The cryptocurrency market, Web3 and the decentralized application (Dapp) sector have been shaken by the sudden collapse of the FTX exchange and all associated organizations. From business as usual to filing for bankruptcy and conducting fraud investigations in less than seven days, it rocked the market.
In fact, the rapid collapse of FTX and its related coins, which had a total value of $32 billion, such as FTX Token (FTT) and Solana (SOL), shocked the sector. However, Web3 has shown remarkable resilience over the past two weeks. Despite the 11.67% drop in activity, there are still 1.9 million unique active wallets per day (UAW) and more than 25 million recorded transactions, according to the latest data from DappRadar Shared with Coinphony on November 17th.
Notably, the Dapp space continues to be strong, with 1.92 million DUAWs delivered in the past seven days. DeFi UAW activity peaked on November 9 and 10, reaching nearly half a million UAWs on both days; DeFi activity is currently returning to previous monthly levels (400,000 dUAW). With 814,305 dUAW in the past two weeks, gaming Dapps look particularly resilient as FTX dips.
There were no significant fluctuations in activity between the different gaming networks (EOS, Hive, Wax, Ronin, and IMX). Over the past two weeks, activity on Arbitrum has increased by 26.36%, averaging 24,443 dUAW. Over the same period, the Polygon Activity Level (MATIC) averaged 148,752 dUAW, an increase of 7.11%.
Total insured value decreased
Since November 1, the total value of assets locked in DeFi systems has decreased by $20.60 billion, from $83 billion to $65 billion. When the Total Value Locked (TVL) goes up, it shows that more coins are being deposited into DeFi protocols, which is a sign of positive sentiment. On the other hand, when TVL goes down, it shows that investors are taking their money out of the ecosystem.
TVL of Ethereum (ETH), the leading TVL chain, fell from $51 billion on November 1 to $41 billion on November 13, down 14%. The yield of ETH stakes on Lido, the largest Ethereum liquid staking service provider, has grown to an all-time high of around 10.16%. stETH has been decoupled from Ether and is now trading at $0.9883.
Additionally, the price of Binance’s TVL token (BNB) fell 14% to $7.3 billion. Tron’s TVL total value decreased from $6.1 billion to $4.6 billion, a decrease of 25.05%. TVL stock also declined by 25.06%, 8.76%, and 10.26% in Avalanche, Polygon, and Arbitrum, respectively.
Crono activity reached 15,000 dUAW and 25,000 transactions on November 13 after fears of bankruptcy of Crypto.com. TVL is down 19% in USD over the past two weeks but is up 45% in CRO.
TVL fell the most on the Solana blockchain. The drop from $1.65 billion to $585 million is a 64.66 percent drop in USD but an even smaller 18 percent drop in SOL.
The value of the SOL token has also decreased significantly compared to its competitors over the past two weeks, dropping by 59.36% to a price of $13.25.
The token’s value temporarily spiked after a rumor that Binance was considering buying FTX, but plummeted when Binance decided to back out of the deal. Binance stated why it is investigating allegations of mismanagement of client funds.
Anatoly Yakovenko, co-founder of Solana Labs, reiterated in A tweet Its positive online presence despite recent losses, though SOL has recently experienced a number of issues.
NFT trading volume down 25%
Elsewhere, with sales down 24.50% over the past two weeks, DappRadar notes that it’s clear the NFT market is far from over and that the recent drop in trading volume is related to socioeconomic issues rather than a drop in collector interest.
During the FTX crash, the prices of many NFT pools fell sharply. Since November 1, sales (24.50%) and trading volume (68.6%) on NFTs have decreased. However, a large part of it can be attributed to the depreciation of linked blockchain tokens.
However, the value of cryptocurrency remained unchanged, despite an average drop of 9.78% in the value of ETH or 30% in the value of the USD.
Web3 continues despite the FTX debacle
The blockchain technology behind FTX and many other innovative projects that have revolutionized the financial system and economies are still going strong. Technology has continued to serve users without hesitation, and anyone can still send and receive assets.
However, clients interested in cryptocurrency exchanges have prompted these companies to recheck their reserves to ensure they have enough cash to meet withdrawal requests.
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Post-Dapp Sector Unfazed by FTX Crash – DappRadar Impact Assessment Report appeared first on Coinphony.