem, behind PancakeSwap. However, these indicators may indicate that Dapps are heading for a cooling period.

Dapps like X-World Games and Mobox have been attracting new users to the BSC network. Mobox, a Dapp that combines gaming functionality with NFT staking and liquidity mining, attracted over 140,500 unique active wallets in August, a 439.6% increase from the previous month.

Source: DappRadar and Coingecko

Although BSC games do not provide the best gaming experience, they still manage to attract a large number of users, mainly due to the simple game mechanics, the popularity of BSC games has increased significantly.

A single game Dapp cultivates the entire ecosystem

August achieved the largest One of the advanced blockchains is Hive. Hive is known for its fast transaction speeds and low fees, making it an ideal place to host blockchain games. Home to several social Dapps, Hive registered more than 224,000 unique active wallets in August, up month-on-month 459%, an increase of 1408% over the previous year.

Sppnterlands has driven Hive's success and has become the latest game in heavy use. In August alone, the poker game attracted more than 207,000 unique active wallets. During the same time period, the game generated a staggering 61.24 million transactions (a 60.59% increase quarter-over-quarter), while generating over $530,000 in transaction volume.

Sppnterlands currently accounts for 92.43% of total network usage.

Source: DappRadar

A similar situation happened with WAX, where Apen Worlds generated more than half of usage. This number could be even higher if we were to isolate players who only traded Apen World items within the Atomic marketplace hub. Over 1 million unique active wallets were connected to the game in August, a 10.98% increase from July. Sppnterlands and Apen Worlds usage is still growing.

EOS is powered by the Upland blockchain game. The fact that one gaming Dapp can foster an entire ecosystem is baffling and underscores how successful the earn-to-play revolution is now.

Changes in the DeFi leaderboard

In 2020, we have experienced a After Shengxia, the DeFi space seems to have stagnated, although the number of reduced DeFi usage is not particularly dire. There were 641,000 unique active wallets interacting with DeFi Dapps in August, down 2% from July’s figure.

At the time of writing, DeFi has a TVL of $142.1 billion, a figure that represents a 22% increase from what was seen at the end of July. It is worth mentioning that the above TVL considers 6 blockchains: Ethereum, BSC, Terra, Polygon, Solana, and Terra.

Source: DappRadar, DeFistation.io and DeFillama

Ethereum remains the leading blockchain in terms of TVL, with a TVL of $97.15 billion at the time of writing, a figure that is up 16% quarter-on-quarter and accounting for the industry 68.35% of TVL. While the gains are certainly encouraging, it's also worth noting that ETH's price is up 31% from the end of July, contributing to the spike in TVL. Yet the growth appears to be organic.

The same is true for BSC, which saw a 24% increase in TVL for the network compared to the end of July. BSC’s TVL is currently $27.3 billion, or 19.25% of the total, with BNB prices up nearly 50%.

It is also worth mentioning that the two most commonly used DeFi Dapps are hosted on BSC, PancakeSwap is still the most used Dapp of all protocols, and DeFi Dapp is hosted on August attracted over 2.5 million unique active wallets, a 24% increase from July.

ApeSwap surpassed Uniswap V3 as the only active wallet in August. Over the past 30 days, ApeSwap has registered more than 319,000 unique active wallets, and its audience has increased by 27.62% month-on-month. While the volumes are still in different categories, the engagement generated by Dapps is still significant.

Source: DappRadar, DeFistation.io and DeFiLama

A less-than-ideal situation happened to Polygon, fourth in TVL. Due to the success of the multi-chain paradigm, multiple Dapps have also been seen extending their functionality to Polygon, but the TVL growth does not appear to be really organic, with a total of $4.87 billion locked in Polygon, nearly half of which is locked in Aave. The current TVL has increased by 6% from last month, while the price of MATIC has increased by 35% at the same time, making the increase in TVL almost 1:6.

Three new players in the DeFi field

The DeFi field is getting more and more more crowded. In recent weeks, three blockchains have shown their footprints in the DeFi ecosystem. Terra, Solana, and Avalanche are finally here after months of continuous development. It’s no coincidence that the native tokens of the Terra and Solana ecosystems, LUNA and SOL, are also hitting new all-time highs, and that Avalanche token AVAX is also continuing to rise.

