July was a breakthrough month for Web3, with the decentralized finance (DeFi) sector leading the way, according to DappRadar. Total value locked (TVL) in DeFi increased by over 30% to reach $259 billion, reaching an all-time high of $270 billion on July 28. This surge was driven by growing investor confidence, increased capital inflows, and higher user demand for lending protocols, decentralized exchanges, and tokenized asset platforms. One of the most notable developments in July was the rise of tokenized stocks, with the number of wallets interacting with these assets increasing from 1,600 to over 90,000. This led to a 220% increase in their market capitalization, indicating a growing adoption of real-world assets (RWA). Ethereum remained the leader in DeFi, with a TVL of $166 billion compared to Solana’s $23 billion. The price of Ether also saw a 60% increase during the month, thanks to positive regulatory sentiment, while staking rewards reached 29.4% APY. On Solana, Hyperliquid, a derivatives-focused platform, emerged as a major revenue generator, accounting for 35% of all blockchain revenue in July. The platform now holds over 60% of daily perpetual futures volume, with $15.3 billion in open interest, and processed $5.1 billion in USDC bridge transactions. Policy developments also played a significant role, as US lawmakers made progress on crucial legislation. The GENIUS Act established a regulatory framework for stablecoins, while the CLARITY Act defined digital asset classifications between the SEC and CFTC. In addition, SEC Chair Atkins unveiled “Project Crypto,” a roadmap to integrate DeFi into traditional finance through new standards for token issuance, custody, and sector-specific compliance. The NFT market also saw a significant rebound during the same period, surpassing DeFi in activity for the first time in months. NFT trading volume increased by 96% to $530 million, while sales decreased by 4% to 5 million. The average NFT price more than doubled from $52 in June to $105 in July, driven by demand from high-value traders for blue-chip collections. On Ethereum, Blur dominated daily NFT volume, with up to 80% of trades coming from professional traders and its Blend lending protocol. OpenSea maintained its lead in terms of user numbers, with an average of 27,000 daily traders and strong cross-chain listings. Zora also saw increased adoption through its creator-focused Layer 2 and ZORA token, which offers low-cost, accessible NFT minting. Major brands also made moves in the NFT space, with Starbucks concluding its Odyssey NFT loyalty pilot, Nike’s .SWOOSH collaborating with EA Sports for in-game virtual sneakers, and Louis Vuitton, Rolex, and Coca-Cola (China) launching NFT pilots linked to authentication and collectibility.
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