The cryptocurrency market is facing one of its most brutal crypto winters, marked by a sustained drop in digital asset prices and the failure of major crypto companies, as well as high-profile cases of hacks and heists.
Nonetheless, a recent report from blockchain data and analytics firm DappRadar suggests that the industry may not be in such a gloomy state, as it has shown remarkable resilience and maturity amid the crypto winter.
According to DappRadar’s 2022 Industry Report, decentralized applications (dApps) usage has skyrocketed despite the bearish market conditions.
The dApp industry saw a 50% year-on-year increase in its daily unique active wallets (dUAW), rising from 1.58 million in 2021 to 2.37 million in 2022. This growth can be attributed to increased acceptance among consumers and businesses, as well as increased investor interest.
Blockchain gaming and NFTs lead dApp market growth
Blockchain gaming projects, specifically the GameFi sector, played a significant role in the dApp industry this year. GameFi accounted for 49% of all dApp activity, with an average of 1.15 million daily dUAW and 7.4 billion transactions.
The non-fungible token (NFT) market also contributed to the dApp industry’s growth, with a 33% increase in daily dUAW and an 876% jump in unique NFT traders.
However, while the number of unique NFT traders rose significantly, the trading volume only increased by 0.41% compared to the previous year. NFT sales also boomed, rising 10.6% to $68.35 million, although another report suggested that nearly 60% of NFT trading volume this year was fake.
DeFi shows resilience despite 73% drop in TVL
The decentralized finance (DeFi) sector faced challenges in 2022, losing more than 73% of its total value locked. Despite this, the market saw a 2% increase in daily dUAW, reaching 652,970.
This may not seem significant, but DappRadar notes that it is an impressive achievement for the DeFi sector after the collapse of Terra Luna, which was the second-largest DeFi ecosystem at the time.
The report concludes by acknowledging that the bear market has created an opportunity for the industry to learn from mistakes and focus on building sustainable projects while preparing for the next bull season. It also highlights the industry’s resilience and maturity as it continues to grow despite challenging market conditions.