Are Ethereum, Binance Whales invested in both DeFi and NFTs?

Over the last few weeks, the tumult around DeFi and NFTs has fallen in volume as the price action on large cryptocurrencies is at the center. In the background, activity is still prominent, but an important observation is the fact that many speculators club the narrative of DeFi, NFTs as one. While DeFi or various dApps have some form of functionality, NFTs are just prized collectibles.

With Ethereum and the Binance Smart chain leading the Defi and NFT markets, we analyzed market data to understand whether investors are equally invested in DeFi and NFTs, or whether one takes precedence over the other.

DeFi Whales galore at Ethereum, not so much at BSC

By breaking down data from Q3 2021, it was observed that despite massive interest in NFTs and blockchain games, the DeFi space recorded over 590,000 daily unique active whales, reaching $ 178 billion in collective TVL. Between both Ethereum and Binance Smart Chain, whales were observed to thrive more on the former network, where the average Uniswap transaction size reached $ 52,900. PancakeSwap did not reach over $ 1000.

Source: DappRadar

Right now, the whale concentration can be observed most on ETH protocols despite the fact that tx fees or gas fees are generally higher than BSC. With higher liquidity volumes, ETH DEXs reduced latency, enabling better price performance, minimizing price steps.

Source: Coingecko

However, according to the latest 24-hour trading volume, PancakeSwap was currently removing Uniswap with a narrow 1.3% market share measured in volume. While consistent whale activity may not be evident on PancakeSwap and BSC, it may be the platform where regular retailers find their way, and for them, cheaper gas charges are a big plus.

NFTs are also involved

Source: DappRadar

After identifying the presence of whales in Ethereum and Binance, data were established in the form of wallets that interacted with at least one DeFi protocol and had an NFT token. According to the chart above, 83% of users in both Ethereum and the Binance Smart chain in October 2021 only interacted with DeFi, while less than 17% were involved in both NFTs and DeFi.

Therefore, while interest in NFTs and games is largely vocalized and marketed, the numbers continue to favor the functionality of protocols, and NFTs may lose traction in the future.

Is that the whole truth?

To be honest, it is not fair to ignore NFTs right from the start as they achieve some kind of utility where they bring in a new class of investors. NFTs bring in almost a form of exclusivity, as investors may have a collection that is completely separate from another.

Has it actually realized value? Probably not, but NFTs tied to a recognized person will attract the attention of the masses, for example, a Cristiano Ronaldo NFT will be sold for millions, just because of the brand value the name entails. Therefore, the negotiability factor for NFTs is definitely present. Although it is still very small in the larger industry and it has a long way to go.

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