According to a DappRadar report, Gen Z and increased interest across Asia have made NFTs grow brilliantly despite instability.
The value of Bitcoin and other cryptocurrencies remains to fluctuate drastically in January 2022, making it hard for crypto investors. Several have linked the downturn on recent federal plans to raise interest rates, and also political turbulence in Kazakhstan, which has severely reduced bitcoin's hash rate. Bitcoin dropped below $42,000 on January 14 as traders looked for bullish signs.
NFT trading and blockchain gaming, on either side, appear to have survived the downturn. NFT transactions managed to rise despite decreasing crypto prices, according to DappRadar reports.
According to the report, “the number of UAW connected to Ethereum NFT dapps grew by 43% since Q3 2021.”The wealth made by NFT trading increased from $10.7 billion in Q3 2021 to $11.9 billion in the first 10 days of 2022, as per the report. The debut of the LooksRare marketplace, and also the latest growth in the NFT sector, may have helped this development.
The report also revealed that "blockchain games continue to be widely used," and also that they "represent 52% of the industry's usage." Growing metaverse innovations, and also the rising success of the play-to-earn model, have also supported the cause for blockchain games to keep developing through 2022.
The rising interest in NFTs and blockchain games throughout this market downturn can be partially ascribed to the Chinese public, which aligns with the latest Chinese statements that the nation will start creating its own non-crypto NFT sector. "China is now the country with the most extensive user base...increasing 166% from the numbers registered in November," as per DappRadar's report.
Although the United States has now become second in terms of total traffic, the country saw 175,000 new users join the NFT ecosystem, representing a 38 % rise. This is due in part to a rise in interest among young viewers, as millennials and gen Z begin to contribute to a larger share of traffic.
DappRadar states that “30% of its traffic came from users from this age group… [with millennials] growing from the 36% observed from last year.”