- Crypto market totals as of July 2022
- TVL of the largest blockchains
- The Play to Earn game market is growing
- NFT keeps growing
- More calls for regulation in crypto
DappRadar, a global decentralized app store, released its July 4 report on the blockchain industry, reporting that DeFi is starting to recover from the Terra collapse.
The crypto industry is still feeling the effects of the Terra collapse, which affected the entire Web 3.0 world, including DeFi, NFT and meta-universes. The market valuation of the entire crypto industry fell from $3 trillion to $945 billion in less than eight months.
From a macroeconomic perspective, recent US inflation rates reached their highest level in decades, with interest rates rising 75 basis points and the economy shrinking by 0.9% in the second quarter of 2022. This was the second consecutive quarter for the United States officially entering recession.
Personal income is declining due to rising costs. Investors are withdrawing funds from the stock and cryptocurrency markets to repay loans and minimize liabilities. This increases pressure from sellers and reduces the volume of mid-term trading, as it becomes harder to identify profitable odds.
Decentralized application activity reached its lowest point, with 1.68 million daily unique active wallets (UAW) connected to the blockchain in July. This is an increase of 20% from July 2021, but there has been a 4% decrease from the beginning of 2022.
For the first time since April 2021, the number of UAWs connected to DeFi is less than half a million. This represents a 22% decrease from last month and a 31% decrease from last year.
Nevertheless, some blockchains have shown growth, such as Flow, that is up more than 200% in daily UAW compared to last month, largely due to the recent launch of a smart contract without deployment permission – anyone can now deploy a smart contract on Flow’s core network.
Because of the slow but steady recovery of the crypto market, the decentralized finance (DeFi) industry has seen an increase in total value. TVL, or total value locked, has served as a benchmark for measuring the performance of decentralized applications. TVL reached a record high of $253.91 billion on December 2, 2021.
After the onset of crypto winter, aggregate TVL dropped. And it was not until July that it began to rise: as of July 31, it was $82.3 billion, up 22% from the $67.3 billion it was on July 1. This increase can be attributed to a jump in TVL in seven of the top ten smart contract chains.
- Ethereum’s first July TVL was roughly $46 billion and rose to more than $57.9 billion at the end of the month.
- TVL BNB was worth nearly $5.97 billion as of July 1 and reached about $6.8 billion at the end of the month.
- TRON TVL started July at $3.95 billion, but it rose to $5.9 billion on July 31.
- Avalanche rose from $2.68 billion to $2.81 billion.
- Solana (SOL) rose from $2.47 billion to $3.2 billion.
- Polygon and Cronos grew $270 million and $110 million respectively.
The gaming category saw the most significant growth, as the figure was up 98% over last year, reaching an average of 967,662 daily UAWs. This is not surprising, as many blockchain games with really exciting game mechanics have been released over the past year, taking entertainment to the next level.
Games account for almost 60% of the industry’s usage. The gaming sector is bucking the downtrend, showing nearly 1 million unique active wallets per day and $857 million in transactions.
The best blockchain games are retaining their player base, showing genuine engagement. What is more, blockchain-based meta-events and gaming ventures continue to attract more and more venture capital.
It is worth noting that UAW gaming dominance has increased from 52% to 57.39%, which is a very optimistic trend for this category.
For the first time since June 2021, NFT trading volume was under $1 billion. At the same time, the number of UAW NFTs continues to increase. More than 130,418 daily UAW users have connected to decentralized NFT-related applications, mostly thanks to Solana and BNB Chain, which have updated their NFT features.
Two new marketplaces have emerged: the Gamestop NFT Marketplace, which debuted July 11, 2022, and Nickelodeon’s NFT marketplace, which launched July 19, 2022.
GameStop NFT is a non-storage-based marketplace built on Ethereum Layer-2 blockchain technology. In its first two days of operation, GameStop NFT surpassed the NFT Coinbase marketplace. Since launch, the total trading volume of the top 50 collections is approximately $12 million.
Nickelodeon’s NFT marketplace posted total sales of more than $2 million in less than three weeks. The marketplace exclusively trades the first-ever Nickelodeon NFT series, “Nickelodeon: Rugrats & Hey Arnold!”, which totaled more than 1,700 ETH ($2.89 million) on OpenSea, the industry’s leading NFT marketplace.
The emergence of new competitors has made things difficult, but OpenSea is still the dominant marketplace, although its marketplace share has fallen from 84% in May to the current 58.6% in July.
The marketplace changed its layout and look, creating a new user interface. The company also acquired Gem and released Seaport on April 27. This open-source project is expected to significantly reduce gas fees, which can skyrocket during periods of high demand.
At the end of June 2022, the Council Presidency and the European Parliament reached a preliminary agreement on Markets in Crypto Assets (MiCA), which covers digital currencies and stable coins, as well as trading venues and wallets where crypto assets are stored.
This regulatory framework aims to protect investors and maintain financial stability while enabling innovation and making the crypto asset sector more attractive. MiCA aims to provide more clarity across the European Union, as some member states already have different national legislation regarding crypto assets. However, there was no specific regulatory framework at the EU level.
Almost simultaneously, the US Treasury Department published a framework for international cooperation on digital assets, which organizes cooperation within the G7, G20, Financial Stability Board (FSB), Financial Action Task Force (FATF), Egmont Group of Financial Intelligence Units (FIU), Organization for Economic Cooperation and Development (OECD), International Monetary Fund (IMF), and the World Bank.