According to a report, blockchain games and the Metaverse have sidestepped the “Lehman Brothers-like” collapse of Terra in May, but nonfungible tokens and decentralised finance (DeFi) have not.
The Tera’s Debacle
DappRadar released a report on Friday comparing Terra’s May collapse to the 2008 subprime mortgage crisis. Terra’s devastation was borne by DeFi, NFTs, Celsius, Voyager, and companies like Three Arrows Capital (3AC).
Within the same period, DappRadar reported that blockchain gaming and metaverse initiatives either showed some downsides or positive signs.
How Was the Study Conducted?
Over the year’s first two quarters, the study contrasts numerous measures to show how the Terra crash (midway through Q2) affected various crypto sectors.
Among the essential measures examined in the report is the transaction count, which measures how much user involvement there is. Again, DeFi and NFTs saw the most significant reductions with 14.8 % and 12.2%, respectively, while blockchain games showed 9.51 % and 27.6%, respectively.
What Did the Study Find Out?
Blockchain gaming experienced a loss of only 7 % in Q2 compared to NFTs, which experienced a 24 % decline. According to this report, users interact with gaming DApps “at approximately the same rate as before the Terra event.”
Although the overall NFT market declined by 32.66 % since the second quarter, the trading volume for metaverse-based NFT projects surged by 97 %.
According to a different DappRadar analysis from July, blockchain gaming could have done better than other crypto industries due to the non-speculative elements of games themselves.
While investments in blockchain gaming and metaverse initiatives were stable throughout Q2 despite the destruction of Terra.