In the first quarter of 2021, the Dollar value of Decentralized Finance applications grew to 150%, from around $20B to $50B. Nevertheless, the higher percentage of this activity shows the USD value of Ethereum and ETH-based projects, not the growth in the total number of cryptocurrency AUM.
If we were to define the Blockchain space with one word it should be Innovation. The Blockchain industry has experienced a lot of innovations till today. DeFi is a good example of how absolute innovation has been the brain behind Blockchain development.
However, there is another certain aspect that has caught the attention of the entire blockchain community after Decentralized Finance. The aspect has been booming and because of its uniqueness, attention has been shifted to it (Non-Fungible Tokens). Today, NFTs have created a solid foundation in the blockchain industry with several features and applications.
The decentralized exchanges by a variety of lively accounts in the first quarter of the year are Ethereum based Uniswap which ends the quarter with close to fifty-five lively accounts and binance smart chain PancakeSwap ending with fifty thousand.
The rapid trends with Non-Fungible token gave rise to its sales, tokens, and the popularity of its marketplace. The NFT sector stole Decentralized Finance aspect fame with over 20X rise in the trading volume and valuations of over two billion USD for certain marketplaces.
After the Defi boom in the previous year, the Decentralized Finance hype is cooling down and the NFT sector is taking over. Adjusting for price effect by setting cryptocurrency prices over 2 months, we can see that the total value locked in Decentralized Finance grew half a hundred percent over the Q1, with a little retracement at the end of March.
Institutional Investors are focusing on both aspects of the crypto industry as they don’t want to lose out on both sides. NFT has succeeded in bringing the attention of certain industries like sport, fashion, and entertainment to the blockchain and cryptocurrency world.
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