DappRadar’s Q2 Industry Report Shows NFTs and Web3 Games Still Enduring Extreme Market Conditions

DappRadar, the world’s dapp retailer that brings high-quality, correct insights on decentralized functions, has revealed its Q2 Dapp Industry Report, which reveals how NFTs and GameFi are a silver lining for the way forward for dapps amid the doom and gloom of rising crypto winter. 

The report highlights how the dapp {industry} has felt the brunt of widespread turmoil within the cryptocurrency market. Notably, it reveals the variety of each day Unique Active Wallets (UAW) interacting with blockchain dapps fell to simply 1.78 million on common in July. That’s the primary time dapp UAW has did not surpass the two million milestones in any month since September 2021. Overall, 2.11 million UAW related to blockchain dapps in Q2, down 11% from the earlier quarter. On the intense facet, that’s nonetheless up 62% from a 12 months earlier. 

Dapp exercise has been chilled by a harsh crypto winter that has seen the value of most cryptocurrency belongings fall by 70% or extra from their all-time excessive values. Adding to the issues in the course of the second quarter was the unprecedented collapse of the Terra ecosystem and severe liquidity points for a few of the main platforms within the CeFi house, together with BlockFi, Celsius, Voyager, and VC agency Three Arrows Capital (3AC). 

Moreover, the DappRadar Q2 Dapp Industry Report digs into how the collapse of Terra altered the blockchain panorama, inflicting the crypto {industry} to lose 34% of its worth and fall beneath $1 trillion in whole worth locked for the primary time since January 2021. It additionally appears to be like on the issues created by the liquidity crunch in quite a lot of main CeFi dapps and how this strengthens the case for self-custody of crypto belongings. Further, it highlights ongoing safety considerations in an {industry} that misplaced greater than $676 million price of crypto belongings to hackers in Q2. 

Despite the doom and gloom, the report discovered quite a lot of causes to stay optimistic concerning the dapp {industry} general. Notably, whereas Ethereum NFT buying and selling volumes have been down 40% from the previous quarter, gross sales depend over the identical interval rose by 2%, indicating that demand for digital belongings has elevated over the interval. Some of Ethereum’s rival blockchains have been additionally vivid spots. For instance, Solana NFT commerce worth bucked the pattern, doubling from the primary quarter, whereas buying and selling quantity jumped 23%. 

Moreover, quite a lot of blue-chip NFT collections have endured the crypto downturn remarkably effectively, holding their worth and making a powerful case for themselves as a safer funding than conventional crypto belongings. The market capitalization of Ethereum’s prime 100 NFT collections surpassed 6 million ETH for the primary time, rising 7% as ETH’s value in U.S. {dollars} fell 72% in the course of the quarter. 

The resilience of the blockchain gaming {industry} is one other optimistic takeaway from the report. Although the dapp {industry}’s UAW declined 26% within the quarter, blockchain video games solely noticed a slight 5% lower in UAW. Newer titles corresponding to Sunflower Land have been among the many highlights, growing its user-base by a whopping 129%, whereas “move to earn” video games corresponding to Stepn additionally achieved robust progress. Moreover, blockchain video games continued to draw document enterprise capital investments, signaling a bullish future for the phase general. 

About DappRadar

Founded in 2018, DappRadar is the the World’s Dapp Store: a world decentralized functions (dapps) retailer, which makes it straightforward for its base of greater than 1 million customers per thirty days to trace, analyze, and uncover dapp exercise by way of its on-line platform. The platform at the moment hosts greater than 10,000 dapps from throughout 30+ protocols and presents a plethora of consumer-friendly instruments, together with complete NFT valuation, portfolio administration, and each day industry-leading, actionable perception.

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