Analysts believe that the direction of decentralized applications continues to develop actively
The consequences from the FTX bankruptcy has had a negative impact on the cryptocurrency industry, and some experts argue that the market should brace for more losses. However, DappRadar analysts are optimistic, stating that Web3 remains resilient.
Due to the collapse of FTX, the direction of decentralized finance suffered. According to a Dapp Radar report, since the beginning of this month, the total value of crypto assets on DeFi platforms (TVL) has decreased by more than 20%, from $83 billion to $65 billion. For example, Ethereum TVL fell from $51 billion at the beginning of November to $41 billion in mid month.
The TVL of other crypto projects also dropped. However, analysts believe that the direction of decentralized applications continues to develop actively, despite the collapse of FTX. Activity on the EOS, Hive, Wax, Ronin, and IMX gaming networks has been stagnant over the past few years with no significant fluctuations.
Experts noted that the reason for the low trading volume on the NFT market lies in socio-economic prerequisites, and not in the weakening of the interest of collectors. In the first 14 days of November, the number of sales decreased by almost 24%.
Meanwhile, Billy Marcus from Dogecoin, also known under the pseudonym Shibetoshi Nakamoto, expressed the opinion that the potential bankruptcy of the Binance platform or the Tether crypto project could seriously destabilize the entire market. The programmer stated that more and more people are realizing that over-centralization is a “big weakness”.
Nevertheless, the co-creator of DOGE is confident that negative events do not mean the automatic “death of the cryptocurrency”, but will become a prerequisite for a “major market crash”. So far, the fears of some players in the digital asset industry have not been realized.
Binance representatives recently released a statement saying that the company’s balance sheet is stable. The crypto project even replenished its User Safe Asset Fund (SAFU) up to $1 billion to protect clients in the event of an unforeseen situation.
