Regulatory heat on the crypto industry intensified in the previous quarter. Facing the brunt are several sectors, including the DeFi and NFT, that demonstrated a troubling state. The blockchain gaming sector, on the other hand, appears to have remained unshaken in the face of the turmoil.
According to a DappRadar report, the gaming category continues to lead as the most dominant, commanding 37% in the whole decentralized applications (dApp) market. The figure is still down from a 45% market dominance in the previous quarter.
- Data also revealed an uptick of nearly 8% in daily Unique Active Wallets (dUAW) engaging with dapps on-chain from Q1, which may be interpreted as an encouraging sign of market recovery.
- DappRadar noted,
“Despite the regulatory turbulence that pervaded the landscape, the digital asset market still thrived, as reflected by the growth of active engagement.”
- A mild resurgence came in the form of meme coin hype and the L2 airdrops hunters, as DeFi’s dominance soared from 23% to 32%. However, DeFi protocols witnessed their TVL plummet by more than 7% from the previous quarter reaching $77.6 billion.
- The report outlined that the downturn was unexpected and contrasts starkly with the anticipated growth trajectory of the DeFi landscape.
- While Ethereum continued to remain in the lead with a marginal 2% decline from the previous quarter, the same cannot be said for the other two leading blockchains – BNB and Polygon.
- Following the SEC lawsuit in early June, BNB suffered a 19% drop in its TVL, marking the most severe contraction amongst all considered blockchains. Polygon a;sp witnessed an 8% TVL reduction as a direct impact of the regulator’s attack.
- The NFT market was worst hit as its trading volume fell by 38% to land at $2.9 billion in Q2. However, the dip doesn’t necessarily indicate a waning of market interest or activity, the report specified.