January 2022 continues to be challenging for crypto investors as current markets experience turbulent price swings for Bitcoin and other cryptocurrencies. Some have attributed the crisis to recent federal intentions to introduce further rate hikes and political unrest in Kazakhstan that has significantly reduced bitcoin’s hash rate. On January 14, Bitcoin price fell below $42,000 as traders continued to hope for bullish signals.
NFT trading and blockchain games, on the other hand, seem to have resisted the decline. According to reports from DappRadar, NFT transactions have continued to surge amid declining crypto prices. The report states that “the number of UAWs connected to Ethereum NFT dapps has increased by 43% since the third quarter of 2021”. The report figures also show that the money generated from NFT trading increased from $10.7 billion in the third quarter of 2021 to $11.9 billion in the first ten days of 2022. Recent developments in the NFT space such as the launch of the LooksRare market may also have contributed to this growth.
The report also states that “blockchain games continue to be widely used” and notes that they “account for 52% of industry usage.” The expansion of metaverse developments alongside the growing success of the play-to-earn model has also strengthened the case for the continued growth of blockchain games throughout 2022.
The growing interest in NFTs and blockchain games during this market crisis can be partly attributed to the Chinese public, which coincides with recent announcements from China that indicate the country will begin to develop its own NFT industry. not crypto. According to DappRadar’s report, “China is now the country with the largest user base…growing 166% from November numbers.”
Even though the United States is now second in terms of overall traffic, the country still saw 175,000 new users in the NFT ecosystem, a growth of around 38%. Part of that comes from growing interest from younger audiences as Millennials and Gen Z begin to account for a higher percentage of traffic.
DappRadar reported that “30% of its traffic came from users in this age bracket… [with millennials] up from the 36% observed last year. »