DappRadar, a leading analytics platform for decentralized application (dapp), published a report on 5 July. The report stated that despite the harsh crypto winter that has plagued the year so far, the performance of the NFTs and Blockchain gaming ecosystems in the last quarter provided a silver lining. Additionally, this performance would keep investors and users optimistic about the future direction of the dapp industry.
Increased demand for NFTs between April and June
DappRadar, via its report, stated that despite the bloodbath that plagued the general cryptocurrency market and the collapse of the Terra ecosystem, the demand for NFTs between April and June registered an uptick. Additionally, DappRadar found that on a Year-on-Year (YoY) basis, the NFTs trading volume and sales count went up by 533% and 59%, respectively, in Q2 2022 as compared with the performance in Q2 2021.
Despite an uptick in sales in the last quarter, DappRadar also confirmed a decline in marketplaces’ volume within the period under review. Since May, marketplaces’ volume measured in USD has dropped by 70%. Measured in ETH, the volume has also dropped by 55% within the same period. To compensate for this decline, the NFTs market capitalization in terms of ETH has exceeded five million ETH. This represented an 8% drop since April but a 20% growth since May.
Source: DappRadar
Furthermore, Metaverse-based NFT collections, DappRadar found that with an overall growth of 96% in the last quarter, “the trading volume for ETH-based collections has increased by 101%, while Polygon collections have unfortunately declined by 26%.” On a YoY basis, ETH-based collections grew by 2093%, while Polygon grew by 456% in Q2 of 2022 when compared with performance in Q2 2021.
Solana takes lead
According to the report, DappRadar stated that in the last quarter, despite the crypto market pullback within the NFTs ecosystem, the Solana Chain led with a 21% uptick in trading volume. It was closely followed by Avalanche, which saw a 15% growth in its trading volume within the same period.
Within the same period, Ethereum, BSC, and Polygon chains suffered losses of 41%, 22%, and 59%, respectively.
What about blue-chip NFTs?
According to DappRadar, many blue-chip collections registered a decline in value in the last quarter. For example, the floor price of the Bored Ape Yacht Club (BAYC) decreased by 38% from 30 April. Within the same period, the Mutant Ape Yacht Club [MAYC] recorded a 57% decline in its floor price.
As per the report, this was caused by a “combination of macroeconomic trends related to the recession in the capital markets and the release of new projects like Goblin Town and Moonbirds.” By 18 and 19 June, most collections had recovered. DappRadar noted that “during this resurgence, Meebits floor price grew by 76%, Doodles and CryptoPunks recovered by 44% and 43%, and BAYC grew by 24%.”
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