---
title: "DeFi and NFT Upticks in May Could Mark Start of Recovery"
url: https://diffcoin.com/defi-and-nft-upticks-in-may-could-mark-start-of-recovery/
description: "Ethereum regained NFT market dominance with a 30% volume increase and a 53% market share, ahead of all competitors."
published: 2025-06-07
updated: 2025-06-07
author: "Mila"
site: "Diffcoin"
---

# DeFi and NFT Upticks in May Could Mark Start of Recovery

As Bitcoin surged to a new all-time high in May, sparking momentum across cryptocurrencies, the decentralized app industry also saw a revival.

In fact, DappRadar’s latest findings identify May 2025 as a turning point for the dapp sector. During the same period, the NFT market also saw signs of life.

## Turning Point for the Dapp Ecosystem

In May, the dapp industry exhibited renewed optimism as the daily Unique Active Wallets (dUAW) rose 8% to 25 million, amid broader positive market trends. Notable growth was seen in three key sectors: AI dapps surged 23% to 4.8 million dUAW, social dapps grew 21% to 4.3 million, and NFT dapps increased 9% to 3.9 million.

These sector-specific gains indicate stronger user engagement and contribute to a more balanced dapp ecosystem, according to DappRadar’s report. Meanwhile, AI, DeFi, and gaming dapps were found to have been converging in terms of user activity, and each captured a similar share, which evidenced a diversified and maturing market

The DeFi sector also maintained strong growth as the Total Value Locked (TVL) surged by 25% to around $200 billion. This growth aligns with the overall market rally, driven by Bitcoin’s new all-time high and Ethereum’s 40% price increase, which boosted DeFi asset values and liquidity.

Decentralized exchange Hyperliquid stood out by reaching $244 billion in trading volume, capturing about 10% of Binance’s market share despite massive criticism from prominent industry players after the controversial handling of a market manipulation incident. This achievement positioned Hyperliquid among the top 5 exchanges by trading volume, across both centralized and decentralized platforms, and within the top 10 by TVL across all blockchain networks.

## NFT Market Rebounds

Meanwhile, the NFT market showed renewed activity in May, with trading volume rising 40% month-over-month to $280 million. Transaction counts also climbed 35%, totaling 2.7 million. Although these figures signal improving momentum, DappRadar said that it is premature to call it a full recovery. Continued growth over the coming months will be crucial, but the recent gains still offer a promising sign for the sector.

Ethereum regained its lead in the NFT market in May, with a 30% jump in trading volume and a 53% market share. It was followed by Immutable zkEVM at 13% and Abstract at 10%. Abstract’s 1200% surge was largely driven by speculation tied to farming incentives and potential airdrops.

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