DappRadar reports increased web3 developers and adoption as the Terra crisis & macroeconomic situation aggravated the bear season.
Analysis and DApp recovery network DappRadar unveiled a compressive report evaluating the crypto market stance in May. It concentrated on three areas: crypto games, NFT activities, and DeFi, highlighting that the Terra fall didn’t affect the entire decentralized finance marketplace.
NFT trading volume dropped 6% from April as far token prices are concerned. Moreover, blockchain games saw a steady interest during crypto downturns.
DeFi Is Still Alive
CryptoPotato shared the DappRadar’s market report, terming DeFi the most deteriorated space in May. The industry boasted $117 million in TVL (total value locked), 45% down from figures seen during April’s end. Tron was among the only DeFi protocols that saw a positive TVL, increasing by 47% MoM, whereas most leading projects saw declines.
Though UST and LUNA’s historic crash exacerbated weakness, the report revealed that the DeFi sector is still alive, achieving an 11% YoY in total value locked increase. Furthermore, leading DEX Uniswap explored the $1T transaction volume milestone during the month.
Non-fungible tokens’ transaction volume lost 20% MoM (in USD), but this figure would drop to 6% when perceived in NFTs’ native tokens. That indicates the bear market didn’t discourage enthusiasts from interacting with the sector (according to the report).
For instance, Solana NFTs acquired $335 million in all marketplaces, a 13% growth from April, defying broad market situations. Though blue-chipped projects such as MAYC and BAYC saw their floor prices plunging, the NFT marketplace retained its momentum, with new protocols attracting new investors.
Meanwhile, increased marketplaces competition from Wax’s Atomic Hub and Solana’s Magic Eden had OpenSea’s dominance plummeting. Coinbase Marketplace appeared as ‘a failed experiment, generating $2.5 million since its 20 April 2022 inception.
The report added that the NFT space gas consolidated since January 2022 peaks, regardless of the latest decline.
Blockchain Games Resilience
Blockchain didn’t suffer like DeFi and even NFTs, with its transactions losing 5% only from April. Moreover, the report highlighted a 16z’s $4.5B commitment to boost Metaverse and blockchain games. It also attributed the recent move-to-earn craze (gamification embedded in physical activities) as the new incentive to attract individuals plus sustain the industry’s growth.
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