U.S. Cryptocurrency Adoption Remains Strong Amid Global InflationKiana Griffin
A new DappRadar report provides a wealth of information on the performance of cryptocurrencies and the Web3 sector during the first quarter of 2022.
A quantitative analytics report published by DappRadar presented a number of indicative behavioral market indicators regarding the global adoption of digital assets.
Blockchain data reflects positive sentiment towards the Web3 and Metaverse sectors, especially in the United States. As well as a sharp increase in interest in cryptocurrencies in Ukraine and Russia after the start of the military operation, and the impact of a well-documented gas price hike across Europe on the inflationary performance of the region.
The statistics showed a strong correlation in the histogram between the adverse economic performance seen during currency deflation and interest in cryptocurrencies, with the data suggesting that digital assets can serve as an investment hedge.
The Brazilian real (BRL)’s blistering 217.65% deflation against the US dollar over the past decade has been reported to be an influencer for 45% of participants who confirm they are considering buying a digital asset in the coming year. Similarly, India saw a 40% increase in interest in cryptocurrencies after a 58.58% deflation in their national currency, the rupee (INR).
In the Top Social Media Scores for Web3 Metaverse category, the US ranked first with a score of 2.2, followed by Indonesia and India with 1.4 and 0.6, respectively. Great Britain finished seventh with 0.3.
Many of the metaverse’s leading platforms, such as Decentraland (MANA) , The Sandbox (SAND) , Somnium Space (CUBE) , and Roblox , have drawn much of their user base from the US.
“Fashion giants like Gucci, Dolce and Burberry have released NFT collectibles, while Nike and Adidas are partnering with top Web3 brands. HSBC and JP Morgan will open virtual kiosks at The Sandbox and Decentraland,” the report said.
Despite the rise in total value locked (TVL) in the decentralized finance (DeFi) market to just under $200 billion at the time of writing, transaction volume has been steadily declining since registering a peak level in mid-January.
Similarly, the report notes that “The industry’s TVL is recovering from the heyday of holistic and fast-growing ecosystems in Terra (LUNA) , Solana (SOL) and Avalanche (AVAX) “.
The main indicator of this growth is the number of developers moving to the network. As you can see from the chart below, Terra posted 313% year-on-year growth, while Solana and Near (NEAR) saw inflows of 307% and 291%, respectively.