Review the NFT, DeFi and gaming sectors in the third quarter from the perspective of Dapp

“If I use one word to summarize the third quarter, it would be’diversification’. Earning while playing has become a key driver in this field. NFT shifts to greater utility and ensures record trading volumes, and the DeFi field becomes more Interesting and more competitive than companies such as Solana and Terra.”-Modesta Jurgelevičienè, Director of Finance and Research, DappRadar

From the data of Dapp, the blockchain industry continues to rise steadily. In September, there were an average of 1.7 million active wallet addresses (UAW) connected to any type of Dapp every day, bringing the quarter’s daily average to 1.54 million. Despite the ups and downs of the crypto market, “play while earning” continues to increase gamers, the transaction volume in the NFT field hit a record high, and the DeFi field has become more interesting and competitive.

Key points of this article:

  • In terms of the number of active wallets (UAW) using Dapp, it increased by 25% quarter-on-quarter and 509% year-on-year. The average daily UAW in the third quarter reached 1.54 million. 
  • The NFT market value of the top 100 NFT series + NBA Top Shot on Ethereum is estimated to be 14.19 billion US dollars.
  • The number of game Dapps has grown rapidly. The number of active wallets connected to game Dapps increased by 140% from the previous quarter, while the number of wallet addresses connected to DeFi and NFT decreased by 11% and 2% respectively from the previous quarter. Nevertheless, compared with August, the usage of all categories of applications has increased. 
  • Axie Infinity keeps breaking records because the game has become the largest NFT collection in history, with a historical transaction volume of more than 2 billion U.S. dollars.
  • The NFT market generated $10.67 billion in transaction volume in the third quarter, an increase of 704% from the previous quarter. Ethereum and Ronin accounted for a record 77.73% and 19.53% respectively.
  • With Terra, Solana and Avalanche becoming DeFi public chains, the DeFi field has become competitive. The total TVL in the DeFi field increased by 53.45% from the previous month to US$178.12 billion.

Gaming continues to drive growth

The blockchain industry continues to grow steadily. In September, there were an average of 1.71 million active wallet addresses (UAW) connected to the blockchain Dapp every day, resulting in an average of 1.54 million active wallet addresses every day this quarter. This figure is an impressive increase of 25% over the previous quarter and an increase of 487% year-on-year. 


One of the main drivers of the steady growth of the industry is gaming Dapps. The P2E model has attracted millions of users on multiple public chains. Game Dapp attracted an average of 754,000 active wallet addresses per day in the third quarter, an increase of 140% from the previous quarter. Blockchain networks such as Hive, BSC and WAX have benefited from the P2E trend.

By analyzing the new Dapps launched in recent months, the number of game categories has increased significantly. Since June, NFT and game Dapps have been on the rise. On the other hand, the launch of DeFi Dapps has decreased significantly. Nevertheless, the data confirms that the use of Dapps in the blockchain industry is increasing.

Although both DeFi and NFT Dapp usage declined slightly, for example, NFT’s Dapp had an average of 102,000 active wallets per day this quarter, a slight decrease of 2% from the previous quarter. However, it is worth noting that using transaction volume to represent the NFT field may be a clearer indicator of status.

The boom of Axie Infinity

Axie Infinity ushered in another impressive quarter. Since turning to Ronin’s sidechain solution, the game’s performance has remained outstanding. Axie Infinity has more than 1.5 million active users in the third quarter. In addition, in the third quarter, the game generated more than $776 million in revenue.


However, Axie ‘s most impressive “milestone” is related to transaction volume. In September, Axie’s historical transaction volume exceeded 2 billion U.S. dollars, becoming the number one Dapp in history. At present, the historical transaction volume of Axie Infinity has risen to 2.18 billion US dollars. From this perspective, the closest thing is CryptoPunks , which is $800 million behind.


Axie Infinity has become a pioneer in earning while playing (P2E), and the staking of the AXS pass has just started. The upcoming battle and land mechanism updates will attract more players.

Behind the record of NFT

The past two months have been explosive growth for the NFT market. August was a record month, and the total transaction volume of the NFT market exceeded US$5.2 billion. Looking back at the entire third quarter, the NFT market generated more than $10.67 billion in transaction volume. This is a significant increase of 704% from the previous quarter and a year-on-year increase of 38,060%.


The outstanding performance is not single, but multiple reasons. The NFT field is completely evolving. The NFT project expands more use cases, making it more than a simple profile picture. In addition, some NFT collections are becoming brands. The addition of celebrities such as Snoop Dogg, Shaquille O’Neal and Steve Aoki has further strengthened the social prospects of the NFT market.