Source: Coingecko

Terra has been active in the DeFi space since November 2020 and is one of the most important stablecoins in the ecosystem, like TerraUSD (UST). Currently, Terra has a TVL of more than $7.59 billion, surpassing Polygon. Its TVL increased by 74% compared to July and 151 times compared to December 31, 2020. Terra's design includes the issuance of algorithmic stable coins, while creating a strong DeFi infrastructure, which is in a good position in the DeFi competition.

Solana is a network known for its high transaction speed and contains a very complete ecosystem, ideal for supporting a variety of projects from complex DeFi Dapps to NFTs . Solana currently has over $3 billion in TVL, more than double what it had in July. Since March 2021, the network's TVL has increased by 1,364%.

Avalanche is another blockchain that can thrive in the DeFi space, the network is one of the most secure blockchains and also enables high-speed transactions . Avalanche Rush, a $180 million liquidity mining initiative, was announced a few weeks ago to kickstart the DeFi journey. At the time of writing, Avalanche has surpassed $2 billion in TVL, a 1032% increase in TVL compared to the previous month.

All in all, the DeFi field has become more complete. A wider range of possibilities will necessarily help the environment become more competitive, hopefully resulting in better products and better user experiences while reducing friction and risk.

Ethereum: users flow from DeFi to NFT

Ether Fang is one of the most important blockchains in the entire industry. Although Gas fees are high, it is still an important pillar of DeFi and has undoubtedly become an important location for NFT projects. After seeing recent usage driven by gaming, it is worth revisiting Ethereum, a blockchain where gaming is not dominant.

There were 75,000 unique active wallets interacting with Ethereum DeFi-related smart contracts in August, and 48,600 interacting with NFTs. While first impressions might suggest that DeFi is still the trend on Ethereum, a deeper analysis offers another perspective.

Looking back at the DeFi usage of Ethereum, a downward trend can be observed. First of all, the entry of BSC and Polygon into the DeFi field and the full development of the multi-chain paradigm have attracted a large number of users who cannot afford the high Gas fees of Ethereum. In addition, the NFT mania experienced in recent months has attracted users to a certain extent.

Source: DappRadar

Just by comparing trends, it is clear that Ethereum is undergoing a transition to NFTs. Unique active wallets interacting with NFTs increased 226% from the previous month and 1440% from January. DeFi unique active wallets, on the other hand, are down 16% month-on-month and 51% since the beginning of the year.

Although the summer of 2020 is the home of DeFi, it is undeniable that NFT has become the entrance for newcomers to the blockchain, and may also attract a large number of DeFi user.

Summary

The encryption industry is growing at an increasing speed expansion. Usage comes from gaming space, NFT is driving record transaction volume , the DeFi space looks more competitive than ever. Overall, this is a good development trend for the blockchain industry.

NFT mania also left an impressive showing. OpenSea had the highest volume month in the history of the NFT market, collectibles like CryptoPunks and BAYC have surpassed a $1 billion market cap and are finally gaining mainstream attention, newer collections like 0N1 Force and Mutants Ape Yacht Club smashed the charts in less than a month.

While demand for NFTs still appears to be increasing, some kind of slowdown is expected, especially in avatar collectibles. In the last month, we’ve started to observe a trend of generating artwork, especially from the Art Blocks collection, selling for as much as $5.6 million.

Furthermore, once the price of ETH increases significantly, those that lack tangible utility It will certainly be interesting to see what happens to the project. It seems only a matter of time before projects that don’t provide enough utility to their communities will be replaced by other types of NFTs that cater to the needs of our inner artists, such as pictures, music, or generative art itself. While the current demand satisfies the growing supply of avatars, the era when users will be satisfied with avatar NFTs is not far away.

The blockchain game industry is also booming. Playing and earning is becoming a way of life, and it has become especially important in emerging market countries. Traditional gaming organizations and investors are starting to turn to this space. With Virtual Lands and the Metaverse one step closer to a full reveal, the time is near for a top-notch NFT collectible to become a complete gaming experience.

Currently recognized game Dapps like Axie Infinity, Apen Worlds, and Sppnterlands will continue to be successful at the top; on the other hand, while BSC games do attract users, But these dapps really need to improve their gaming experience at some point to compete with other dapps that offer true gaming immersion.

Although DeFi seems to have lost its relevance in the past few months, the overall feeling is healthier than ever. Ethereum and BSC seem to have become the top two blockchains in this space. On the one hand, Ethereum is still the main investment venue for large investors (whales), and BSC is driven by the high usage of PancakeSwap and ApeSwap. With the advent of Avalanche, Solana, and Terra, DeFi users will have multiple options to maximize their returns.

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