New DappRadar report provides wide-ranging insights into the performance of the crypto and Web3 space throughout Q1 of 2022.
A quantitative analytics report published by DappRadar has unveiled a number of revelatory behavioral market indicators for the global adoption of digital assets.
The blockchain data portrays a positive sentiment for the Web3 and metaverse sectors, especially in the United States, a reactionary rise in crypto interest throughout Ukraine and Russia following the outbreak of the conflict, addition to how the well-documented surge of gas prices throughout Europe is impacting inflationary metrics.
Bar chart statistics reported a high correlation between unfavorable economic dynamics witnessed in times of currency deflation and the interest in engaging with cryptocurrencies – the data suggesting that the latter could serve as an investment hedge.
The tumultuous 217.65% deflation of the Brazilian Real (BRL) against the U.S. dollar over the past decade was reported to be an influencing factor for the 45% of participants who attest to considering purchasing a digital asset within the upcoming year. Similarly, India witnessed a 40% uptick in crypto interest following a 58.58% deflation in their native currency, the rupee (INR).
In the category titled ‘Countries with highest social media indicators for Web3 Metaverse,’ the U.S. ranked highest with a 2.2 score, followed by Indonesia and India with 1.4 and 0.6, respectively. The United Kingdom came in seventh with 0.3.
Many of the leading metaverse platforms like Decentraland, The Sandbox, Somnium Space and Roblox have attracted a large portion of their user base from the U.S.
“Fashion giants like Gucci, Dolce and Burberry have launched NFT collectibles, while Nike and Adidas have partnered with Web3 leading brands. HSBC and JP Morgan will open virtual booths in The Sandbox and Decentraland.”
Despite the growth of the total value locked (TVL) in the decentralized finance (DeFi) market to just shy of $200 billion at the time of writing, transaction volume has been steadily declining since registering a peak level in mid-January.
Similarly, the report noted that “the industry’s TVL is recovering behind the surge of holistic and fast ecosystems in Terra, Solana and Avalanche.”
A prime indicator of this growth is the number of developers transitioning over to the network. As the below graphic reveals, Terra experienced a 313% year-to-year growth, while Solana and NEAR received a 307% and 291% influx, respectively.