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A report reveals that blockchain gaming and the Metaverse have shadowed the collapse of Terra in May. However, DeFi and NFTs were proved to be quite lucky.
A DappRadar report from July 29 has pointed out that the Terra collapse is quite similar to the 2008 subprime mortgage crisis. The Terra collapse had led to prominent crypto firms such as Three Arrows Capital (3AC) going bankrupt.
The report mentions: The Terra debacle has turned into a Lehman brothers-like event. It has instilled aftershock waves in the whole crypto industry, which will affect the crypto industry for so many months.
Dappradar showed that the blockchain gaming and Metaverse projects didn’t have many flaws and are showing optimistic growth in the same period.
Moreover, the report also suggests that the Terra collapse had an impact on the performance of different sectors in crypto between the first two quarters of this year.
The total number of completed transactions is another key metric that points toward the user engagement. DeFi and NFTs have experienced a heavy decline of 14.8% and 12.2% respectively. On the other hand, Blockchain games and NFT-related metaverse projects have recorded an increase of 9.51% and 27% each.
Further, in Q2, the report mentions that the average amount of activity from unique active wallets (UAWs) in NFTs has experienced a drop of 24%. Blockchain gaming experienced a decline of 7%. It indicates that the users are still interacting with gaming dAPPs at the same rate before the Terra incident.
In a separate DappRadar report from July, the firm suggested that blockchain gaming may have been able to hold up better than other crypto sectors last quarter due to the non-speculative aspects of the games themselves.
Another DappRadar report from July indicated that blockchain gaming has done more growth than other crypto sectors in the last quarter.
According to the report, the bullish activity indicates that the profitability of the end-user didn’t predict the virtual world. It reveals that the virtual worlds remain fun to the end-user while the community remains active even after the devaluation of native tokens.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
