The DappRadar report shows that blockchain games are resisting the bear market the most
The cryptocurrency industry has been dealing with a strong bear market since November 2021. It was the start of another crypto winter that has been around for about nine months now, and during this time researchers have been able to observe the interesting behavior of different sectors of the crypto industry.
For example, it was concluded that the bear market is beneficial in some respects, as it weeds out unnecessary and weak projects while allowing legitimate projects to stand out. Of course, at the same time it also negatively affects investors and their portfolios, but only for a time. Ultimately, long-term investors will recover from losses and even make money if their chosen projects manage to survive the bearish wave.
During this crypto winter, it seems that the projects that ended up being the best at resisting the negative effects of the bear market are blockchain games and metaverse projects.
Resist the bears
The conclusion that games and metaverses have handled the bear market best was mentioned in a recent report published by DappRadar. According to the report, blockchain games not only managed to bypass the subsequent bear market, but even managed to increase their numbers by 9.51% in Q2 2022 alone. Over 2.5 billion dollars were invested in these sectors during the 1st and 2nd quarter of this year.
The industry has struggled the most in June, with even the blockchain gaming sector only seeing around $500 million in investment. But still, the sector is extremely promising, and DappRadar’s CEO, Skirmantas Januskas, expressed the company’s opinion that blockchain gaming will be the key sector in the coming years.
In fact, the sector is expected to bring at least 100 million new users to crypto/blockchain as it connects DeFi and NFTs. With a combination of games, NFTs and DeFi, something new and exciting is expected to emerge.
How did the bear market affect the crypto industry?
So far, the bearish market has caused all cryptocurrencies to experience sharp price drops. Not only that, but there was a 7% decrease in wallet activity compared to Q1 of this year. The amount of activity with dApps has remained relatively unchanged, but the amount of gaming-related NFT transactions has fallen by 51% since the first quarter. However, sales volume fell by 82%.
Despite this, the total number of transactions related to the gaming sector managed to stay above 24 million per day, which is much higher than any other sector, including gambling, DeFi, marketplaces and even exchanges.
Solana has been the most successful in attracting new game and NFT developers, likely thanks to low transaction costs and high processing speeds. In fact, despite the multiple network outages it experienced, blockchain activity skyrocketed by 311%. It is assumed that the project’s gaming environment is responsible for this increase in activity.
Significant traction was also noticed with a project called WAX, with blockchain activity increasing by around 6% since May 2022.
To learn more visit our investing in DappRadar guide.
