Despite the ongoing crypto market slump, blockchain data analytics site, DappRadar has reported a relatively stable global blockchain usage. According to a report released today, titled “January 2022 Dapp Industry Report”, the growth is attributable to a rise in NFT activities and blockchain gaming. Despite the crypto market losing more than half of its value over the past two months, blockchain usage only declined by a marginal 2%.
NFT and Gaming register growth, as DeFi Slumps
The DappRadar report indicates that NFTs registered significant growth in January, with a record-breaking $16 billion worth of transactions. This market segment had a new kid on the block, namely LookRare, which was the leading marketplace in terms of value transacted. In total, LookRare recorded about $10.7 billion in NFT transactions, with OpenSea coming in a farther second at $4.7 billion. Nonetheless, OpenSea had the highest number of users, with over 500,000 trades.
In comparison, LookRare registered 35,000 trades. The disparity between LookRare’s high sales value and low number of transactions is attributed to the platform’s use of incentives. LookRare employed the LOOKs token reward program to attract users, resulting in inorganic growth of sales figures.
Meanwhile, gaming was the leading utility on blockchains. The segment accounted for 52% of blockchain space usage. That was attributed to the high retention of gamers connected to dAPPs. Furthermore, four of the top 5 blockchain games, all of which operate on P2E model, recorded growth in user numbers.
Of the key market segments, DeFi took a significant hit during the period under review. The segment’s Total Value Locked went down from almost $220 billion in December to $178. Nonetheless, a comparative analysis shows that DeFi outperformed the underlying cryptocurrencies, considering that the sector lost “only” 23%, compared to cryptos’ over 50%.
What does it mean?
Despite the ongoing cryptocurrency market slump, the relative stability in blockchain usage depicts a mature market. The fact that segments such as gaming and NFT have remained strong, shows that the market is benefitting from diverse use cases. Therefore, it will likely rebound stronger from the two month-long tumult.
Modesta Masoit, Head of Finance and Research at DappRadar, stated, “The past couple of months have been rather bleak for anyone holding crypto, but the blockchain industry’s performance is a bright light at the end of the tunnel.”
DappRadar is a leading blockchain data tracking and analytics site, established in 2018 and located in Lithuania. It integrates more than 9,000 decentralized applications. It has a number of useful market analysis tools. These tools make it easier for users to track the activities and performances of Dapps across NFT, DeFi, metaverse and other segments. It boats of over 1 million monthly active monthly users and boasts of being the world’s Dapp store. DappRadar has a native token, known as RADAR, built on the Ethereum blockchain.