NFT & DeFi are Supporting the 2022 Crypto Market. Here’s How. 

date_range April 14, 2022
person Magic Square

In the first quarter of 2022, the crypto world experienced a brief bear market, and despite this, the overall number of active crypto wallets is on the rise. More and more people are using dApps! According to DappRadar, the number of daily dApp users has increased by 396% percent over the past six months! 

This demonstrates the crypto market’s resilience in the face of the worst financial shock since the 2008 Global Financial Crisis.

Starting out the year with an NFT boom

The trend for 2022 appears to be selling and buying fractionalized NFTs of real-world art by well-known painters. Since the advent of fractionalized NFTs, investors can now invest in valuable crypto assets at a fraction of the cost.

Twitter announced in January 2022 that users could use NFTs as their profile pictures, and Meta jumped on board almost immediately. Social media companies are now working hard to develop a badge that distinguishes uploaded photos from NFTs.

This implies increased adoption and a rising trend of NFTs by massively increasing the number of wallets around the world. It also resulted in the creation of exclusive social clubs and communities centered around the ownership of an NFT from a particular collection.

Gobardhan Ash, a well-known digital artist, held India’s first-ever NFT auction in February 2022, and a large number of investors began to take a closer look at this $50 billion annual opportunity. Furthermore, music and film are two of the industries that are most likely to benefit from the influence of NFTs, which have created a whole new channel for marketing and crowdfunding film and television projects.

As a result of all of these trends, the number of unique active wallets interacting with dApps has been on an upward tick for the first couple of months of 2022.  Despite headwinds, and given the financial troubles from COVID and inflation, this growth is more than impressive.

2022 and high-potential DeFi projects

According to projections, DeFi growth could exceed $250 billion by the end of 2022. By rebuilding the entire financial system on decentralized blockchains, DeFi is rewriting the financial services rulebook.

The DeFi world is evolving, and one example is Magic Square, which is about to launch its disruptive Beta-Version of the First Community-Driven Crypto App Store.

The Magic Store is a one-of-a-kind integrated solution in which interoperability is the starting point for a simpler, more secure, user and developer-friendly DeFi experience.

Magic Store is giving the crypto community access to a wide range of community-vetted dApps, DeFi, NFT collections, metaverse applications, exchanges, AMMs, and more all stored and managed in one ultimate location. Magic Square is preparing to launch its Beta version, for which a waiting list has already been established and is open for sign-ups. To emphasize the significance of this event, the Magic Square team planned to distribute prizes worth up to $250,000 among its participants.

High-potential projects like this have the potential to drastically change the DeFi sector and the crypto world in general.

Final Thoughts

Market volatility will have its downs, but other statistics tell more about the reality of the market. We’ve looked at NFTs and DeFi in terms of their evolution and growth: the number of wallets and users, new utilities, and breakthrough projects, to explain why we think the year of 2022 is going to be a bright one for crypto.

Check this out to learn more about the latest DeFi trends, and be sure to follow us on social media for all of the latest ecosystem updates.