The devastating impacts that the crypto industry has been facing presently also include the immense pressure caused by FTX’s collapse. The Crypto market is likely to incur further losses and invite more turmoil because of FTX.
DappRadar’s Report Show Signs of Strong Resilient
However, within these turbulent times, DappRadar’s report indicates a strong presence of resilience in the crypto market stemming from NFT and DeFi sectors.
Although the impact of FTX collapse was also felt by decentralized finance (DeFi), however, instead of declining, user activity has increased significantly.
Since the past month, the user activity has not only come back on track but also arisen higher than before.
DappRadar report suggested firstly that since 1st November 2022, there had been a 20% decline in DeFi’s total value locked (TVL).
Contrary to the decline, currently, DeFi TVL has been going up. This is so because apparently further coins have been added to the TVL pertaining to DeFi protocols. This is undoubtedly a positive indication for the entire DeFi sector.
Ether’s TVL Decline and Staking Boost
Ethereum is by far the leading network in terms of its TVL. However, Ethereum’s TVL too declined by at least 14% on 13th November i.e. to $41 Billion from $51 Billion.
At present, Lido Finance has been playing a very crucial role in the Ethereum network as it is currently offering to stake of Ether coins. Resultantly, Ether’s staking has increased by 10.16%, which is an all-time high percentage ever.
Other DeFi Losers
There was also a 14% decline noted in the TVL pertaining to Binance’s native coin BNB, which is now resting at $7.3 Billion. Similarly, 25% decline was seen in Tron’s TVL leading its price down to $4.6 Billion.
However, the most affected DeFi project was that of Solana whose TVL has shrunk below $585 Million from $1.65 Billion. This massive decline was noted by Solana with a percentage of 65%.
On the contrary, the sector pertaining to decentralized applications (DApp) has been growing strongly without being affected by FTX’s collapse.
DappRadar’s report noted that the gaming dapps sector is under zero influence stemming from the FTX scandal. There weren’t any apparent swings in gaming chains particularly the top chains i.e. EOS, IMX, Ronin, Hive or Wax.
NFTs under No FTX Influence at All
The report further noted the reduction in NFT’s sale volume is attributed to the economic crunch rather than FTX contagion.
The daily NFT trading volume on the Ethereum blockchain had declined by 73.75 and had shrunk to only $4.4 Million.
Similarly, the NFTs’ daily trade volume has dropped significantly on almost all blockchains.
In the findings of the report, it has been concluded that though FTX impacts are visible yet great resilience is present in DeFi and NFT sectors.
The reason why these sectors have not faced much of an impact from the FTX crash is that these protocols are not run by a single entity. There is no centralized body running these operations.
Instead, most of the DeFi protocols are out there as open source to the cryptocurrency industry. Most of them offer governance to the users, allowing them to be contributors to the network’s success.
This in return has helped these sectors to be able to fend off any harmful aspects or contagions that are currently destroying the rest of the crypto industry.