Metaverse and GameFi least hurt by Terra incident: Report

August 03, 2022

By Anjali Kochhar

Blockchain gaming and the metaverse have been least affected by Terra’s collapse in May, while decentralized finance and non-fungible tokens (NFTs) were not so lucky, a new report has found out.

A report published by decentralized application (DApp) data aggregator DappRadar last week found that the collapse of Terra in May was similar in scale to the 2008 subprime mortgage crisis.

“It is becoming clear that the Terra debacle has become a Lehman brothers-like event that has sent shockwaves across the entire breadth of the crypto industry and aftershocks that will affect us for many months,” the report said.

However, the report noted that blockchain gaming and metaverse projects showed either minimal drawbacks or even positive signs of growth in the same period.

According to the report, DeFi and NFTs saw the biggest drops with 14.8% and 12.2% apiece, while blockchain games and NFT-related metaverse projects “managed to sidestep the ensuing bear market” by posting increases of 9.51% and 27% each.

While the average amount of activity from unique active wallets (UAWs) in NFTs dropped by a hefty 24% in Q2, blockchain gaming saw a drop of just 7%, suggesting that users continue to interact with gaming DApps “at a more or less the same rate as before the Terra incident.”

The trading volume for metaverse-related NFT projects was also described as a “beacon of hope,” as volumes increased by a whopping 97%.

The research noted that amongst the most NFT-friendly countries, Montenegro takes the number one spot with 86.2% positive tweets. Bosnia, Herzegovina, and Luxembourg share a close second place with 78% positive sentiment. Cuba takes the third spot with 71% approval.

On the other end of the spectrum, Poland ranks as the most NFT apprehensive country, with 23% negative posts followed by Nicaragua with 22% and Belize in third place with 19.3%.

About the author

Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.

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