DappRadar, the leading decentralized application store, today released its Q1 2022 Dapp Industry Report. It cited relative stability in the blockchain industry. Even with the bearish crypto market and $1.19 trillion in hacks, exploits, and other cybercrimes in the first 3 months of 2022; an average of 2.24 million active wallets interacting daily with Dapps. The usage of blockchain remained steady, with a loss of 5.8% in Q4, 2021 and a gain 396% in Q1, 2021.

Security concerns regarding token bridges were most severe for Ronin and Wormhole. Ronin saw a $600 million fine in March. Wormhole suffered a more severe financial blow, with Wormhole seeing more than $300million drained in February. Wormhole accounted for over 80% of Q1’s $1.19billion. Vitalik Buterin pointed out the technical limitations in bridges and now questions whether an interoperable multichain future, given Q1’s exploits, would be possible.

The pace setting segment of gaming dapps was once more established. They accounted for over 1.2 million users, which is 50.5%, in Q1, and represent a 5.8% decline from Q4 2021. While NFTs are cooling, they have not stopped growing despite the calls for a bubble to burst. Their trade volume was $12 billion, which excludes suspicious activity on LooksRare NFT market. But the sales are increasing and the unique traders are also on the increase. Yuga Labs bought the IP of CryptoPunks & Meebits from Larva Labs. These are two important NFT collections that were previously held by Yuga Labs. The move established Yuga Labs as one of the most dominant brands in Web3, as they now represent 44% of Ethereum’s Top 100 NFT collections market cap.

“The industry is under a significant stress test and, so far, is handling things well and showing the true potential of cryptocurrencies and dapps. DeFi has embraced Gamification in order to attract a larger audience. Leading gaming projects have consolidated their positions. NFT collectors now seek real utility and are more savvy than ever as new projects emerge and projects try to keep their promises. It’s reminiscent of 2017’s ICO period. Now it’s time to see who’s in for the long haul.” commented Modesta Masoit, Head of Finance and Research at DappRadar.
DeFi felt the downtrend more than any other industry. The industry’s Total Value Locked (TVL) and the number of UAW connected to DeFi dapps took a hit along with the price of cryptocurrencies. At the end of March, the DeFi industry’s TVL was estimated at $214 billion, 8.4% lower than December 2021. Despite decreasing TVL and usage metrics from the last quarter, it appears that the industry is consolidating and expanding its reach. It was second in TVL, behind only, and had $23 Billion locked up at the close of March. This is 68% more than Q4, 2021.

The sanctions against Russia had a negative impact on the market, including crypto. However, token prices are recovering and the confidence is rising. Web3 also had a positive impact on society, as UkraineDAO and many other groups raised millions to address the humanitarian crisis.

The Q1 2022 Dapp Industry Report is the latest edition of DappRadar’s regular industry reports — the company’s flagship report covering the performance of the blockchain industry. Other report series include Dapp User Behavior, Whale Analysis, and the Monthly Blockchain Gaming Report.

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