Report: NFT, Crypto Games Outperform DeFi amid Market Selloffs in Mai: NFT & Crypto Games DappRadar, an analysis and discovery platform for DApps, published a detailed report that examined the state the crypto market in May. It focused on three areas: DeFi activities, NFT activities and crypto games. The report stated that Terra’s debacle didn’t destroy the DeFi ecosystems. NFT trading volume decreased only 6% in April when measured in token prices. Interest in blockchain games also remained strong amid crypto selloffs.
DeFi is not dead
According to DappRadar’s report, shared with CryptoPotato, DeFi was the worst-hit sector in May. The industry had a total of $117 million in Total Locked Value (TLV) — 45% below what it had achieved as recorded by the end of April. Among all the DeFi protocols, Tron noticeably was the only network that recorded a positive number for TLV — an increase of 47% MoM — while the rest of the major projects all experienced declines. Despite the seeming weakness exacerbated by Terra’s historic collapse, the report stated that the sector is “far from dead” because it has achieved an 11% YoY growth in terms of TLV. Uniswap, the dominant decentralized exchange, also reached $1 trillion in transaction volume within the same month.
NFT is Consolidating
NFT transaction volume dropped 20% MoM — when measured in USD — but the number would have come down to 6% if viewed in the native tokens of the NFTs. It shows that the bear market did not fundamentally shake out people’s convictions in the sector, the report found. It’s worth noting that Solana NFTs generated $335 Million across all marketplaces. This is an 13% increase over April and defying the market conditions. DDespite the plummeting floor prices for blue-chipped projects such as BAYC or MAYC, momentum in the NFT space has not been lost. New protocols continue to draw volume from investors. In terms of marketplaces, OpenSea’s dominance declined along with the rising competition derived from Solana-based Magic Eden, Wax’s Atomic Hub, and more. Coinbase Marketplace was viewed as a “failed experiment” since it only generated $2.5M since launching on April.20th this year. Further, the report noted that the sector’s rapid growth has led to a consolidation stage. It reached its peak in January and is now in a phase of consolidation. The sector’s engagement with non-crypto native populations has also changed the crypto landscape. The exposure that the blockchain industry receives from NFTs, puts today’s crypto market in an entirely different position from the conditions seen in the 2018 crypto winter. In those days, the level of interest and enthusiasm for the industry was alarmingly low. While mainstream media continues to call for the NFT bubble’s burst, market conditions in NFT space differ. — reads the paper.
Blockchain Games are Resistant
Comparable to DeFi, or even NFTs The least impact on blockchain games was April’s 5% drop in the number of transactions. Meanwhile, the report quoted a16z’s $4.5 billion commitment as a boost to the Metaverse and related blockchain games. This document identified the most recent move-to-earn trend — embedding a gamification element to physical activities — as a new incentive that onboards new players and sustains the sector’s growth.