A report on the DeFi space and Dapps
DappRadar is a well-known provider of app-store services in the crypto space, released reports on the performance of the decentralized app sector in February. The reports revealed that activity in the blockchain and DeFi space remained stable while all other markets were in bearish conditions. On top of that, the NFT market appears to be in a consolidation phase.
DappRadar reports also noted that governments and traditional financial institutions seem to be interested in blockchain and web3 industry technologies. Blockchain technology seems to bring various use cases and ways to solve real-life problems.
Decentralized application usage has grown 385% since February this year and has managed to attract an average of 2.35 million active wallets per day. However, usage in January was down 5%, but would still be considered stable amidst the steady decline in prices since November.
What place for crypto-currencies on the international scene?
The Russian military invasion of Ukraine on February 24 has raised new concerns, in addition to the already low confidence in the markets. Bitcoin, which had nearly fallen to $35,000 even before the war between Russia and Ukraine began, is now trading at around $42,000.
People started to consider crypto-assets as alternative and effective options to cope with the collapse of a national currency, the Russian ruble as a result of Western sanctions or the Turkish lira which had also caused a “digital gold rush” of the Turkish population. The geopolitical stakes of crypto-currencies were seen during the ban on Bitcoin miners in China, which caused their exodus to neighboring regions like Kazakhstan.
On the NFT side, adoption is steadily increasing, especially with the fundamental focus on NFTs and digital property for the Metaverse foundation, although trade volume is down.
DeFi adoption has also made notable changes since the market peak in November. Interest in crypto and blockchain technologies has been confirmed by large institutional players such as NBY Mellon, Mitsubishi UFG and JP Morgan banks, etc.
Citing the February 2022 bank account freeze incident in Canada, DappRadar cited it as a “marketing incident” for a more decentralized ecosystem. While the adoption of decentralized finance is lagging in the crypto space, compared to NFTs for example, the involvement and experience of large traditional players could be a game changer for this still under construction sector.
source : DappRadar
