Three months later, the cryptocurrency terrain looks different as the industry advances, still bearing the scars of Earth’s implosion.
In May, Terra collapsed, wiping out nearly $ 50 billion of investor funds. The domino effect of the disaster spread as the contagion spread to large companies exposed to Earth, such as Three Arrows Capital, BlockFi and Celsius.
For broader markets, the result was a bleak crypto winter, with market cap falling below $ 1 billion and a series of cryptocurrency exchanges that stopped withdrawals.
DappRadar’s research found that DeFi took the brunt of the collapse, posting a steady decline month after month. The data showed that Total Blocked Value (TVL) dropped 68% on average across all blockchains, and hack reports exacerbated the declining numbers.
The regulations come after the collapse of the Earth
Experts have warned of an impending wave of regulations for the cryptocurrency industry in both the US and European markets. In both jurisdictions, several bills on stablecoins are at stake to prevent a repeat of events in May.
The Financial Stability Board (FSB) is pushing for a concerted global effort and will present a comprehensive regulation proposal in October to the G20 countries.
Agencies are also stepping up their efforts to curb the virtual currency industry, with the Securities and Exchanges Commission (SEC) leading the way by doubling the number of employees working in cryptocurrency-related fields.
The activity of developers in the blockchain has also taken a hard hit. DappRadar notes that the number of new decentralized applications (dApps) released across all channels decreased by 35% in the months following the Earth’s collapse.
The Blockchain game is the biggest winner
Blockchain games appear to be crash-proof, with consumer activity levels rising. Gaming Non-Fungible Token Transactions (NFTs) challenged market trends with a 19% year-over-year increase thanks to capital inflows from institutional investors.
Solana and WAX were the blockchains that recorded significant DappRadar gaming activity notes. Splinterland, Farmers World, and Alien Worlds all came out on top after posting minimal losses in their gaming business.
In terms of demographics, the report places the United States as the largest audience for digital assets, with India and Russia in second and third place respectively.
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