Key takeaways from DappRadar’s 2022 review
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2022 will go down as a challenging year for the cryptocurrency and blockchain space, but the adversity has been littered with many positives for the decentralized application (DApp) ecosystem.
DappRadar has released its annual report on the industry, which focuses on challenges that come alongside notable technological achievements and an increasing number of active daily users.
Cointelegraph highlights the key takeaways from the DApp industry in 2022, relevant given macro factors such as inflation concerns across major economies, the collapse of industry-specific projects like Terra/Luna and FTX, and market woes across the board.
Perhaps most telling is unique Active Wallet (ADR) data from 2021 and 2022, showing a 50% year-over-year increase in average daily ADRs. This is an increase from 1.58 million daily users in 2021 to an average of 2.37 million daily active users in 2022.
Source: DappRadar
It must be noted that as of February 2022, there was a downward trend in DApp users that DappRadar linked to the escalating war in Ukraine as well as crypto-specific black swan events, including the collapse of Terra/Luna and FTX.
The decentralized finance (DeFi) industry was particularly hard hit in the wake of Terra’s UST depeg and the resulting decline in the cryptocurrency market, with a significant drop in total locked value (TVL) of around 73% to $55 billion in December 2022.
Related: Gaming accounts for over half of blockchain industry usage, DappRadar
Layer-1 DeFi protocols saw the largest drop in TVL, with Ethereum seeing a 74.5% drop in TVL to $32.12 billion, while the second-largest DeFi ecosystem, BNB Chain, saw a decline in 2022 the TVL recorded by 62.5%. Layer 2 protocols fared slightly better, with Arbitrum down 12% to $1.74 billion. Optimism’s TVL increased by 127.60% to reach $669 million.
On-chain data for non-fungible token (NFT) trading volume contrasted with DeFi’s year to date. NFT trading volume increased by just 0.41% year-over-year, while the number of retailers grew by a staggering 876% to 10.6 million users in 2022. NFT sales also performed well, rising 10.6% to 68.35 million. OpenSea remains the most popular NFT marketplace, accounting for 73% of organic NFT trading volume.
Blockchain games played a significant role in the DApp space, accounting for 49% of activity in 2022 with an average of 1.15 million daily ADRs. Overall, the sector produced 7.4 billion transactions that year.
Blockchain-based trading card game Splinterlands was the most popular platform according to DappRadar, growing 85% to 217,914 monthly unique active wallets in 2022.
The Terra implosion accounts for $40 billion in lost funds, while DappRadar estimated the median loss per hack at around $283,000 and monthly losses at $728 million.
DappRadar integrated 49 blockchains, tracked 13,000 DApps and 13,500 NFT collections and found that the increased number of DApps reflects the sector’s resilience and potential, with projects continuing to build and innovate despite a challenging macro environment.
Hacks, thefts and rug pulls are also featured in DappRadar’s 2022 review. A total of 312 attacks resulted in total losses totaling $48.74 billion, the highest amount recorded since Bitcoin’s inception in 2009.
