DappRadar, a blockchain data analytics firm and dApp store, has released its annual report for the 2022 blockchain, dapp, and cryptocurrency industries. From the failure of major crypto companies to high-profile instances of fraud, hacking, and heists, the research says that the industry has shown remarkable resiliency. In addition, several technological and technical advancements were made in the sector, which may have helped to reassure investors.
The year-long winter market
According to the Yearly Report 2022, the crypto industry was seriously threatened by difficulties stemming from bad events, the most significant of which was a sustained price drop for cryptocurrencies. Not only that, but the year also saw a record low for the Total Value Locked in DeFi of $55 billion, a decrease of 73.97% year over year. However, L2 scaling platforms fared better, with Arbitrum’s TVL reducing by just 12.07% to $1.74 billion. The TVL of Optimism, on the other hand, grew by a whopping 127.6% to $669 million.
Hacks, scandals and exploits
The DappRadar report details the high prevalence of hack attacks and exploits that have cost businesses and investors billions of dollars. DappRadar reports 312 crypto attacks in 2022, which resulted in almost $48 billion in stolen cryptocurrency. Indirect losses from the Terra Luna affair alone exceeded $40 billion, making it the largest. However, the majority of hacks, $44.71 billion worth, were directed at centralized exchanges.
Industry in consolidation?
Compared to the 1.58 million dUAW at the end of 2021, DappRadar indicates that the dapp industry as a whole has seen a 50% increase in daily unique active wallets. The blockchain industry has been able to solidify thanks to the widespread acceptance of the technology among consumers and businesses and the growing interest from investors. That the sector can bounce back and develop to this point is a testament to its stability and success. This year, however, the industry appears to have solidified its activities, and it has been declining steadily since the beginning of the year.
It’s not all gloomy for NFTs after all
Over 10.6 million individuals engaged in NFT trading, an increase of 876.89% year over year. There was also an increase in total sales, which amounted to a 10.16% increase to $68.35 million. Also, d Despite the drop in token prices, trading volume in the NFT sector increased by 0.41% compared to the same period last year.
Some new projects in the NFT sector have also shown promising growth. X2Y2 stands out as the most successful, with a trading volume of over $1.5 billion for the year, placing it in the top 10 of its industry’s marketplaces. Blur has also done very well, with a total of $205 million in trade volume, good enough to get into the top 10 positions.
While the crypto, DeFi, and NFT sectors experienced substantial declines, blockchain games showed greater resistance to the bear market conditions. DappRadar estimates that in 2022, 49% of all dapp usage have occurred inside the gaming sector. By December, the industry as a whole had processed 7.4 billion transactions, with an average of 1.15 million dUAW.
New tech and institutional adoption
According to DappRadar, the blockchain industry has been significantly impacted by new technology in the past year. Zero Knowledge (ZK) proofs, for instance, have shown their utility outside of blockchains. In addition, committed developers kept going despite the market downturn, resulting in the recent emergence of a number of high-quality projects.
The Ethereum Merge in September, during which the network switched from proof-of-work (PoW) to proof-of-stake (PoS), was, nonetheless, the most significant event of the year (PoS). Ethereum’s energy consumption dropped by 99.9 percent after the switch.
There was also a notable rise in institutional interest in blockchain technology, despite the frigid market conditions. There is plenty to look forward to in terms of institutional adoption of crypto and blockchain technology in the new year, as evidenced by the fact that major institutions like Fidelity, Nike, and Adidas have developed products based on blockchain technology.
Regulators have upped their ante in 2022
Mainstream blockchain regulations in 2022 emphasized making these kinds of networks more transparent and accountable. It includes efforts to set clear regulations and norms for the use of blockchain technology and measures to prevent money laundering, fraud, and other criminal acts.
For instance, in the United States, the Securities and Exchange Commission (SEC) issued rules for implementing blockchain technology in the financial markets. Moreover, the first measure to regulate cryptocurrencies was submitted to the House of Representatives with the goal of creating a uniform regulatory environment for all forms of digital currency. Meanwhile, in Europe, the Markets in Crypto-Assets (MiCA) regulation was introduced to create a unified legal structure for crypto assets throughout the European Union.
In conclusion, the most important thing to learn from the report is that blockchain technology use kept rising through 2022, which implies that the industry’s future is bright despite the obstacles it currently faces.