DeFi Kingdoms asserts its dominance
Two dapps are leading the way when it comes to total value locked on Harmony right now, driving the majority of the $210 million TVL in the network. Moreover, DeFi and GameFi applications on the Harmony blockchain are seeing a lift as the total value locked across all DeFi blockchain applications hits a landmark of $2 billion.
With $210 million in TVL, the Harmony blockchain is still a little fish in the DeFi pond, but things can change quickly. Currently, the blockchain’s growth comes from two projects: DeFi Kingdoms, a gamified investment platform, and the cross-chain decentralized exchange SushiSwap. However, in recent months we’ve seen Solana, Avalanche, and Terra grow their TVL at a rapid pace. One might argue Harmony is next.
Aside from the value locked on Harmony, we see increasing usage for all dapp across their ecosystem. As mentioned, DeFi kingdoms are leading the charge having attracted 34% more active wallets week over week. While ViperSwap appears to be establishing itself as the Harmony blockchains native token exchange, attracting a little over 5,000 unique active wallets in the last 7 days.
Cross-chain behemoth SushiSwap is certainly attracting value though, despite not attracting the same number of active wallets, its TVL stands at over $93 million. Almost 50% of the Harmony blockchains entire TVL.
Dapps can flourish on Harmony
Harmony is fully EVM compatible, making it very easy to move Ethereum dapps to their ecosystem. Dapps run on the blockchain with 2-second transaction finality and fees that are 100 times lower than Ethereum. Users can smoothly move their assets using secure bridges from Harmony to other blockchains, for example, Ethereum and Binance Smart Chain.
The reason we mention transaction times and fees when describing a blockchain game such as DeFi Kingdoms is that a player may have to complete many transactions whilst playing. For example, completing a mission, buying a sword, opening a loot box, speaking to another player. These actions in the game can all be thought of as transactions. Each one requires a ‘signature’ from your blockchain wallet and an associated fee. On Ethereum, those fees are gas fees and have been running to double digits lately. Imagine, having to pay $10 to perform a simple action in the game – you wouldn’t. Hence the rise of alternative blockchains like Harmony, Solana, and Avalanche that offer extremely cheap, and fast transactions.
What is DeFi Kingdoms?
DeFi Kingdoms is a game, an exchange, a liquidity pool opportunity, and a marketplace for rare utility-driven NFTs. All played out in the form of a fantasy pixel art dungeon crawler-style game. Moreover, It blends the appeal of decentralized finance and play-to-earn game mechanics. The JEWEL token is used to purchase items and unique NFTs such as Heroes and Kingdoms in the game, as well as various in-game items. Not only is the token used in-game, but it is also used for liquidity mining to earn more through staking. JEWEL is also a governance token so holders will have a say in the growth and future direction of the platform. Which has led to over $40 million in JEWEL being locked up by players to date.
The fact a gamified investment opportunity such as DeFi Kingdoms is leading the way on Harmony only reflects what is happening across the industry as a whole. According to the latest Q3 DappRadar Industry Report, the third quarter of 2021 saw the blockchain industry expand its usage by 25% from the previous quarter, reaching more than 1.54 million wallets connected on a daily average. At the same time, wallets connecting to game dapps increased 140% quarter over quarter, while DeFi-connected wallets decreased by 11%.
“My inkling is that within a couple of years most, if not all games will have tokenomics baked in. And this is the very least that could happen in the foreseeable future. With DeFi and NFTs intersecting with games, I believe we’re ushering in a whole new era for our space — one where we would play, earn, socialize in a complete virtual overlay to our reality. We’re probably not too far off this future,” Dragos Dunica, CDO, DappRadar.
DappRadar tracks 20 dapps in the growing Harmony ecosystem, giving consumers insight into individual dapps and categories. Use the Harmony Rankings to easily see which dapps have seen the most activity in the past 24 hours, 7 days, or 30 days.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds positions in ETH, BTC, ADA, MATIC, SAFEMOON, HEX, LINK, GRT, CRO, OMI, USDT, SOL, SHIBA INU, AVASTR, RAY, BOSON, AND OCEAN