Blockchain Gaming and Metaverse managed to “avoid” the collapse of Terra’s “Lehman Brothers style” in May, although decentralized finance (DeFi) and non-fungible tokens (NFT) have not been lucky so far, according to a report.
In a Friday report by decentralized applications data aggregator (DApp) DappRadar, Terra’s collapse in May was of a similar magnitude to the 2008 subprime mortgage crisis, causing DeFi, NFT and companies like Three Arrows to weaken. Capital (3AC), Celsius and Voyager. face the brunt of Earth’s destruction:
It is becoming clear that the Terra debacle has become a Lehman Brothers-like event that has sent shockwaves across the cryptocurrency industry and aftershocks that will hit us for many months to come.
However, DappRadar noted that gaming and blockchain metaverse projects had minimal drawbacks or even positive signs of growth over the same period.
withstand the storm
The report compares several metrics to show how the collapse of Terra (in the middle of the second quarter) affected the performance of various cryptocurrency sectors between the first two quarters of this year.
A key metric examined by the report is the number of transactions, or the total number of completed transactions, which basically shows user engagement. DeFi and NFT recorded the largest drops with 14.8% and 12.2% each, while blockchain games and NFT-related metaverse projects “managed to avoid the resulting bear market” by recording increases of 9.51% and of 27% each.
The report also added that while the average amount of activity from unique active portfolios (UAWs) in NFTs dropped 24% in the second quarter, blockchain games fell by just 7%, suggesting that users continue to interact. with the game DApps “at about the same speed as before the Earth crash.
Transaction volume for metaverse-related NFT projects was also described as a “ray of hope”, with volumes up 97% from the second quarter, despite an overall decline of 32.66% in the NFT sector in the second quarter.
In a separate July DappRadar report, the company suggested that blockchain games may have held up better than other cryptocurrency sectors last quarter due to the non-speculative aspects of the games themselves.
“This bullish activity indicates that engagement with virtual worlds is not based on their profitability to the end user. This shows that virtual worlds are inherently fun for the end user as communities remain active despite the devaluation of native tokens.” , the report states.
DappRadar also said that there are sustained institutional investments in blockchain games and the Metaverse, noting that many large companies see the potential for strong economic growth in both sectors in the future.
The report went on to highlight that the amount of investment in gaming and blockchain metaverse projects remained constant during the second quarter despite the carnage on Earth:
Despite a financial blow and shaken confidence in the industry, investors remain optimistic as the number of investments in blockchain games and metaverse projects remained constant quarter-over-quarter at $ 2.5 billion invested in the first and second quarters.