A recent report from DappRadar reveals that the total value locked (TVL) in decentralized finance (DeFi) applications has reached a new monthly high of $192 billion, marking a 17% increase in May. This growth is primarily driven by the rise in Ethereum (ETH) and increased trading activity.

Ethereum accounted for a significant 68% of the overall DeFi TVL, amounting to $130 billion. This is a testament to the platform's continued dominance in the DeFi space. Solana's TVL ranked second with $10.9 billion, accounting for 5.7%, and saw a month-on-month increase of 14%. This growth is a positive sign for the Solana ecosystem, which has been gaining traction in recent months.

Despite the rise in TVL, the number of unique active wallets (UAW) in DeFi decreased by 21%, down to 1.75 million. This suggests that while more value is being locked in DeFi applications, the number of users actively participating in these applications is decreasing. This could be due to a variety of factors, including market volatility and the complexity of DeFi applications.

The report suggests that the increase in TVL is mainly due to short-term speculation triggered by the popularity surrounding Ethereum ETFs. This is a concerning trend, as it may indicate that investors are more focused on making quick profits rather than long-term investments in DeFi applications.

In conclusion, the growth in DeFi TVL is a positive sign for the industry, but it is crucial to consider the underlying trends and user behavior. The decrease in unique active wallets is a concern, and it is essential to ensure that DeFi applications remain accessible and user-friendly to maintain a healthy and sustainable ecosystem.