The DappRadar industry report for February 2022 stated that while the market is on the decline, the activity in the blockchain and DeFi sectors remains stable. In the same breath, it seems that the NFT market has entered a consolidation phase.
Industry is growing silently
DappRadar reports that governments and financial institutions are becoming increasingly interested in Web 3 technologies. Blockchains are being implemented in various ways in today’s society.
According to the data, DApps are now used 385% more often than in February 2021. Also, they attract 2.35 million users each day with active wallets (UAWs). Although DApps declined by 5% in January, they are still at a constant level, considering that crypto prices have been consistently declining since November.
Russo-Ukrainian tensions were also a cause for concern, but after a short break, cryptocurrencies recovered. Bitcoin currently trades at over $39,000, making it more valuable than the collapsing ruble.
Adoption of NFT continues to grow despite a downward trend in volume. However, data on the blockchain suggests that the number of distinct traders has increased 8% month to month and NFT sales have increased by 2%, respectively. This indicates a growing user base, while non-removable token sales have decreased by 28%.
Since the November market peak, the most significant changes have taken place in the adoption of DeFi. Trust and investment banks, including NBY Mellon, JP Morgan, and Mitsubishi UFG, have indicated an interest in both cryptocurrencies and DeFi applications.
The DappRadar noted that the freezing of Canadian bank accounts in February influenced the trend toward a more “decentralized ecosystem.” Their report states:
DeFi is considered distant compared to gaming and NFT. However, macroeconomic implications and a mature DeFi ecosystem are rapidly changing the narrative.