After becoming the hottest trend in fintech and crypto over the past few months, the NFT space appears to have transitioned into a cooldown phase. But this trend seems to be changing with the latest edition of the Dapp Industry Report by Dapp Radar suggesting that the market is coming back to life.
Moonbirds, Otherdid NFT Collections, Smash Records
As per the report shared with cryptopotato, it was the launch of two of the most anticipated collections of all time that revived an area that experienced a six-week cooldown. The first NFT project is Moonbridges, which broke a long list of records by generating almost $500 million in trades. As reported in the report, strong demand for pixelated owls propelled Moonbirds floor price rally beyond 30 ETH.
On the other hand, the recent Otherdeeds NFT drop managed to generate $760 million in just 24 hours. However, it was embroiled in controversy as high demand drove unprecedented Ethereum fees upwards, causing chaos for buyers. Bored Ape Yacht Club (BAYC), the creators of Era Labs, was criticized for failing to implement optimization checks prior to launch.
Dapp Radar also noted that the decline since the implementation of EIP-1559 pushed Ethereum’s burn rate to a record high. Furthermore, the mining process burned around 56,000 ETH, or about 70% of the assets burned in the past week. Market Tracker revealed that the much-anticipated Yuga Labs project has single-handedly turned Ethereum into a deflationary asset.
In addition to Ethereum-based collections, the demand for Solana-based NFTs also saw an increase. The report noted that collections such as DeGods and OK Bears managed to break into the top 30 most traded NFTs in April.
The two reportedly made sales of $44 million and $23 million respectively. One of the main driving forces for the increase in NFT activity on the Layer 1 blockchain protocol was the OpenSea integration which is expected to act as a catalyst in rapidly increasing the visibility of these digital collectibles.
Setting up Terra as a DeFi Juggernaut
The decentralized finance space has shrunk since the price drop of cryptocurrencies. Dapp Radar observed that this area is showing positive signs as TVL is declining at a lower rate than the underlying cryptocurrency. It was essentially a sign of room for growth. The Terra ecosystem is growing and trailing the major behemoth – Ethereum.
From its controversial move to buy $10 billion worth of BTC to collaborate with Avalanche, Terra Crypto continues to make headlines. In addition, less frequently used networks such as Cronos, Aurora and Near are slowly starting to gain traction as downward pressure continues to affect DeFi. The report further stated,
Terra’s position as DeFi’s juggernaut and the rise of networks such as Avalanche, Cronos and Near, among solid options for lending, borrowing and passive yield earning, bolster a bullish outlook for the still entirely relevant dapp category. portrays.
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