The demise of the Terra blockchain has affected nearly every aspect of the crypto space. The event sparked a lot of discussion among industry experts and government watchdogs. Many people have lost not only their savings but also their hopes for the crypto space.
A recent report by DappRadar, a platform for decentralized applications, compared the Terra collapse to the 2008 subprime mortgage crisis. The housing bubble of 2008 adversely affected all aspects of the global economy. So will the 2022 cryptocurrency crash, according to DappRadar. They even went as far as comparing it to Lehman Brothers.
What has changed since the fall of Terra?
Overall blockchain activity remains more or less unchanged, according to the report. The platform reports a 1% decrease in overall transaction volume since the first quarter of 2022. However, DeFi-related transactions have fallen by almost 15% since Terra’s fall in May 2022.
On the other hand, NFT (Non-Fungible Token) transactions decreased by 12.2% last quarter. NFT trading volume fell 67% in May, while sales fell 21%. Additionally, the number of unique active wallets interacting with NFTs has decreased by 24% since the Terra collapse in May. Still, activity is still up 48% compared to Q2 2021.
Nevertheless, blockchain games seem to be bucking the trend. DappRadar reports that blockchain-based gaming transactions increased by 9.51% in Q2 2022. Despite the Terra debacle, his investments in games and the metaverse remained steady at $2.5 billion in the first and second quarters of 2022, according to reports. The number of active wallets is decreasing. It was up 7% last quarter. This shows that the number of people playing blockchain games remained fairly constant before and after the Terra incident.
So why hasn’t the number of blockchain games declined since the Terra debacle became speculative? Users interacting with such projects may not be participating for profit. At least for now, gaming leans more towards a leisure activity than a source of income. And this aspect could be the reason why the metric hasn’t changed.
Another DappRadar report from July 12 also confirms the findings of the new report. Blockchain-based games were found to be the least affected by the post-Terra crash bear market, according to a report. According to the report, sales were up 19% year-over-year.
Blockchain-based gaming as an industry is expected to grow. The gaming industry is he one of the fastest growing areas in the world of technology. So it’s no surprise that blockchain-based games will soon take center stage.