Blockchain Games Least Affected by Market Turmoil: DappRadar Report
The bear market eliminates unnecessary frills and allows legitimate projects to stand out, but also cripples the wallets of investors large and small. Current market conditions are no different. But one vertical that market participants remain optimistic about is blockchain games and metaverse projects.
bear market winner
According to DappRadar’s report, blockchain games avoided the ensuing bear market and instead increased their numbers by 9.51% in the second quarter of the year. In fact, $2.5 billion was invested in the first and second quarters.
June will go down in history as the worst month for the industry, and even the blockchain gaming space felt the pain by registering the lowest monthly investment at just $500 million. Weighing in on the latest numbers, DappRadar CEO Skirmantas Januskas commented:
“We believe blockchain gaming is going to be key in the next two or three years and will bring at least 100 million new users into crypto, for one simple reason, they are connecting NFT and DeFi. With the three combined, blockchain gaming, NFTs and DeFi, you will see something really new and exciting.
The report highlighted a 7% drop in user wallet (UAW) activity since the first quarter. This essentially indicated that users were continuing to engage with decentralized blockchain applications at roughly the same rate as before the Terra implosion. Simultaneously, the amount of NFT transactions associated with games has fallen by 51% since the first quarter. Sales volume also fell by 82%.
Furthermore, the total number of transactions sent to smart contracts in the gaming sector is much higher than other categories such as DeFi, gambling, exchanges and marketplaces. Also throughout this month, in-game transactions managed to stay above 24 million per day.
Blockchain attractive for developers?
DappRadar revealed that Solana has attracted many NFTs and game developers. This trend can be attributed to low cost transactions and efficient processing speeds. Despite multiple network outages, blockchain activity increased by 311%.
Thanks to the “vibrant gaming community”, WAX also saw significant traction. Since May, its blockchain business has grown by 6%.
Demographically, Decentraland is most popular in North America, as well as countries like Austria, Germany, Iceland, Latvia, and Lichtenstein. Axie Infinity, on the other hand, has managed to appeal to users in Central and South American countries. Meanwhile, Sandbox has gained popularity in China. The fantasy football game, Sorare has gained a foothold in countries like France, Italy and Switzerland, as have many football fans across Europe.
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