The value of crypto locked in DeFi increased by 17% due to ETH appreciation and a rise in trading activity.
The total value locked (TVL) in decentralized finance (DeFi) applications reached $192 billion in May, the largest amount since February 2022, according to a report from blockchain analytics platform DappRadar. Despite the rise in TVL, the number of unique active wallets using DeFi declined by 21%.
The U.S. dollar value of cryptocurrencies locked within DeFi applications grew by 17% in May, fueled by increasing Ether (ETH) and token prices. Out of all networks, Ethereum dominated the DeFi market’s TVL, making up $130 billion, or 68% of the total. Solana (SOL) came in second with $10.9 billion, or 5.7% of the total. Solana’s DeFi TVL increased by 14% over the previous month.
Despite the strong TVL growth, the DeFi sector saw a decrease in the number of daily unique active wallets (UAW), indicating that the user-base is shrinking at the same time that remaining users are depositing more or seeing their portfolios increase in value. UAW declined by 21% to 1.75 million for the month, which is 17% of the UAW for all Web3 apps combined.