Published on: 10/10/2022
GameFi, Crypto markets recovering, DappRadar report says
Decentralized application data tracker DappRadar recently published a report saying that the crypto market was recovering and the GameFi sector was growing. The company described Q3 of this year as a time of “consolidation” after a major decline a few months ago.
The decline was marked by the collapse of Terra, one of the largest DeFi ecosystems, which caused an $83 billion financial slump for the industry, as noted by Bloomberg. This collapse left widespread effects on various cryptocurrencies, including Bitcoin and Ether, and the general mindset of investors. The chief investment officer of Arca, Jeff Dorman, claimed that people were wary of investing, adding that “those that are expressing bullish views are being bullied.”
However, the GameFi sector escaped relatively unscathed, with its user base continuing to grow. In September, the number of active wallets on various GameFi applications indicated an upward trend compared to the previous month. DappRadar noted that many had thought GameFi projects would lose their users if the games were financially disadvantageous for their users, but the data proved this to be wrong.
Two of the most notable projects were The Sandbox, which has over four million registered users with wallets connected, and Immutable X. The Sandbox continues to secure partnerships with big brands such as Atari and The Walking Dead, while Immutable X is the only blockchain that reported increased trading volume. This is due to its partnerships with various GameFi projects such as Undead Blocks and Gods Unchained.
The best-performing blockchain gaming platform was Gameta, with over 1.9 million registered users. The game had started on the Solana blockchain before moving to the BNB Chain, where it became BNB Chain’s Most Valuable Builder (MVB). What followed was its alpha test campaign in August.
Changes in the overall crypto market and beyond
Bitcoin and Ethereum’s prices remained within the same price range as in June, indicating the market has stabilized. Despite this stability, investors still consider cryptocurrency similar to risky stocks, as can be seen by the correlation between Bitcoin and S&P 500 increasing.
Meanwhile, Ethereum-based crypto projects were impacted by the Merge, Ethereum’s switch from Proof-of-Work to Proof-of-Stake. This change came after a six-year development and resulted in a short spike of Layer-2 pre-merge activity.
Q3 also saw a 12 percent increase in the number of Unique Active Wallets (UAW) connected to a blockchain dapp compared to Q2 at 1.8 million daily connections.
Other than the financial state of crypto, DappRadar also said that blockchain technology was undergoing significant changes in overall adoption, technological advances and regulations. It noted that large companies such as Disney, Ticketmaster, MasterCard, and Starbucks had announced NFT integrations as part of their attempts to enter the Web3 space. July also saw the London-based electronics company Nothing partner with the Ethereum-based platform Polygon to create smartphones made specifically for Web3.
Regarding regulations, the European Union reached a provisional agreement for what it calls the markets in crypto-assets (MiCA) proposal, which was made to protect investors, increase financial stability and enable innovation within the industry.