DeFi TVL down 4.3% in May is mixed

The industry saw a mixed performance in May, as DeFi saw a decrease in total value locked (TVL) but an increase in its share of on-chain activity. The dApp industry has grown, while blockchains, with the exception of Tron, have fallen behind in TVL.

According to the latest DappRadar report, the cryptocurrency industry had a mixed bag in May, with different parts of the industry simultaneously advancing and taking steps back.

Blockchain TVL Decline

Total withheld value (TVL) in DeFi protocols – or the funds used in them – decreased 4.3% in May, falling to $79.16 billion. However, DeFi’s share of on-chain activity rose to 31%. So even though more users take advantage of its protocols, they play less collectively.

However, it wasn’t all bad. The dApp industry grew by 9.97% in May, averaging 1,967,051 daily unique active wallets (dUAW), reflecting a steady increase in interest in Web3.

Total Value Closed (TVL) Top Blockchains, April-May 2023. Source: DappRadar

The decline was a key takeaway for the blocks in May, as TVL fell across the board. The only exception in the report was TRON, which grew just under 1% for the month.

The biggest loser in this period was Fantom (FTM). TVL fell 37% to $308 million due to its connection to Multichain Disorder stemming from rumors of possible arrests in China. The original Multichain coin, MULTI, experienced a sharp drop of 49%, which affected Fantom’s assets and led to a switch to Arbitrum.

Low NFT trading volume

The NFT market has seen mixed performance in the past month, reflecting a broader trend in the industry. Trading volume fell below $1 billion for the first time since December 2022, with NFT trading volume in May dropping sharply 44% to $675 million compared to the previous month.

FT turnover and number of sales.  Source: DappRadar
NFT trading volume and number of sales. source: DappRadar

In May 2023, Blur had 65% market share and generated $442 million in NFT sales. The previous king of the NFT markets, OpenSea, had a 27% market share and $183 million in revenue. Despite Blur’s dominance, OpenSea had a much larger number of traders, at 377,087, compared to Blur’s 36,673. This reflects something we’ve known for a long time: Blur appeals to a certain type of market participant. Namely, those who want a technical focus on high-frequency trading and less on collecting.

However, Blur’s NFT lending service, Blend, has taken some attention away from its trading platform. The transition of NFT traders from the former to the latter has greatly contributed to the drop in trading volume.


Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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