Blockchain-based games and NFT trading were the driving force behind dapp adoption during Q3, according to defi insight platform Dappradar. In its Dapp Industry Report: Q3 2021 Overview, Dappradar states that the importance of these new activities in the crypto industry rose dramatically, making the space more diversified and competitive in the process. Defi also got a boost with platforms like Solana and Terra maturing to accommodate more projects.
Dappradar: NFTs and Play-to-Earn Were Key During Q3
NFTs and play-to-earn games were very important for the industry during the last quarter, according to the Dapp Industry Report: Q3 2021 Overview issued by Dappradar. The report states the sector has surpassed traditional decentralized apps in unique active wallets, a testament to the popularity of these tools nowadays.
The play-to-earn movement attracted more than 754,000 daily unique active wallets during Q3, providing more activity than other more established decentralized finance protocols. This surge has been in part the product of the irruption of Axie Infinity in the market last quarter, a blockchain game that has already moved more than $1.6 billion. The NFT sector also experienced unprecedented growth, increasing its value by 704% quarter-on-quarter.
Diversification Is Key
The reason for all this boom in previously ignored or marginalized sectors of the industry has to do with the direction that the market has taken, giving value to diversification. This is the opinion of Modesta Jurgelevičienè, Head of Finance & Research at DappRadar, who stated:
If I were to sum up Q3 in a single word, it would be ‘diversification’. The play-to-earn movement became a key driver in the space, NFTs turned towards greater utility and secured record volumes, and the DeFi space got a lot more interesting and competitive with the likes of Solana and Terra.
In general, this gave new breath to the market at that time, when prices were stagnant. The blockchain sector managed to keep expanding as a whole, recording growth of 25% quarter-over-quarter and 509% year-over-year.
While Ethereum is the incontestable leader in the defi market, two blockchains have entered the space with force. Solana reached $8.28 billion TVL during this quarter, an increase of a whopping 1,300% compared to the last quarter. Also, Terra has slowly made itself more relevant by introducing protocols like Anchor, which offers 20% APY over stablecoin deposits. Terra’s TVL is $8.09 billion, up 137% from the last quarter.
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