NFT Sales and Blockchain Games Continue to Grow Despite Recent Market Drop: Report

NFT Sales and Blockchain Games Continue to Grow Despite Recent Market Drop: Report

January 2022 continues to be a tough one for crypto investors as the current markets witness turbulent price swings of bitcoin and other cryptocurrencies. Some have attributed the slump to recent federal intentions to introduce fresh rate hikes and 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 look for bullish signals.

NFT trading and blockchain gaming, on the other hand, appear to have resisted the slump. According to reports from DappRadar, NFT transactions continued to increase amid falling crypto prices. The report states that “the number of ADRs associated with Ethereum NFT dapps has increased by 43% since Q3 2021.” Figures from the report also show that the money generated by 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 marketplace may also have contributed to this growth.

The report also noted that “blockchain gaming remains prevalent,” noting that it “represents 52% of usage in the industry.” The expansion of Metaverse developments alongside the growing success of the play-to-earn model have also strengthened the case for blockchain gaming continuing to grow into 2022.

The growing interest in NFTs and blockchain games during this market slump can be partially attributed to Chinese audiences, which coincides with recent announcements from China that the country will begin developing its own non-crypto NFT industry. According to DappRadar’s report, “China is now the country with the largest user base… with a 166% increase from the numbers registered in November.”

Although the United States now ranks second in terms of total 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 drive a higher percentage of traffic.

DappRadar reported that “30% of traffic came from users in this age group… [with millennials] Growth versus the 36% seen last year.”