GameFi and Metaverse Least Affected by Terra Debacle: Report

Blockchain games and NFT-related Metaverse projects "managed to avoid the bear market that followed" by posting increases in the number of 9.5% and 27% transactions respectively in Q2.

Blockchain gaming and the Metaverse managed to 'avoid' Terra's 'Lehman Brothers-style' collapse in May - although decentralized finance (DeFi) and non-fungible tokens (NFTs) did not not been so lucky, according to a report.

In a July 29 report from decentralized application data aggregator DappRadar, Terra's collapse in May was of a similar magnitude to the subprime mortgage crisis of 2008 - causing decentralized finance ( DeFi), non-fungible tokens (NFTs), and companies such as Three Arrows Capital (3AC), Celsius, and Voyager to bear the brunt of Terra's destruction.

“It is becoming clear that the Terra debacle has become a Lehman Brothers-like event that has sent shockwaves throughout the crypto industry and aftershocks that will affect us for many months to come.”< /p>

However, Dappradar noted that blockchain and Metaverse gaming projects had either minimal downsides or even positive signs of growth over the same period.

The report compares different metrics to show how Terra's collapse (in the middle of Q2) impacted the performance of various crypto sectors between the first two quarters of this year.

One of the key metrics the report looks at is deal count (the total number of completed deals), which basically shows user engagement. DeFi and NFT recorded the biggest declines with 14.8% and 12.2% each, while blockchain games and NFT-related Metaverse projects "managed to avoid the ensuing bear market" by posting increases of 9.51% and 27% each.

The report also added that while the average amount of Unique Active Wallet (UAW) activity in NFTs fell 24% in Q2, blockchain gaming saw a decline of just 7%, which suggests that users continue to interact with the game. dApps "at about the same rate as before t...