Blockchain games and NFT-related Metaverse projects “managed to
sidestep the ensuing bear market” by posting transaction count increases
of 9.5% and 27% respectively in Q2.
Blockchain gaming and the Metaverse have managed to “sidestep” the
“Lehman brothers-like” collapse of Terra in May — though decentralized
finance (DeFi) and nonfungible tokens (NFTs) haven’t been so lucky, a
report says.
In a July 29 report
from decentralized application data aggregator DappRadar, the collapse
of Terra in May was similar in scale to the 2008 subprime mortgage
crisis — causing decentralized finance (DeFi), nonfungible tokens (NFTs)
and firms such as Three Arrows Capital (3AC), Celsius and Voyager to cop the brunt of Terra’s destruction.
“It
is becoming clear that the Terra debacle has become a Lehman
brothers-like event that has sent shockwaves across the entire breadth
of the crypto industry and aftershocks that will affect us for many
months.”
However, Dappradar noted that blockchain gaming
and Metaverse projects showed either minimal drawbacks or even positive
signs of growth in the same period.
Weathering the storm
The
report compares different metrics to show how the Terra collapse
(during mid-Q2) impacted the performance of various sectors in crypto
between the first two quarters of this year.
One key metric the
report looks at is transaction count (the total number of completed
transactions), which essentially shows user engagement. DeFi and NFTs
saw the biggest drops with 14.8% and 12.2% apiece, while blockchain
games and NFT-related Metaverse projects “managed to sidestep the
ensuing bear market” by posting increases of 9.51% and 27% each.
The
report also added that while the average amount of activity from unique
active wallets (UAWs) in NFTs dropped by a hefty 24% in Q2, blockchain
gaming saw a drop of just 7%, suggesting that users continue to interact
with gaming dApps “at a more or less the same rate as before the Terra
incident.”
The trading volume for Metaverse-related NFT projects
was also described as a “beacon of hope,” as volumes increased by a
whopping 97% since in Q2, despite the overall NFT sector posting a
32.66% drop in Q2.
In a separate DappRadar report
from July, the firm suggested that the blockchain gaming may have been
able to hold up better than other crypto sectors last quarter due to the
non-speculative aspects of the games themselves.
“This bullish
activity indicates that engagement with the virtual worlds is not
predicated on their profitability to the end-user. It shows virtual
worlds are intrinsically fun to the end-user as the communities remain
active despite the devaluation of native tokens,” the report read.
DappRadar
also said there was sustained institutional investment in both
blockchain gaming and the Metaverse, highlighting that many top
companies see the potential for strong economic growth in both sectors moving forward.
Related: Metaverse visionary Neal Stephenson is building a blockchain to uplift creators
The
report went on to emphasize that amount of investment into blockchain
gaming and Metaverse projects remained consistent during Q2 despite the
Terra carnage:
“Despite a financial blow and undermined
trust in the industry, investors remain bullish as the number of
investments into blockchain games and metaverse projects has remained
constant quarter-over-quarter, with $2.5 billion invested in both Q1 and
Q2.”
source link : https://cointelegraph.com/news/gamefi-and-metaverse-least-affected-by-terra-debacle-report
