DeFi Dominated in 2024, DappRadar Report Shows

Decentralized finance (DeFi) stole the show in the Dapp industry this year, according to DappRadar.

In its 2024 Industry Report, DappRadar found that DeFi was the most dominant category by activity, growing by 532% to a year-end tally of seven million unique active wallets (UAW) and 32% market dominance. Total value locked (TVL) increased 211% to $214 billion.

Several factors contributed to this, including memecoins, the launch of AI agents and U.S. Federal Reserve rate cuts that “reignited interest in DeFi lending protocols,” driving investors to platforms like Aave and Compound in search of better rates of return, the report said.

Memecoin boom

However, memecoins were the big story, with tokens such as GOAT and PEPE reigniting “retail interest, driving liquidity and activity across DeFi platforms,” it said. “These highly speculative tokens often acted as gateways for users exploring DeFi for the first time.”

In the second half of the year, AI agents “introduced a transformative layer to the ecosystem” by facilitating tasks like “trading and governance, streamlining operations and driving user engagement,” the report said. “This innovation is likely to be further explored and expanded in 2025, positioning AI as a core component of DeFi’s evolution.”

Among Layer 1 chains, Solana was the standout, with its TVL up 2,000%, followed by Sui at 1,288%, Aptos at 1,178% and Base at 1,152%.

NFTs flame out

After a decent first quarter, NFTs ended up with the worst annual performance since 2020, with a trading volume of 49.8 million and $13.7 billion in sales. Trading volume was down 19% and NFT sales down 18% compared with 2023.

That said, Q4 showed some improvement and overall, sales prices were higher in 2024 than 2023.