In addition, NFT projects like CryptoPunks or Bored Ape Yacht Club (BAYC) and the rise of Metaverse have pushed the NFT field into the mainstream. For example, in August, Visa purchased CryptoPunk #7610 for US$150,000; in September, Sotheby’s, a well-known art, jewelry and collectibles brokerage company, successfully completed the auction of 101 BAYC NFTs for US$24.4 million.

The mainstream media coverage is expected to increase further. In recent months, top fashion brands such as Gucci, D&G and Burberry have stepped into the NFT field. D&G completed the sales of its distinctive digital fashion collection on September 27, with total sales of 5.65 million US dollars.

In addition to the mainstream signals sent by celebrities and big brands, another aspect will become more and more important in the NFT field: having the utility provided by NFT. Whether by obtaining additional NFT rewards (Meebits, Punks Comic, etc.) or by generating passive income, these NFTs are looking for a way to reward digital art owners. 

For example, projects such as CyberKongz and SupDucks provide passive income to holders through the NFT of the platform. In CyberKongz, Kongz NFT holders will receive 10 BANANA as income every day. At the current BANANA price, this is equivalent to $497 per day.

When NFT collides with the game field, the role of NFT will become more important. NFT is one of the main pillars of blockchain games. Compared with traditional games, NFT allows chain game players to have real ownership of their game items. In the third quarter, in-game items generated $2.3 billion in transaction volume, and this accounted for 22% of the total NFT! This shows that the game is having a real synergy with NFT.


DeFi status

Although most of the current spotlight in the crypto market is attracted by NFTs and games, the panorama in the DeFi competition has become more interesting. At the end of the third quarter, the total lock-up value (TVL) in the DeFi field was approximately US$178.12 billion, of which 92.37% (US$166.38 billion) were locked in 6 public chains. Compared with the end of the previous quarter, TVL in the DeFi field increased by 104%, reaching a peak of US$195 billion on September 6. 


Although Ethereum is still the leading blockchain in terms of TVL, the progress made by the three public chains of Solana, Terra and Avalanche is exemplary. Solana, like several other networks, directly benefited from the shortcomings of Ethereum’s high transaction costs. Solana’s TVL has reached 8.28 billion U.S. dollars, an increase of 1,300% over the previous quarter. Considering only TVL, Solana is currently the third largest DeFi public chain.


Terra has become the fourth largest DeFi public chain in TVL. It has one of the most traded stablecoins in the industry, namely Terra USD (UST). Currently, Terra’s TVL is 8.09 billion U.S. dollars, an increase of 137% from the previous month. Terra’s DeFi ecosystem has four Dapps with TVL worth more than $1 billion. For example, the revenue optimizer Anchor’s TVL has exceeded $3 billion, while Terra’s Lido has $2.5 billion. We can continue to be optimistic about the potential of DeFi in the Terra network. 


Binance Smart Chain (BSC) is the second largest DeFi public chain. BSC has a TVL of USD 17.78 billion, an increase of 9.98% from the previous quarter. Although BSC users have turned their attention to GameFi-type Dapps, the TVL of the public chain is still rising.


One of BSC’s most important DeFi is PancakeSwap, which is the most commonly used Dapp for BSC users. PancakeSwap’s TVL was $8.71 billion at the end of the third quarter, an increase of 39.83% from the previous quarter. The app has 3.06 million active wallet addresses in the past 30 days, an increase of 21% from the previous month. PancakeSwap’s prospects are bright, because the dapp is launching its own NFT collection, which can be traded on the same platform. There is no doubt that PancakeSwap is the “jewel in the crown” of BSC. 

Polygon ‘s DeFi outlook does not seem to be as optimistic as it was three months ago. Currently, Polygon’s TVL is US$3.02 billion, which was surpassed by Terra, Solana and Avalanche this quarter.



After observing the development of the crypto market in the third quarter, there are many reasons to be excited. As DappRadar CEO Skirmantas Januskas pointed out, “The blockchain industry has achieved considerable results in the last quarter-a 25% increase in active wallet addresses is no easy task. But what really makes people scream is’ Dapps has gained the development of the game, changes in attitudes, and new trends that have emerged in these short three months.”

“Diversification means more use cases, and more use cases means more adoption. The industry is expanding. Encryption is not just a basket of assets in the portfolio, it is also beginning to permeate daily life.”

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