January 2022 continues to be a difficult month for crypto investors as the current markets witness turbulent price fluctuations of Bitcoin and other cryptocurrencies. Some have attributed the crash to recent federal intentions to introduce more rate hikes and to the political unrest in Kazakhstan, which has significantly reduced Bitcoin’s hash rate. On Jan. 14, Bitcoin’s price fell below $42,000 as traders continued to await bullish signals.
NFT trading and blockchain gaming, on the other hand, appear to have weathered the decline. According to reports from DappRadar, NFT transactions continued to increase despite falling cryptocurrency prices. The report states that “the number of unique wallet addresses associated with Ethereum NFT dapps has increased by 43% since Q3 2021.” Figures in the report also show that the money generated by NFT trading has skyrocketed from $10.7 billion in Q3 2021 to $11.9 billion in the first 10 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 found that “Blockchain gaming remains prevalent,” noting that it “represents 52% of industry usage.” The expansion of Metaverse developments coupled with the growing success of the play-to-earn model have also strengthened the case for blockchain gaming to continue growing into 2022.
The growing interest in NFTs and blockchain games during this market downturn can be partially attributed to the Chinese public, which coincides with China’s recent announcements that the country will begin developing its own non-crypto NFT industry. According to the report by DappRadar “China is currently the country with the largest user base… up 166% from the numbers recorded in November.”
Although the United States is the second largest country in terms of global traffic, the country still recorded 175,000 new users in the NFT ecosystem, a growth of around 38%. This is partly due to growing interest from younger audiences as Millennials and Gen Z are starting to account for a larger percentage of traffic.
This is reported by DappRadar “30% of their traffic came from users in this age group… [con los millennials] growing from the 36% observed last year”.