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Because of its fresh ape and rock mania, the NFT market has been in the spotlight for the past several days. This increased attention, however, has come at a cost, with DeFi tokens bearing the unintended consequence.
People’s interest in DeFi has dramatically waned, according to recent data.
Data from Google Trends, for example, can be utilised to demonstrate the significant disparity in NFT and DeFi search volumes. At the time of writing, the above-mentioned ratio stood at 5:1.
Ripple effect on on-chain activity?
Well, as per Glassnode’s latest report, on-chain activity for all massive blue-chip tokens has taken a hit of late. As can be seen from the individual charts curated below, the active addresses interacting with Aave, Uniswap, Compound, and Yearn Finance have been on a downtrend.
The USD value transferred in the tokens too, for that matter, has fallen off recently.
The report observed,
“Across the board, it paints a somewhat bleak picture, with all four seeing structural declines in investor attention, most breaking to new lows this week in particular.”
Further, according to IntoTheBlock, not more than 70% of the token HODLers, on average, are in profit. Notably, during the April-May phase earlier this year, up to 90% of the HODLers were recording gains.
At the time of writing, net-flows on exchanges were also positive, indicating that people were selling their tokens. Consider the University of North Carolina at Chapel Hill.
Inflow quantities were 101.8k tokens and 317.4k tokens across the 24-hour and 7-day timeframes, respectively. Additionally, trades-per-side data highlighted the advent of sell-side pressure for other tokens. For example, in the last 6 hours, 3.9k more AAVE tokens, 2.2k COMP tokens, and 37.37 YFI tokens have been sold than bought.
The bright side
Nonetheless, activity on Github has been going at a swift pace across all respective ecosystems. The rise in the number of Open Issues, Stars and, Commits further endorses the fact that developers have been committed to their work.
Furthermore, at this point, it is not possible to turn a blind eye to the ‘W-shaped’ recovery recorded by the Total Value Locked up in DeFi. In retrospect, the trend change was also seen in the value locked up on each protocols individually.
As a result, long-term HODLers have nothing to worry about at this point. They’ve gone through such tumultuous times in the past and come out on top. As a result, unless the situation of the aforementioned measures improves, the game will be all about patience.