Increase in DeFi and NFT Activity in May Signals Potential Beginning of Market Recovery (According to DappRadar)
In the steamy month of May 2025, the dapp sector sprang back to life like a phoenix from the ashes. According to DappRadar's data, this spike in activity was nothing short of a turning point for the industry. With daily unique active wallets (dUAW) soaring by 8% to hit an impressive 25 million, the sector seemed to be dancing to a new beat.
Notably, three key sectors - AI dapps, social dapps, and NFT dapps - saw impressive growth. AI dapps surged a impressive 23%, ballooning to 4.8 million dUAW. Social dapps didn't fail to impress either, growing by a whopping 21% to reach 4.3 million. NFT dapps didn't fall behind, either, swelling by 9% to hit 3.9 million. This surge in user engagement created a more balanced and robust dapp ecosystem.
While the decentralized finance (DeFi) sector was already a powerhouse, it didn't stop growing. Total Value Locked (TVL) skyrocketed by 25% to rest comfortably around $200 billion. This growth came on the heels of Bitcoin's new all-time high and Ethereum's Monster 40% price surge. These factors boosted the asset values and liquidity in the DeFi sector.
Centralized exchange Hyperliquid made headlines by hitting a jaw-dropping $244 billion in trading volume. This traffic was roughly equal to 10% of Binance's market share, despite facing harsh criticism from industry heavyweights following a questionable handling of a market manipulation case. Hyperliquid's achievement catapulted it into the upper echelons of leading exchanges, both centralized and decentralized, and into the top 10 by TVL across all blockchain networks.
The NFT market, too, showed some life in this game-changing month. Talk about signs of a comeback! Trading volume shot up by an astonishing 40% to reach $280 million, while transaction counts spiked by 35%, totaling 2.7 million. Yet, it would be premature to declare this a full-blown recovery. The industry will need to maintain this momentum in the following months to truly recover from the challenges it has faced.
Ethereum managed to reclaim its throne in the NFT market, with a solid 30% increase in trading volume and a substantial 53% market share. It was followed by Immutable zkEVM at 13% and Abstract at 10%. Abstract's mind-boggling 1200% increase can be largely attributed to speculation surrounding farming incentives and potential airdrops.
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- In the dapp sector, the surge in NFT dapps was remarkable, swelling by 9% to hit 3.9 million daily unique active wallets (dUAW).
- Centralized exchanges like Hyperliquid also made headlines, reaching a trading volume of $244 billion, roughly equating to 10% of Binance's market share.
- The decentralized finance (DeFi) sector, already a powerhouse, saw TVL skyrocket by 25% to rest comfortably around $200 billion.
- Ethereum, in the NFT market, reclaimed its throne with a solid 30% increase in trading volume and a substantial 53% market share.
- Investing in technology, such as cryptocurrency wallets and trading platforms, has become more attractive with platforms like Binance offering an exclusive $600 welcome offer and Bybit offering a free $500 position on any coin.
- Also in Finance, the NFT market showed signs of a comeback, with trading volume shooting up by an astonishing 40% to reach $280 million and transaction counts spiking by 35%.
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