According to a new industry analysis issued by DappRadar, the number of people participating in decentralized applications, or DApps, on a daily basis increased 396 percent year over year to 2.4 million. This is only 5.8 percent lower than the same level of user activity seen in Q4 2021.
The overall gain was outstanding, given that the cryptocurrency sector saw a brief bear market during the quarter, as well as $1.19 billion in decentralized finance, or DeFi, hacks, and vulnerabilities.
Ronin and Wormhole token bridge protocols were two of the most severely impacted. An attacker utilized compromised private keys to generate fraudulent withdrawals on Axie Infinity’s Ronin bridge last month, resulting in a $600 million loss. Meanwhile, the Wormhole protocol lost $321 million in February due to a minting vulnerability. Jump Crypto, a venture capital business, went into its own wallets and refilled the missing monies in a courageous move.
Furthermore, DappRadar’s crew wrote:
“The first quarter of 2022 had its ups and downs, but it was marred by the Ukraine war. This was one of the most significant occurrences since the 2008 Global Financial Crisis, which rattled global markets and harmed the sector.”
In the first quarter of 2022, gaming DApps accounted for more than half of all user activity. Simultaneously, despite concerns of a bubble, nonfungible tokens, or NFTs, generated $12 billion in trading. In terms of total DeFi value locked, Ethereum (ETH) led the pack once again with $127 billion, followed by Terra Luna (LUNA) at $29 billion and BNB Chain at $13 billion.