NFTs and games are not related to crypto – study

Details of the study of NFTs and games

According to the distributed application store (dapp) DappRadar, falling digital asset prices do not necessarily affect the performance of non-fungible tokens (NFTs), as they continue to rise despite the decline in cryptocurrencies.

For example, in the third quarter of 2021, as the cryptocurrency market struggled to recover its second quarter losses, the NFT market boomed, generating $10.7 billion worth of trades. Similarly, in the fourth quarter, when digital assets were on a roller coaster, NFTs continued their upward move, handling $11.9 billion in trading volume.

“NFTs were largely unaffected by the drop in cryptocurrencies,” the report says, adding that “Despite volatile crypto cycles, NFTs maintain a stagnant positive trend.”

So far this year, the cryptocurrency market has seen wild fluctuations in the prices of major cryptocurrencies. On the other hand, NFTs marked a strong start, thanks in part to the launch of the LooksRare NFT marketplace, which has become a competitor to the large OpenSea marketplace.

DappRadar noted that both the number of transactions and the number of unique active wallets (UAWs) connected to NFT decentralized applications are constantly increasing. Since December 2021, an average of 46,800 UAWs have connected to Ethereum decentralized applications (ETH) NFTs, up 43% from the third quarter of 2021.

“The undeniable role that NFTs play in both the metaverse and play-to-earn narratives has primarily contributed to positive online performance despite adverse macro performance,” DappRadar said, adding that celebrities and major brands included into space, further strengthened the market.

Moreover, the report states that the growing attention and investment in the coming metaverse only favors NFT. During 2021, a number of leading technology companies, including Meta (formerly Facebook) and KuCoin crypto exchange, have committed millions of dollars to the development of the metaverse.

“Because the outlook for this type of asset is undeniably strong, people may view the cryptocurrency’s negative trend as a buying opportunity as the value of the underlying asset, in this case Ethereum, lowers the actual price of NFTs,” the report says.

When it comes to NFTs as collectibles, the report states that the Americas “still are the most active region” with the United States leading the way in DappRadar NFT traffic “to date.” The Philippines, Brazil and Mexico follow.

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