Some major findings have come from the February DappRadar Report. Among them is that DappRadar found that the number of unique active wallets trading NFTs has hit its highest numbers ever.
February DappRadar Report breaks down a mixed month for NFTs and Crypto
The DappRadar Industry Report for the month of February starts off by noting the current bear market trend in the crypto space. However, it adds that the number of different sectors building Web3 applications is growing. This growth despite an overall downward movement makes for a mixed bag when it comes to evaluating February.
For example, it notes that the number of Unique Active Wallets (UAW) interacting with NFT dapps is “higher than ever”. For those that don’t know, decentralized apps (dapps) are applications that have their smart contracts on a decentralized network. Of course, this includes most of the NFT-related websites and applications in Web3.
Significantly the number of UAW increased despite the fact that NFT trading volume went down from its January levels. Indeed, NFT trading volume hit the gaudy mark of $6 billion in January. As a result, DappRadar notes early on in the report that the NFT market is in a consolidation phase.
All things considered, the number DappRadar reports point to an 8% increase in the number of unique NFT traders. In other words, NFT adoption is growing, even in the middle of a down period when it comes to actual NFT trading and sales volume. Specifically, DappRadar puts the average daily number of UAW connecting to a dapp at 2.35 million.
Other key takeaways from the February report
To give some more context to the current bear market in crypto, DappRadar notes in the report that cryptocurrencies have dipped in value by as much as 50% since November. What’s more, and while it is far from the most serious consequence of the situation, the market has fallen further in the aftermath of the situation in Ukraine.
There were some other remarkable takeaways from this month’s edition of the DappRadar Report. One figure that stands out is that over $375 million was lost due to scams and thefts. Without a doubt, this speaks to how far the NFT and crypto spaces still have to go when it comes to security. On that note, you should definitely check out our guide on how to keep your crypto and NFTs safe from scams.
On a more positive note, NFT activity outside of the Ethereum blockchain is also increasing. In addition, that growth is something that DappRadar believes signals a healthier NFT space. It certainly helps that Axie Infinity, easily one of the most significant names in the NFT space, lives on the Ronin blockchain.
In fact, Axie actually became the first NFT collection to pass the $4 billion in all-time sales. The Avalanche blockchain has also seen a 25% rise in NFT volume over the month. By the same token, it grew a staggering 1,320% since last year.
Users of DappRadar PRO can check out the full February Industry Report here.
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