Dappradar has just published its February 2022 Dapp Industry Report. It found that there was still activity in the DeFi and blockchain space despite the bearish market conditions. The NFT market seems to be entering a consolidation phase.
A quietly growing industry
DappRadar reports that governments and financial institutions are increasingly interested in web 3 technology. They are discovering more uses for blockchain and different ways to integrate it into our society.
Specifically, dApp usage has increased 385% since February 2021. It attracts 2.35 million unique active wallets per day. Although usage is technically still down 5% since January, it remains remarkably consistent given that crypto prices continue to fall consistently since November. Bitcoin dropped to $34k last week.
Additional concern was raised by Russia’s invasion and occupation of Ukraine on February 24, 2019. After a short drawback, however, crypto seems to have been thriving throughout the conflict. Bitcoin now trades above $43k making it more valuable that the crashing Russian ruble.
NFTs are still being adopted despite a decline in trading volume. According to on-chain data, unique traders and NFT sales have increased by 8% & 2% each month. This shows a growing user base even though NFT sales have declined by 28% to $4 billion, compared to the previous month.
The most notable changes in DeFi adoption trends since November’s peak have been seen. Investment and custodial banks, including JP Morgan, NBY Mellon and Mitsubishi UFG, have all expressed interest in DeFi applications.
Dappradar named Canada’s February freeze of bank accounts as a marketing tool for a more “decentralized” ecosystem.
The report stated that while mass adoption of DeFi may seem distant compared to NFTs and games, these types of macroeconomic implications along with a mature DeFi ecosystem can quickly change the narrative.
Are You Moving From Ethereum?
This report also noted the rise of DeFi, NFTs and Web 3 in ecosystems other than Ethereum. While Ethereum is still the dominant domain in these areas, other chains seem to “attract more people into their networks.” Binance Smart Chain, for example, sees 608,000 UAW connected daily to its network by Binance Smart Chain. This is impressive, but it’s still 17% less than January.
Some of the most important and highly traded NFT collections can be traded outside Ethereum. These include Ronin’s Axie Infinity collection and NFTs of Crabada, which are a way to earn dapps on Avalanche. NFT volume increased 25% MoM in Avalanche’s chain.
Marla Brooks – Financial Analysis
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