Cryptocoin. com we focus on what you need to know about DeFi and NFTs as possible investment tools. Ethereum and Bitcoin have long been both the most prominent projects in the market, and they are considered to be the best investment options on the market. However, with new investors entering the market, new investment options also come to the fore. In the past, ICOS was a big thing. Today, DeFi and NFTs may have taken their place. And surprisingly, with their performance, DeFi and NFTs are doing eye-catching business in the wider market.
While the majority of the market is still trading in bearish mode in the red, DeFi protocols have seen a surge in usage. Stablecoin-Centric Dapps is currently leading the ecosystem. While Ethereum recorded a 14.1% correction, across all chains, DEFI TVL (total kildollarsi value) has decreased by only 5% over the same period. This means that in the late saadollarser, the DeFi domain was not significantly affected by the changes in ETH’s value.
We are witnessing TVL in DeFi altcoin projects surpassing its May levels. However, the highest TVL of the top 5 protocols at the time of writing was far from their respective ATHs. AAVE 49%, Curve (CRV) 43.7%, Compound (COMP) 52.86%, MakerDAO (MKR) respectively. 57%, and Convex (CVX) had 38. 5%. Overall market values are significantly lower than their May levels. A big reason for the slight deviation from Defi is also due to the rise of NFTs.
What effect did NFT have?
NFTs emerged as a major trend in that space following the emergence of Cryptopunks and Apes. In fact, September 8 saw one of the biggest NFT events in history. More than 18k addresses competed for the 7000 NFT mint from a collection called Sevens. This resulted in the highest average gas price ever recorded at more than 5k gwei in just 10 minutes.
Despite the above, the overall NFT market has seen some pullback recently. In fact, daily volumes dropped to $100 million. One reason for the same is that top Cryptopunk and Ape (from the biggest NFTs) holders have switched to hodling mode, trading less recently. That their value is dependent on speculation and deception is among the things that have been said. Unfortunately, their value can also drop when market interest fades.