DappRadar: Blockchain Gaming Dominates Amid Regulatory Chaos

The blockchain gaming segment holds a 37% market share.

Regulatory fever intensified in the cryptocurrency industry last quarter, with several areas including DeFi and NFTs bearing the brunt of the troubling state of affairs. On the other hand, the blockchain gaming industry seems unshakable in the face of turmoil.

According to a DappRadar report, the gaming category continues to dominate, with a 37% share of the overall decentralized application (dApp) market. That figure is still down from a market dominance of 45% in the previous quarter.

The data also showed that daily unique active wallets (dUAW) for on-chain dapps increased by almost 8% compared to the first quarter, which could be seen as an encouraging sign of market recovery.

DappRadar states,

“Despite the prevailing regulatory turmoil, the digital asset market continues to thrive, as reflected in the growth in active participation.”

As DeFi dominance surged from 23% to 32%, there was a modest resurgence in the form of meme coin hype and L2 airdrop hunters. However, the TVL of DeFi protocols fell by more than 7% from the previous quarter to $77.6 billion.

The report noted that the downturn was unexpected and in stark contrast to the expected growth trajectory of the DeFi space.

While Ethereum continues to lead, with a slight 2% decline from the previous quarter, the same is not true of the other two leading blockchains, BNB and Polygon.

Following the SEC lawsuit in early June, BNB’s TVL fell by 19%, the worst contraction of any blockchain considered. Polygon a;sp saw an 8% reduction in TVL as a direct result of the regulator’s attack.

The NFT market was hit the hardest, with volumes falling 38% to $2.9 billion in the second quarter. However, the decline does not necessarily indicate weakening market interest or activity, the report noted.