- Summary:
- The DappRadar report for the third quarter of 2022 is out, and it signals hopes of market recovery. We discuss its key highlights.
Table of Contents
DappRadar, the blockchain app store, has released its Q3 analysis report for the crypto industry. The report presents the performance of main blockchain ecosystems and weighs the odds of a comeback from the current bear run. DappRadar reports that the crypto industry performed significantly better in Q3 2022 than in Q2 2022, with optimistic predictions of a major bull run in the near future despite the market value still being under $1 trillion.
Despite a promising beginning to Q3, the report states that the crypto markets have been badly affected by growing inflation and inflation rates inside the global economy. Additionally, it says that without a comprehensive rebound in conventional financial markets, it is impossible to predict a worldwide expansion of cryptocurrencies due to the interconnectivity of the global economy.
DappRadar also notes that the European Union’s ratification of the Markets in Crypto-Assets (MiCA) laws suggests that crypto is becoming increasingly accepted by governments and the financial establishment.
Key performance indicators in the DappRadar Report
The Merge fails to ignite Ethereum’s spark
The quarter’s most significant crypto event was Ethereum’s Merge. While the event was technically successful, the DappRadar report shows a 36% decrease in Layer-2 transactions and a 27% decrease in Layer-2 UAWs in the days following it. Ethereum’s price fell by 15.75% from the previous month, continuing a downward trend that is now ten months old.
There has been a continuing decline in the value of ETHW, the native PoW asset that forked off from Ethereum in the Merge, as coin holders unload their airdropped coins. Also, post-merge Layer-2 activity dropped by 36% in transactions and 27% in UAWs compared to pre-merge levels. On the other hand, the TVL for Optimism and Arbitrum has reached $1 billion, which is a big surge from the previous quarter.
Solana the biggest loser as DeFi makes marginal gains
Downturn pressures on the DeFi market eased by 2.9% from Q2 to Q3, indicating a possible recovery. Furthermore, Ethereum is still the most popular blockchain for transactions in DeFi. Its market share went up 3.17%, to 69%, as its TVL hit $48 billion. Also, there was a 10.89% increase in TVL for BNB from Q2 to Q3, bringing its total to $6.6 billion. The largest casualty was Solana, which had its TVL fall by 28.78% after an attack in August. The hack saw over $6 million stolen from 8000 wallets.
Hacking losses reduce
The DappRadar Report estimates that in Q3 2022, the crypto sector lost $428,718,083 to hacking. The Nomad Bridge hack and Wintermute hack were the biggest heists, leading to losses of $190 million and $ 160 million, respectively. However, compared to the same period the previous year, the industry experienced a decrease of $62.9% in losses.
Gaming stays up as DeFi shows resilience
There was good and bad news in the NFT market in Q3: trading volume was $2.71, down 67% from Q2, but sales volume was up 8.3% from Q2. In contrast, blockchain-based games are still lucrative, with Unique Active Wallets increasing by 8% month over month to 912K. Finally, the DappRadar report predicts that another bull run will happen and that it could be much stronger than the previous one.