Blockchain Games Retains Activity Trend Despite Market Troubles: Report
- The report noted that the blockchain games registered the lowest per month investment with only $500 million when compared to its performance prior to Terra’s collapse.
Leading decentralized application (Dapp) store DappRadar says the blockchain gaming sector is coping better than other sectors as the troubles induced by the recent market crash continue to persist.
The market crash has seen the portfolios of many investors crumble beyond expectations. Crypto firms, especially crypto lenders are also struggling with liquidity issues. However, blockchain games and metaverse projects seem to be the most notable survivors according to research from DappRadar.
Blockchain Games Survives Market Turmoil
DappRadar revealed via its blog post, that the blockchain gaming niche appears to be pretty resistant to the distressing market turmoil. Noting that blockchain games and metaverse projects have sidestepped the ensuing bear market.
The abstruse crash of Terra has tremendously affected the overall crypto market, causing the market value to plunge significantly. Major users within the ecosystem are seen struggling heavily with distressing market behavior.
The report noted that the blockchain games registered the lowest per month investment with only $500 million when compared to its performance prior to Terra’s collapse. Nonetheless, the blockchain industry has been observed to be the most notable survivor of the crash. According to the report, the overall blockchain activity remains relatively on par, with a 1 percent drop in overall transaction count since the first quarter of the year.
The weight of the market crash on the gaming space measures way lesser when compared to its effect on other niches in the industry. The analysis further unveiled that the overall average number of its Unique Active Wallets (UAWs) activity has only declined by 7 percent since the beginning of the year.
Worth noting, the industry has been able to sustain the interest of new and existing users amid the bearish moments. According to the report, people have continued to operate with blockchain applications at a more or less the same rate as before the Terra implosion. Moreso, the analysis revealed that the industry has recorded up to $2.5 billion worth of investment in the first and second quarters of the year.
Speaking on the slight impact of the bear market on the blockchain gaming industry, the CEO of DappRadar, Skirmantas Januskas said;
“We think that blockchain gaming is going to be key in the next two or three years and is going to bring at least 100 million new users into crypto, for one simple reason, they connect NFTs and DeFi. With all three combined, blockchain gaming, NFTs and DeFi you will see something genuinely new and exciting.”
The distressing market has seen crypto firms being acquired by other firms. A number of crypto firms have also been compelled to halt their operations in a bid to survive the market-induced financial woes. Meanwhile, the blockchain gaming space on the other hand is still able to maintain daily transactions of over 24 million without much struggle.