In the last three months, the crypto industry has changed a lot and recovered from the massive Terra Luna crash.
In May 2022, the Luna cryptocurrency and the Terra ecosystem crashed: about $ 50 billion disappeared from the crypto market. The crash triggered a domino effect that led to the collapse of large companies such as Three Arrows Capital, BlockFi and Celsius.
A strong crypto winter followed, during which the crypto market capitalization fell to below $1 trillion and numerous crypto exchanges stopped withdrawals.
Data from DappRadar show that the DeFi area was the most affected by the collapse. The Total Value Locked (TVL) of all blockchain dropped since May 2022 an average of 68 %. Crypto hacks caused even much stronger TVL declines in some cases during the same period.
Regulations follow after the Terra Luna crash
Experts have already warned of an imminent wave of regulation that could hit the industry both in the US and in the European market. In both areas are several draft laws on the regulation of stablecoins under discussionto prevent a repeat of the events in May.
The Financial Stability Board (FSB), for example, wants to promote internationally coordinated regulations. The organization will present a comprehensive regulatory proposal to the G20 countries in October.
Authorities are also stepping up their efforts to bring the crypto industry under control, especially the Securities and Exchanges Commission (SEC). The SEC will double the number of employees for crypto regulation this year.
The development activities in the field of blockchain have also declined sharply. According to DappRadar, the number of new decentralized applications (dApps) released across all chains in the months following the collapse of Terra is decreased by as much as 35%.
TerraCrash: A picture of BeInCrypto.com
Blockchain Gaming: The Biggest Winner
The field of blockchain gaming seems to have been spared from the collapse of the Terra ecosystem. There has been a strong increase in consumer activity in this area. The transactions with non-fungible gaming tokens (NFTs) defied the current market trend with an increase of 19% compared to the previous year, while at the same time capital from institutional investors flowed in.
The Solana and WAX blockchains saw a significant increase in gaming activity, as DappRadar reported. Splinterland, Farmers World and Alien Worlds were in the lead after these games recorded minimal losses in in-game activity.
In addition, DappRadar examined how much the different nations are interested in cryptocurrencies. The US still remains the leader, while India and Russia took the second and third places.
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