July proved to be a breakout month for Web3. The decentralized finance (DeFi) sector, especially, which drover much of the momentum, according to DappRadar.
Total value locked (TVL) surged over 30% to end the month at $259 billion and briefly touched an all-time high of $270 billion on July 28.
Tokenized Stock Boom
The spike was indicative of a growing investor confidence, fresh capital inflows, and stronger user demand across lending protocols, decentralized exchanges, and tokenized asset platforms.
One of the month’s most striking developments came from tokenized stocks, where the number of wallets interacting with these assets skyrocketed from roughly 1,600 to more than 90,000. This surge managed to lift their market capitalization by 220%.
DappRadar explained that the boom points to real-world assets (RWA) nearing a tipping point in adoption.
Meanwhile, Ethereum maintained its position as DeFi’s leader, as it recorded $166 billion in TVL compared to Solana’s $23 billion.
Ether’s price jumped nearly 60% during the month, owing to favorable regulatory sentiment, while staking rewards climbed to 29.4% APY.
On Solana, derivatives-focused Hyperliquid emerged as a revenue powerhouse, and accounted for 35% of all blockchain revenue in July. The platform now commands 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 took center stage as US lawmakers advanced crucial legislation. The GENIUS Act created a stablecoin regulatory framework, while the CLARITY Act, defined digital asset classifications between the SEC and CFTC.
Adding to the momentum, 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.
From Slump to Surge
The NFT market also staged a significant comeback during the same period The report revealed that the sector even surpassed DeFi in activity for the first time in months.
According to market data, NFT trading volume surged 96% to $530 million, even as sales dipped 4% to 5 million. The average NFT price more than doubled from $52 in June to $105 in July, as demand for blue-chip collections surged from from high-value traders.
On Ethereum, Blur captured up to 80% of daily NFT volume, which was fueled by professional traders and its Blend lending protocol. OpenSea, on the other hand, maintained its dominance in user numbers, and averaged around 27,000 daily traders with strong cross-chain listings.
Zora saw growing adoption through its creator-focused Layer 2 and ZORA token, which offers low-cost, accessible NFT minting.
Major brands also made moves. For instance, Starbucks concluded its Odyssey NFT loyalty pilot, Nike’s .SWOOSH collaborated with EA Sports for in-game virtual sneakers, and Louis Vuitton, Rolex, and Coca-Cola (China) launched NFT pilots linked to authentication and collectibles.
Additionally, entertainments and sports players like Netflix, NBA Top Shot, and FIFA continued projects with clearer licensing frameworks.
“The big shift? NFTs are evolving from hype to utility, from collectibles and culture to identity, ticketing, gaming, and tokenized real-world assets.”
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