According to statistics, user adoption and the number of web3 developers increased during the bear season, which was exacerbated by the macroeconomic crisis and Terra’s crisis.
Defi, NFT activities, and crypto games
In May, DappRadar, a DApp discovery and research tool, published a thorough report on the condition of the crypto industry.
It primarily explored three topics: DeFi, NFT activities, and crypto games, concluding that the Terra disaster had little impact on the broader DeFi ecosystems.
When measured in token prices, NFT trade volume was only down 6% from April, and interest in blockchain games remained strong despite crypto selloffs.
DeFi was the most battered sector in May, according to DappRadar’s data.
The industry had a total locked value (TLV) of $117 million, which was 45 percent lower than what it had attained by the end of April.
Tron was the only DeFi protocol to post a positive TLV statistic — a 47 percent rise MoM – whereas the rest of the big projects all recorded reductions.
Despite the sector’s apparent weakness, which was compounded by Terra’s historic collapse, the study noted that it is “far from dead,” citing an 11 percent YoY increase in TLV.
Uniswap, the main decentralized exchange, also hit a $1 trillion transaction volume milestone in the same month.
The downturn in the NFT market
When evaluated in USD, NFT transaction volume declined 20% month over month, but when measured in the NFTs’ native tokens, the reduction was just 6%.
According to the research, the bear market did not fundamentally affect people’s beliefs in the industry.
It’s worth mentioning that Solana NFTs earned $335 million across all markets, up 13% from April, defying the market’s general state.
Despite the fact that blue-chip projects like BAYC and MAYC have seen their floor prices plummet, the NFT industry has maintained its momentum as new protocols continue to gain volume from investors.
OpenSea’s market share has decreased as a result of increased rivalry from Solana-based Magic Eden, Wax’s Atomic Hub, and others.
Since its introduction on April 20th of this year, Coinbase Marketplace has only produced $2.5 million, making it a “failed experiment.”
Despite the recent downturn in the NFT market, the quickly developing sector has been in a consolidation stage since January this year, according to the research, and its interaction with non-crypto-native people has reshaped the present crypto environment.
In comparison to DeFi or even NFTs, blockchain games suffered the least, with only a 5% drop in transactions from April. Meanwhile, a16z’s $4.5 billion pledge was cited in the paper as a boost to the Metaverse and related blockchain games.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.