A new DappRadar report has revealed that despite the rising inflation fears and the political crisis that plagued the world in the first quarter of this year, crypto adoption remains high as Russia and Ukraine lead the table despite their warring status.
The report pointed out that the crypto industry also witnessed a massive adoption in the United States largely due to the fears of inflation which is at a record high.
Per the report, crypto adoption in these countries has risen, although Bitcoin and other digital assets remain highly volatile, it pointed out that this asset class, in recent times, have become highly correlated with the stock markets thereby leading to them being a viable investment vehicle and hedge against inflation.
DappRadar revealed that while the adoption has remained high across various geo-political zones in the world, the industry would still face some challenges before it becomes widely adopted across the world.
According to the report, the constant theft and hacks within the space, alongside the potential of Russia using the space to bypass economic sanctions, will attract more regulatory scrutiny as time goes by.
DeFi Activity hit by Global Economic Behavior
The DappRadar report revealed that DeFi activities appear to be the most affected amongst crypto main categories as the space has seen its transaction volume hit the lowest in the first quarter of this year.
However, regardless of this dropped figure, it is noted that the rise of ecosystems of crypto assets like that of Terra, Solana, and others is playing a role in the recovery of its TVL to its previous highs.
NFTs, on the other hand, has been able to buck the trend. The report noted that while the “NFT market has seen its organic trading volumes shrink from January’s record, the number of trades and transactions involving NFTs reached an all-time high in Q1.”
The report concluded that NFTs and DeFi remain critical sectors that would play a major role in the evolution and adoption of the crypto space.
Also, the report highlighted the rising interest in metaverse by fashion brands like Gucci, Dolce, Nike, Burberry, and Adidas. It noted that some of the biggest companies in the world have equally made their intentions clear about the metaverse.