Gaming NFTs and metaverse were least affected by the Luna-Terra debacle, says a new report by decentralised application (DApp) data aggregator DappRadar. It should be noted that the Terra stablecoin collapsed in May, erasing around $40 billion of venture capitalists and retail money. The stablecoin blow applied heavy pressure on the entire crypto market, starting with Bitcoin and Ethereum, which had a spillover effect on the rest of the industry, also known as the crypto crash.
However, blockchain games have still spiked by 9.51 per cent in the second quarter of 2022. In fact, $2.5 billion were invested in blockchain gaming in both Q1 and Q2, as per the report. “We think that blockchain gaming is going to be key in the next two or three years and is going to bring at least 100 million new users into crypto, for one simple reason, they connect NFTs and DeFi. With all three combined, blockchain gaming, NFTs and DeFi you will see something genuinely new and exciting,” said DappRadar’s CEO Skirmantas Januskas.
The DeFi landscape was the most affected blockchain vertical. Transactions in DeFi have fallen by 14.81 per cent. Meanwhile, the NFT market shows a 67 per cent decline in trading volume and 21 per cent in the number of transactions since May. “The most significant drop happened in May, transaction volume decreased by 67%, and the sales count dropped by 21 per cent,” the report said.
Meanwhile, the average amount of unique active wallets (UAWs) interacting with various NFT projects has also declined significantly by 24 per cent since May. However, the silver lining is that although the setbacks compared to Q2 of 2021, the activity is still up by 48 per cent.
The report also reveals that India and Russia have some significant concerns in terms of crypto regulation.”Regulation is never warmly appreciated within the crypto community. Many hardliners criticize legislation as going against the core facets of crypto being autonomous and decentralized. Many fear that incoming regulation will stifle the creativity and freedoms that many in the industry enjoy,” Januskas added.