Although the decentralized financial (DeFi) market suffered a 74.6 percent drop in market capitalization in Q2, user activity remained resilient, according to CoinGecko.
In a report published by CoinGecko reportthat DeFi’s overall market capitalization dropped from $142 million to $36 million in the second quarter due toFall of Terra and Stablecoin TerraUSD Classic (USTC) in May.
CoinGecko also stated that the attack DeFi Boosted InThis quarter also contributed to the downturn, including Inverse Finance and Rari. which were hacked for $1.2 million and $11 million respectively:
“These attacks had a negative impact on the token price. Because investors will lose faith in these hacked protocols.”
However, CoinGecko also noted that while on-chain activity has slowed, the DeFi industry is still able to retain most of its daily active users.
The number of daily active users on DeFi dropped only 34.5% from 50,000 to 30,000 in Q2. There are also several instances where DeFi activity has increased dramatically.
The first surge occurred in May. After the collapse of Terra resulted in users moving to Curve Finance and Uniswap to sell Terra ( LUNA ) and the falling USTC
in the same way DeFi user activity soared again in June, according to CoinGecko, when cryptocurrency lending platform Celsius enforced withdrawal limits. referring to financial problems
NFT trading volume decreased
The report also found that trading volume for NFT tokens dropped 26.2 percent from its June 2021 peak to $7.6 billion in the quarter. This was largely led by lower NFT trading volumes on the Ethereum network.
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