Binance Report: Major Shifts in the Crypto Market Recorded in the 1st Half of 2022
- According to the report by Binance, the GameFi and Asset management sectors garnered the most investment in the first half of the year.
- Additionally, crypto-related businesses and organizations collaborated with regulators to fathom a favorable business atmosphere.
- The report considered the stoppage of about 25 Fantom dApps projects as one of the critical events that unfolded in the first half of 2022.
Binance has released a comprehensive report covering incidents in the crypto space from the beginning of the year till the end of the first half. The research addressed notable issues like how the first part of 2022 has birthed a torrid period in the cryptocurrency industry. Indeed, it was a part of the year where the industry witnessed a mixed fortune. Coupled with price falls, cyber-attacks, and project collapse, the industry has witnessed notable innovation.
Close Look at Binance Report on Crypto Market in the 1st Half
The research addressed the crisis surrounding Fantom and as well the struggles of the Stablecoin market. The report highlighted that Ethereum’s dominance in DeFi is gradually diminishing, due to competition from other chains.
“The number of GameFi projects has continued to rise but there are signs of slowing growth. Deal flows are healthy and capital investments in GameFi exceeded over US$4.1B in first-half 2022,” the report noted.
Amidst the tribulations, the crypto industry recorded a sharp uptick in investments. According to the report by Binance, the GameFi and Asset management sectors garnered the most investment in the first half of the year.
Reportedly, the GameFi sector enjoyed an overflow of $4.1billion between January to June.
According to the report, crypto-related businesses and organizations collaborated with regulators to fathom a favorable business atmosphere.
The report noted that NFTs trading volume continued to surge, despite the ongoing market correction.
Worth noting, that the report considered the stoppage of about 25 Fantom dApps projects as one of the critical events that unfolded in the first half of 2022. As revealed, the development manifested following the departure of Anton Nell, a Foundation Senior Solutions Architect with Fantom, and his colleague, Andre Cronje. Their departure, according to the report, affected many of these projects.
Remember, the termination of these projects led to a massive decline in Fantom’s Total Value Locked (TVL). To date, the blockchain network is yet to recover from the crisis. Now, the firm is proposing the adoption of at least 10 percent of every generated transaction fee to foster existing projects in its ecosystem. According to reports, members of the community have started voting on the proposal.
According to the report, stablecoins entered into the new year, 2022 in a good shape, having enjoyed a consistent explosion in size since 2020. Regrettably, the crash of Terra’s UST in May ended the growth streak of stablecoins.
Moreover, the Terra crisis resulted in the loss of over $40 billion.
Consequently, investors to date still see all algorithmic stablecoins as high risk according to Binance. Consequently, Binance highlighted Tether as the highest-ranking centralized stablecoins. However, BUSD assets came up by over 22 percent in the first six months of 2022 whilst Tether endured a 15% fall within the same period.
The report, however, considered stablecoin as a laudable technique for linking payments and existing real-life projects with the crypto world. According to the report, such consideration tends to bring about more inclusiveness in payment activities and consequently enhance the embracement of web3
Since the inception of DeFi started on the Ethereum Blockchain, the chain still hosts a league of notable projects. According to the research, the dominance has plummeted to as low as 63% last month. Compared to the 97% it enjoyed at the start of 2021. This is due to the emergence of DeFi projects on other rival blockchains.
According to Binance, the monthly growth of GameFi projects has dipped to about 2.5 percent last month. The research indicates that the current market situation must have induced the decline. The rate of introducing new games has reduced due to the market implication.
On Cryptocurrency regulation, the report said that regulators across the globe still retain diverse opinions on the industry.
Worth noting, NFTs reportedly gathered sales volume of about $17.7 billion within the first six months of the year.
According to the research, the huge sales recorded in the NFT industry were occasioned by the increase in purchasers and transaction numbers. However, the trading volume recorded in the industry when analyzed in USD appears poor, the report affirms. This, as revealed, is due to the massive decline in the value of ETH.