Dappradar has just released its February 2022 Dapp Industry Report and found steady activity in the blockchain and DeFi space in the face of bearish market conditions. Meanwhile, the NFT market appears to have entered a consolidation phase.
A quietly growing industry
According to the DappRadar report, the interest of governments and financial institutions in web 3 technologies is increasing. They are finding more and more use cases for blockchain and various ways to integrate it into today’s society.
Specifically, dApp usage is up 385% since February 2021, attracting 2.35 million unique active wallets (UAWs) per day. Although usage is technically still down 5% since January, it remains remarkably stable given that cryptocurrency prices have been falling steadily since November. Last week, Bitcoin fell as low as $34k.
The Russian invasion of Ukraine on February 24 provided additional cause for concern. However, after a brief hiccup, cryptocurrencies seem to be thriving during the conflict. Bitcoin is now trading above $43k making it more valuable than the collapsing Russian ruble.
With regard to NFTs, adoption continues to rise despite trading volume trending down. On-chain data suggests that sole traders and NFT sales counts are up 8% and 2% respectively, month over month. This indicates a growing user base, even though NFT sales were down 28% to just $4 billion from the previous month.
Finally, DeFi adoption trends have seen some of the most significant changes since the November market peak. Custodial and investment banks including NBY Mellon, JP Morgan, and Mitsubishi UFG have all confirmed their interest in crypto and DeFi applications.
Dappradar even named Canada’s bank account freeze in February as promoting a “more decentralized ecosystem.”
“While the potential mass adoption of DeFi may seem like a long way off compared to gaming and NFTs, these kinds of macroeconomic implications, coupled with a more mature DeFi ecosystem, can quickly change the narrative,” the report states.
Get away from Ethereum?
The report also highlighted the growth of NFT, DeFi, and Web 3 ecosystems in addition to Ethereum. Although Ethereum continues to dominate these domains, alternative chains are apparently “attracting more users to their networks.” For example, Binance Smart Chain sees an average of 608,000 UAW connected to its network every day. While impressive, that number is still down 17% from January.
Additionally, some of the most valuable and best-traded collections of NFTs are traded off of Ethereum. These include Ronin’s Axie Infinity Collection and NFTs from Crabada, a game to earn dapps in Avalanche. The Avalanche chain saw NFT volume grow by 25% MoM.
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This post The Crypto Industry Kept Its Activity in February Despite Geopolitical Tension (Report)
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