Crypto Industry Maintains Activity Despite Geopolitical Tensions

The crypto industry maintains its activity despite the current geopolitical tensions that emerged with Russia attacking Ukraine last week so let’s have a closer look at today’s latest cryptocurrency news.

Dappradar released its February 2022 Dapp industry report and found that the crypto industry maintains the activity across the DEFI and blockchain space in the face of the bearish market conditions while the NFT market seems to have entered a consolidation phase. According to DappRadar, the interest from governments and financial institutions in Web3 is increasing and they are looking for more use-cases for blockchain in different ways in today’s society. Dapp usage is up 385% since February 2021 and attracted 2.35 milion unique active wallets per day.

The usage is still down by 5% from January but it holds steady given the crypto prices were falling dramatically since November and last week, BTC dropped to as low as $34K. Russia’s invasion of Ukraine provided more causes for concern but after a short drawback, crypto actually seems to be thriving in the conflict. Bitcoin is now trading above $43K and was even more valuable as the Ruble crashed.

Regarding NFTs, the adoption remains on the rise even though the trading volume is going downwards. The on-chain data suggests the traders and NFT sales counts increased by 8% and 2% month over month. This indicates a growing user base and though NFT sales decreased by 28% to about $4 billion from the previous month. The DEFI adoption trends saw some of the bigger changes since November’s market peak. The investment bank and custodial banks including NBY Mellon, Mitsubishi UFG, and JPMorgan all confirmed interest in both crypto and DEFI apps. Dappradar named Canada’s freezing of the bank accounts in February as a marketer for a decentralized ecosystem. The report noted:

“While the potential mass adoption of DeFi might seem far compared to games and NFTs, this type of macroeconomic implications, along with a more mature DeFi ecosystem, can quickly change the narrative.”

The report outlined the growth of NFTs, DEFI, and Web3 in ecosystems besides ethereum. ETH continues to dominate these domains the domains and the chains attracting more users into the network. Binance smart Chain sees an average of 608,000 UAW that was connected to the network every day and the number however is still down 17% from January. Some of the most valuable and well-traded NFTs are traded outside of ETH like Axie Infinity, Cabada NFT, and play to earn dapps on Avalanche.