‘Blockchain Space Relatively Stable,’ Cites Dapp Radar in Report

Today, decentralized applications store DappRadar issued its Q1 2022 Dapp Industry Report, citing relative stability for the blockchain space.

The report highlights several interesting industry trends. It says that despite a bearish crypto market and at least $1.19 billion taken in hacks and exploits in the first three months of 2022, an average of 2.4 million unique active wallets interacted with dapps daily. It also claims that blockchain usage remained stable, losing only 5.8% against Q4, 2021 but gaining 396% from Q1, 2021.

Ronin and the Wormhole Solana bridge were the two worst affected by security issues regarding token bridges, asserts the report. It goes on to say that gaming dapps were the pace-setting aspect of the industry, accounting for more than 50.5% of daily active users in Q1 and representing a 5.8% decrease from Q4 2021. Additionally, NFTs were reported to have generated $12 billion in trades in Q1.

Modesta Masoit, Head of Finance and Research at DappRadar, stated that the industry was under significant stress but was handling things well and showing the true potential of cryptocurrencies and dapps.

Leading gaming projects solidified their positions while DeFi embraced gamification to appeal to a broader audience. NFT collectors have become savvier and seek actual utility as projects look to deliver on promises made and new projects keep emerging. This period feels reminiscent of the post-2017 ICO phase. Now it’s time to see who’s in for the long haul.

The report also claims that DeFi saw a downward trend. It cites the fact that, at the end of March, the DeFi industry’s TVL was estimated at $214 billion, 8.4% lower than December 2021. Even though TVL and usage metrics are decreasing from the previous quarter, the industry appears to be consolidating and evolving to broaden its appeal.

The study attributes some of the negative trends to the sanctions imposed on Russia.

The Q1 2022 Dapp Industry Report is the latest edition of DappRadar’s regular industry reports. Founded in 2018, DappRadar is a global decentralized applications (dapps) store.