Business

US crypto acceptance remains high despite global inflation fears

A quantitative analysis report published by DappRadar has unveiled a number of insightful behavioral market indicators for digital asset adoption across the globe.

The blockchain data shows positive sentiment for the Web3 and Metaverse sectors, particularly in the United States, a reactionary surge in crypto interest across Ukraine and Russia following the outbreak of the conflict, and the well-documented rise in gas prices across Europe affects inflation indicators.

Bar chart statistics showed a high correlation between adverse economic dynamics in times of currency deflation and interest in engaging in cryptocurrencies – the data suggests the latter could act as an investment hedge.

The turbulent 217.65% deflation of the Brazilian real (BRL) against the US dollar over the past decade is said to have been a factor in the 45% of respondents saying they would consider buying a digital asset in the coming year draw. Similarly, India saw a 40% surge in crypto interest rates following a 58.58% deflation in its home currency, the rupee (INR).

In the “Countries with the Highest Social Media Indicators for Web3 Metaverse” category, the United States ranked highest with a score of 2.2, followed by Indonesia and India with 1.4 and 0.6, respectively. The United Kingdom came in seventh with 0.3.

blank

Many of the leading Metaverse platforms such as Decentraland, The Sandbox, Somnium Space, and Roblox have attracted a large portion of their user base from the US

“Fashion giants like Gucci, Dolce and Burberry have launched NFT collectibles, while Nike and Adidas have partnered with leading Web3 brands. HSBC and JP Morgan will open virtual booths in The Sandbox and Decentraland.”

Despite the growth in total value locked (TVL) in the decentralized finance (DeFi) market to just under $200 billion at the time of writing, transaction volume has been steadily declining since it peaked in mid-January.

Similarly, the report noted that “industry TVL is recovering behind the rise of holistic and fast ecosystems in Terra, Solana, and Avalanche.”

Related: DappRadar moves business model to DApp Store with native token

A key indicator of this growth is the number of developers moving to the network. As the chart below shows, Terra saw 313% annual growth, while Solana and NEAR saw inflows of 307% and 291%, respectively.

blank