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TOP 5 metrics that point to the spillover of capital from the NFT to DeFi

3 min read

 

DeFi overtakes NFT
Source: Shutterstock.com/Sashkin

NFT has been in hype since July and sales of CryptoPunks, Bored Ape Yacht Club and EtherRock NFT have broken records. OpenSea Market it even exceeded total sales of $ 4 billion. However, many new projects have been launched in various blockchain networks. The recent decline in transaction volumes may be a signal that investors are trying to move out of this market.

In the first quarter of 2021, the focus of investors was on decentralized financing protocols (DeFi). However, this sector subsequently stagnated as the NFT market underwent its first bullish trend. Now the card appears to be turning again. Let’s look at a few numbers that confirm that the money spills over from the NFT to DeFi.

Growth of DeFi tokens

DeFi Perp is an index token on the FTX cryptocurrency exchange that contains a basket of the top 25 DeFi-related cryptocurrencies. It also includes Maker (MKR), Polkadot (DOT), Solana (SOL), Curve DAO Token (CRV), Uniswap (UNI) and SushiSwap (SUSHI).

Data from TradingView shows that the price of DeFi Perp has risen to $ 5,331 since July 20, when it hit the bottom. Since then, by September 2, it has risen 138% to a daily high of $ 12,771.

DeFi Perp 1D.  Source: TradingView

 

DeFi Perp 1D. Source: TradingView

The growth is a sign that funds are starting to flow back into the DeFi ecosystem, as are daily trading volumes, while the NFT is declining.

NFT prices are cooling

The graph below tracks daily lower limit of average NFT prices sold on the market. The average price limit reached a maximum of 1.02 ETH on August 29 and has since withdrawn to 0.5 ETH.

NFT price tracker.  Source: Dune Analytics

 

NFT price tracker. Source: Dune Analytics

The fact that NFTs sell at a lower price may be a sign that the market has become saturated and the momentum begins to weaken.

The active number of users and transactions on DeFi platforms is growing

Another sign that the DeFi ecosystem continues to grow is the ever-increasing number of DeFi users, as shown below in Dune Analytics data.

DeFi users.  Source: Dune Analytics

 

DeFi users. Source: Dune Analytics

This metric tracks the number of unique wallet addresses that interact with DeFi protocols. It is possible that some of them have multiple addresses. The continued entry of new users into the DeFi space could also signal a growing trend in the sector.

ETH at $ 4,000

The price ETH has increased by 125% since reaching a low of $ 1,706 on July 20, with its most recent increase of 23% pushing the price from $ 3,134 on August 30 to maximum $ 4,029 September 3.

Most of the top DeFi protocols are located on the ETH server. Altcoin is one of the main assets of the DeFi ecosystem and is widely used.

ETH / USD 1D.  Source: TradingView

 

ETH / USD 1D. Source: TradingView

DeFi TVL reaches a new historical maximum

The last metric to indicate that money is being spilled into DeFi is the total locked value (TVL) in all protocols. On September 2, this number reached a new one a record high of $ 171.5 billion.

DeFi TVL.  Source: Defi Llama

 

DeFi TVL. Source: Defi Llama

Previous TVL increases were largely due to higher BTC and ETH prices. Now, however, the situation is different and DeFi is on ATH despite the fact that neither ETH nor BTC They are not. This suggests that the increase in TVL has more to do with the increasing value of DeFi tokens and the increased use of stablecoins.

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