During the first three months of 2024, according to a recent study by QuickNode, decentralized finance (DeFi) and the burgeoning Web3 gaming segment took center stage in the crypto industry. These sectors surpassed the stablecoin sector in crucial performance indicators, suggesting that investors favored these areas and that the market leaned this way at the time.
Hopes For Second ‘DeFi Summer’
According to the findings in the report, DeFi witnessed a notable bounce-back in the first quarter of 2024. This revival was driven mainly by increased developer and user engagement, predominantly on platforms such as Solana (SOL) and Base.
The revival of DeFi is fueling optimism for another “DeFi boom,” as DeFi initiatives adopt innovative approaches like staking, liquid staking, restaking, and liquid restaking. These new concepts have significantly contributed to its expansion. Importantly, staking currently makes up a significant chunk of DeFi’s Total Value Locked (TVL).
Although there are more transactions taking place at stablecoin addresses, DeFi has overtaken stablecoins in a significant area: the number of transactions.
In Q1’24, Decentralized Finance (DeFi) took the top spot in daily transactions with around 7 million averaged each day. Notably, DeFi also dominated in fees spent, gas consumption, and the total number of projects, despite holding just about 4% of the entire crypto market capitalization.
In Q3’23, the total value locked (TVL) in yield-generating decentralized finance (DeFi) protocols amounted to $26.5 billion. By Q1’24, this figure had surged to $59.7 billion, as reported by QuickNode. This significant increase indicates renewed faith and fluidity within the DeFi sector, as investors pursue opportunities for yield production.
Players Take Control With Web3 Gaming
At the same time, a new form of gaming has arisen in the realm of Web3: a marked contrast to traditional gaming sites. With the use of cryptocurrencies and non-fungible tokens (NFTs), this next-generation gaming provides players with decentralized experiences that are unique to them.
Gamers can now engage directly in games and collect incentives, moving power from game authorities towards players themselves within the gaming community.
In simple terms, the report brings attention to the significant expansion of Web3 gaming, outpacing stablecoins in transaction value and marking the greatest year-over-year (YoY) surge in active user addresses across all sectors, witnessing a remarkable 155% rise during Q1 ’24.
The number of players getting involved and interacting with Web3 games has significantly risen, as indicated by the massive 370% year-over-year surge in transactions.
The Appeal Of Stablecoins
While stablecoins dominate with over 41% of all Web3 users, there’s been greater QoQ growth in other categories, suggesting they may soon match or even surpass stablecoins’ user base.
USDT from Tether holds around 75% of the total stablecoin market capitalization. It’s worth mentioning that Circle’s USDC takes the top spot in trading volume and average transaction value. This growth can be attributed to Coinbase’s initiatives, such as integrating USDC into its platform and boosting usage on its Layer 2 solution, Base.
Moreover, the study points out that stablecoins have drawn interest from newcomers and seasoned users alike due to their ability to provide price stability and reliable value, making them a popular choice in uncertain financial markets.
In Q1’24, Stablecoins experienced a significant increase in usage according to QuickNode. This growth can be attributed to various reasons:
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2024-04-18 03:04