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- 1 Gaming is the primary driver of the growth of the decentralized app (dApp) sector.
- 2 NFT sector’s trading volume plunged by over 60% during February and May 2023.
Ever since the regulatory clampdown from the Securities and Exchange Commission (SEC), the crypto market has gone through a tumultuous period leading to a major decline in asset prices. However, the decentralized app (dApp) market has remained immune to the damage. Data aggregator DappRadar recently issued a report dubbed ‘Regulatory Challenges Don’t Halt 1.4% UAW Rise’ shedding light on June 2023 metrics of the industry.
Games Drove dApp Marker in June
The dApp industry saw a 1.4% uptick in daily unique active wallets (dUAWs) with an average of almost a couple of million addresses. Gaming is still at the heart of the sector, accounting for 36% of the activity with over 716K dUAWs. Web3 gaming grew by 1% in the month with gaming giants including SEGA and Ubisoft planning to launch their first Web3 games later this year. Decentralized finance (DeFi) industry follows the dApp industry, registering 693K wallets.
However, the DeFi market, as a whole, declined by 1.86% with Ethereum (ETH), second largest blockchain, holding 70% of the market share. The total value locked (TVL) has languished from $83.6 Billion in Q1 2023 to $77.6 Billion in Q2 2023. Currently, total DeFi TVL amounts to $46.54 Billion according to DappRadar data. Report cites regulatory crackdown as a significant factor in the shift. Additionally, ETH staking has increased by 20%.
TVL on Ethereum blockchain shows a monthly uptrend, gaining almost 3%, Avalanche (AVAX) TVL increased by 1.21%. Whereas, other networks including Tron (TRX), Optimism (OP), Arbitrum (ARB) and more declined. The report suggests that DeFi sector may witness a significant growth following increased trust in the sector. Additionally, several DeFi crypto assets gained between 24% to 34% in June 2023.
NFT Sector Rebounds After 3 Three Months
The non-fungible token (NFT) market had a positive month after shrinking for three consecutive months. Between February and May, 2023, trading volume plunged by over 60% and sales fell by almost 40%. Nonetheless, total sales swelled by 16%, from 3.63 Million in May to 4.24 Million in June, and volume added almost 30%, from $0.68 Billion to $0.88 Billion during the same period.
Native collections of Yuga Labs, Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC), managed to the top three. BAYC stayed at top with $157.7 Million in sales, while MAYC came third with $89.6 Million, beaten by Azuki NFT with $128.8 Million.
Blur, an NFT trading platform, outshined the biggest NFT marketplace, OpenSea, in June. The former registered $565 Million while the later managed $164 Million in sales volume. However, OpenSea still remains the preferred network for NFT enthusiasts as the ecosystem clocked 330K traders during the month.
Gaming has clearly driven the adoption of blockchain as its utility expands, the report notes. However, the gaming community is not entirely pleased with the integration of blockchain with the multi-billion dollar industry. Blockchain is associated with a negative impact on the environment. Gamers are also concerned that the monetization would kill the enjoyment from games.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
