The demise of FTX pressures various corners of the cryptocurrency ecosystem and has the predictable effect of challenging investors’ willingness to hold digital assets, including crypto-correlation stocks.
While FTX’s collapse has a contagion effect — the extent of which some experts argue is not fully known — some corners of the crypto industry are surprisingly resilient. This includes blockchain-based gaming, which has long been seen as a key growth driver for broader blockchain adoption beyond digital currencies.
That positivity can be a plus for exchange-traded funds like the )+. On his part, DAPP has shown signs of improvement recently, increasing almost 4% last week.
“Despite the FTX collapse, Web3 games are still a driving force for the dapp industry. In October and November, gaming activity accounted for nearly half of all blockchain activity tracked by DappRadar across 50 networks, with 800,875 daily unique active wallets (UAW) interact with games’ smart contracts in November,” .
The evolution of blockchain gaming highlights the broader use for related technologies. While that use case has long revolved around serving as the digital ledger for digital currency transactions, investors are waking up to the point that there is much more to the blockchain story.
The “more” includes applications with digital identification, medical records, real estate, wills and trusts, games, rewards platforms and much more. Add to that, the intersection of blockchain and gaming is pertinent in the emerging non-fungible token (NFT) market.
“The impact of blockchain games is also visible in the NFT market, where in-game NFTs had a total trading volume of $55 million in the past two months. Gods Unchained remains the top game by trading volume, generating 60% of the total trading volume for wild asset,” according to DappRadar.
Perhaps reinforcing the blockchain thesis – and gaming is also relevant at this point – are the technology’s applications within the metaverse, which is still a young market that could have ample growth potential.
“Even though investments in blockchain-based games and Metaverse projects have decreased in recent months, $534 million was raised in October and November. It is also worth noting that many projects have focused on building Web3 gaming infrastructure. Examples of this are Horizon Blockchain Games and Fenix Games, both of which raised a total of $190 million,” concluded DappRadar.
DAPP’s blockchain-related holdings include Block (NYSE:SQ) and Coinbase (NASDAQ:COIN).
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