Crypto & Blockchain News

Dapp Industry Grows by 10% in May Despite DeFi Drop

The decentralized application (dApp) industry saw significant growth of 9.97% in May, according to the latest monthly report by DappRadar. The report reveals that the industry achieves an impressive average of 1,967,051 active unique daily wallets (dUAW). Research attributes this growth to a thriving gaming sector and a thriving decentralized finance (DeFi) landscape, despite the decline in total value locked in DeFi.

The report emphasizes the promising growth and stability of the gaming and DeFi sectors, underscoring the importance of the industry as a whole. The gaming sector is emerging as the dominant force, accounting for 36% of all dApp activity and boasting 711,913 dUAW. It witnessed a steady growth rate of 5.97% compared to the previous month. Moreover, blockchain games alone dominate transactions across the dApp industry with an impressive 77% share, for a total of 550 million transactions.

DeFi also showed remarkable growth, as unique active wallets increased by 18% to 607,945, giving the sector a 31% share of the dApp market. In contrast, social dApps, despite being the third largest sector with a dominance of 12%, experienced a 5% decline in dUAW during the same month.

However, the report highlights a notable drop in total locked value (TVL) for DeFi in May. TVL fell 4.3%, dropping to $79.16 billion. DeFiLlama, another source, reported a similar drop, estimating TVL at $52.74 billion for the same period.

BNB Chain emerged as the market leader for dApp activity, recording an increase of 8.68% to reach 532,056 dUAW. The report notes that this dUAW growth is occurring primarily in blockchains offering DeFi products, adding an interesting dynamic to the overall picture.

Among the best performing dApps this month, Stargate Finance stands out with over two million dUAW, surpassing PancakeSwap after experiencing a 40% increase in user base during May.

While the crypto market witnessed a 2% drop in total market cap, they remained relatively stable throughout the month. The total market cap stands at $1.18 trillion, representing a 0.9% increase on the day of writing. Bitcoin (BTC) made marginal gains, topping $27,000 once again, while Ethereum (ETH) rose 1.5% to $1,883.

Despite the low volume and volatility that kept crypto assets within tight ranges, on-chain data suggests an imminent run. Traders and investors eagerly anticipate the next market trends, which could bring significant opportunities and challenges to the crypto industry in the near future.

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