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Blockchain Games and the Metaverse Successfully Averted a Lehman Brothers-Like Terra Crash in May, But Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs) Are Not So Luck said the report.
on July 29th report According to decentralized application data aggregator DappRadar, Terra’s collapse in May was similar in scale to the 2008 subprime mortgage crisis, with decentralized finance (DeFi), non-fungible tokens (NFT), and the Three Arrows It has spawned companies such as Capital (3AC), Celsius and Voyager. To bear the brunt of Terra’s destruction.
It is becoming clear that Terras bankruptcy was a Lehman Brothers-like event that sent shockwaves across the cryptocurrency industry and left aftershocks affecting us for months.
However, Dappradar noted that blockchain games and Metaverse projects have shown minimal shortcomings or even positive signs of growth over the same period.
This report compares various metrics to show how the Terra collapse (mid-Q2) impacted the performance of different sectors of cryptocurrencies during the first two quarters of the year. increase.
One of the key metrics to look at in this report is the number of transactions (the total number of completed transactions), which basically indicates user engagement. DeFi and NFTs recorded the biggest declines at 14.8% and 12.2% respectively, while blockchain games and NFT-related metaverse projects posted increases of 9.51% and 27%, respectively, bolstering the ensuing bear market. could be avoided.”
The report also found that the average amount of activity from NFT’s unique active wallets (UAW) dropped significantly by 24% in Q2, while blockchain games saw a drop of just 7%, indicating that users continue to invest in gaming dApps. It adds that it suggests that it is interacting with Roughly the same percentage as before the Terra incident.
Metaverse-related NFT project volume has been dubbed a ‘beacon of hope’ as it increased 97% from Q2, despite a 32.66% decline for the overall NFT sector in Q2.
with another DappRadar report From July, the company suggested that the non-speculative aspect of the game itself may have allowed blockchain gaming to hold up better than the rest of the crypto sector in the last quarter.
This bullish activity shows that engagement with virtual worlds is not based on end-user profitability. It shows that it is inherently fun for users, the report read.
DappRadar also noted continued institutional investment in both blockchain gaming and the metaverse, highlighting that many top companies see strong economic growth potential in both sectors.
Related: Metaverse visionary Neal Stephenson is building a blockchain that will improve creators
The report goes on to highlight that investments in blockchain games and Metaverse projects remained consistent in Q2 despite the Terra carnage.
Despite the financial blow and declining confidence in the industry, the number of investments in blockchain games and metaverse projects remained steady quarter to quarter, with $2.5 billion invested in both Q1 and Q2. Investors remain bullish as
