DappRadar Crypto 2022 will enter the history books as one of the most difficult years ever. We saw a bear market colored by some external factors. For example, the Ukrainian-Russian war. There have been a few major events in the cryptocurrency itself as well. For example, the Terra Luna explosion and the FTX collapse. Still, some altcoins continued to build. That’s why we’re taking a look at the 2022 DappRadar dApp industry report.
A panorama of 2022 for altcoins from DappRadar
An overview of the cryptocurrency market
2022 saw the crypto enter a tough bear market. Macro factors played an important role in this. For example, the US Federal Reserve’s interest rate hikes and high inflation. Other external factors, such as the war in Ukraine, were also a factor. The crypto space has also had an eventful year with Terra Luna and FTX in the limelight.
However, we have also seen many positive developments. For example, The Merge was a big deal. This is where Ethereum reduces power consumption by 99.9%. We also saw that the DeFi section comes with some different new features. ZK or zero knowledge became the new keywords.
We’ve also seen an increase in institutional adoption in crypto. Many residential names or brands have entered the Blockchain field. For example, Nike, Adidas, Starbucks and Disney are a few of them. Crypto has also sponsored major events such as World Championship football. We have also witnessed some big banks getting into crypto. For example, Fidelity, BlackRock, and Goldman Sachs have entered the crypto space.
A sector that gets stronger despite current market conditions
So, despite bear market conditions, many projects continued to build. This is a fantastic development and these altcoins will reap the rewards when the next bull run starts. This shows us that the crypto market has been showing resilience in this troubling year. For example, DappRadar has seen a record number of dApps shipped. Leading protocols in process counts were Solana and WAX. We also see WAX as a leading protocol in the average daily Unique Active Wallets. They share this with BNB Chain.
We saw a 50% increase in unique active wallets throughout 2022. As a result, the crypto industry could solidify its position. These are clear signs of a resilient industry maturing. The photo below shows some of the highlights in crypto in 2022.
Overview of DeFi dApps
DeFi also had a year full of challenges. Most importantly, we saw a significant drop in TVL. This happened after the Terra Luna collapse. It fell from 211 billion in January to $55 billion in December. This means a loss of 73.97%. Cryptocurrency prices have also dropped, which is another factor. On the other hand, we also saw growth and new features or dApps. For example, connecting TradFi (traditional finance) to DeFi. Major banks such as JP Morgan, Société Générale, and DBS have entered the DeFi space.
While DeFi lost TVL overall, we also saw a DeFi branch gain in TVL. These are Layer-2 assays. More specifically, Arbitrum, Optimism, and Immutable X filled the Terra Luna void. Arbitrum just lost 12% in TVL. They now have $1.27 billion TVL to show. Optimism, on the other hand, gained 127.6% in TVL. Polygon is down 79.6% on TVL and is now $1.69 billion. Phantom has lost 87.3% and $575 million is sitting on TVL. Cronos followed this trend and lost 57%. They now have a TVL of $558 million. But Solana saw the biggest loss, down 94.95%. His TVL is currently $237 million.
Despite all these negative numbers, the DeFi future looks optimistic. There’s a lot of venture capital (VC) interest. In the first 6 months of the year, VCs invested over $14 billion in crypto. This included various DeFi altcoins. The photo below shows some of the highlights from DeFi this year.
Altcoins hit by scams and hacks in 2022
In 2022, a total of 312 scams and hacks were seen on DappRadar’s radar. This amounted to $48 billion. Terra Luna alone is worth $40 billion. That is 80% of the total. CEXs have seen the most attacks in this area. The FTX collapse put him in 4th place with $1 billion. In summary, the damage would not have been so great without Terra Luna. The photo below shows the 10 biggest scams and hacks for 2022.
Overview of NFTs in 2022
NFTs continued to fluctuate throughout 2022. In fact, the first quarter saw the smoothest NFT transaction volume ever, at $12.46 billion. However, it fell to $8.4 billion in the second quarter. The Terra Luna effect and macro conditions also knocked on the NFT door. Process volume decreased further in the 3rd and 4th quarters. The total price was $4.4 billion. That’s almost peanuts compared to the 3rd and 4th quarters of 2021, with $23.2 billion in process volume.
The number of sales increased in the first half of the year. Q1 with 483.13%, or 28.44 million. In the second quarter, an increase of 73.87%, or NFT of 20.23 million, was sold. However, Q3 and Q4 were less productive. They decreased by 54.89% and 58.15%, respectively. Trader count was another area where NFTs grew. Q1 was 675.88%, or 3.18 million traders. In Q2, growth increased by 130.42%, or 2.26 million traders, compared to Q2 2021. Q3 still saw an increase of 96.12%, or 3.2 million traders. On the other hand, Q4 dropped 25.53%, or 2.7 million traders. See the picture below for this.
The drop in cryptocurrency prices is one reason more people are getting into NFTs. But at the same time, we saw mainstream NFT adoption and new markets emerge. The NFT market generated sales of $25 billion. This gives hope for even smoother numbers for 2023.
New NFT marketplaces
There were also several new NFT marketplaces. For example,
- LookRare: They see themselves as a community-driven NFT marketplace.
- x2y2: Their goal is to be truly decentralized and faithful. Moreover, they put the interests of the creators first.
There are a few more and this is proving that competition in the NFT market is heating up. However, OpenSea is still the president of them all. Process volumes increased by 26.22%, or $18.6 billion, compared to 2021. Second is Solana’s Magic Eden, which reached $1.54 billion, up 268.13% in process volume. See the picture below.
Collections may have copyright options on their NFTs for secondary sales. It varies in the middle between 2.5% and 7.5% or more. Marketplaces reacted differently to this debate. OpenSea lowered royalties, which caused a controversy. They have now made it optional. Magic Eden originally made royalty-free options. However, it lost a large user base. Now, they’ve made it optional too and have regained 90% of their users. This is a complex debate that will continue for a while.