January 2022 is still tough for cryptocurrency investors as the current markets are witnessing turbulent fluctuations in the price of Bitcoin and other cryptocurrencies. Some have attributed the decline to recent federal intentions to introduce new price increases, and political turmoil in Kazakhstan which has led to a significant drop in bitcoin’s hash rate. On January 14, Bitcoin price dropped below $42,000 as traders continued to hope for bullish signals.
On the other hand, NFT trading and blockchain gaming seem to have resisted the decline. According to reports from DappRadar, NFT transactions have continued to increase amid the drop in crypto prices. The report stated that “the number of UAW connected to Ethereum NFT dapps has grown by 43% since the third quarter of 2021.” The figures in the report also show that funds generated from NFT trading increased from $10.7 billion in the third quarter of 2021 to $11.9 billion in the first ten days of 2022. Recent NFT developments such as the launch of LooksRare Marketplace may have also contributed to This growth.
The report also stated that “blockchain gaming continues to be widely used,” noting that it “accounts for 52% of industry use.” Expansion of metaverse developments combined with the growing success of the play-for-profit model has solidified the case for blockchain gaming to continue growing throughout 2022.
The growing interest in NFTs and blockchain gaming during this market slump can partly be attributed to the Chinese public, which coincides with recent announcements from China that the country will begin developing its own non-crypto NFT industry. According to a DappRadar report, “China is now the country with the largest user base…an increase of 166% over the numbers recorded in November.”
Although the US is now second in terms of total traffic, the country still sees 175,000 new users in the NFT ecosystem, an increase of about 38%. This comes in part from growing interests among younger audiences as millennials and Generation Z have started counting a higher percentage of traffic.
DappRadar reported that “30% of the traffic came from users of this age group… [with millennials] It is growing from 36% observed from last year.”