NFT sales topped 101 million in 2022: DappRadar report

January 20, 2023 Coin Telegraph

A recent report from DappRadar revealed that over the last year, NFT and gaming-centered decentralized applications rivaled DeFi DApps on many major blockchains.

Over the last year, nonfungible tokens (NFTs) continued to play an important role in the growing Web3 industry. NFTs initiated a shift away from hype-based drops, to utility-centric projects with long-term value.

A new DappRadar report on blockchain and decentralized application (DApp) adoption in 2022 revealed that the NFT sale count last year reached 101 million. This is a 67.57% increase from the previous year.

According to the report, the Ethereum ecosystem holds the top spot in the NFT ecosystem, holding 21% of the market share and over 21.2 million transactions processed. It is followed by Wax (14.5 million), Polygon (13.3 million) and Solana (12.9 million).

Both the Solana and Immutable X ecosystems saw massive growth from the previous year in terms of transaction activity, with a 440% and 315% increase, respectively.

Meanwhile, the data shows no change in the BNB ecosystem, with roughly 1 million transactions for both 2021 and 2022.

The dominant category of DApps on various chains has also shifted in the last year. In 2021 decentralized finance (DeFi) apps were dominant on all but 2 of the 13 chains used in the report.

This year, however, a major shift towards high-risk, gaming and NFT DApps leveled out the playing field.

Additionally, the report highlighted Ethereum and Cardano as the blockchains with the most active developers working on-chain, with 223 and 151 active protocols, respectively.

While modular blockchains, such as Polkadot and Cosmos, saw their network developer activity grow by 16% and 131.7%.

The importance of NFTs in the Web3 space also translated over into mainstream culture in the last year. From continued adoption by legacy institutions like the NBA to Amazon making a documentary series about NFTs and those who collect them.

At the end of the year last year, China announced its first national NFT marketplace to serve as a secondary market for the exchange of digital assets.

Layer-1 EVM oracle platform Flare launches to boost interoperable DApps

January 10, 2023 Coin Telegraph

Blockchain

Layer 1 EVM blockchain Flare goes online, aimed at providing developers a platform to build decentralized interoperability applications.

Flare, a new layer-1 Ethereum Virtual Machine blockchain platform, has gone live with the launch of two core protocols aimed at powering decentralized interoperability applications.

The platform serves as an oracle network that allows developers to build applications that are aimed at being interoperable with different blockchains and internet platforms and services.

Flare features two protocols that power its application-building suite. Its State Connector protocol enables information and data to be used securely and at scale from various blockchains and internet sources with the use of smart contracts. The functionality is touted to offer powerful data to the network and facilitate the development of cross-chain solutions.

Meanwhile, the Flare Time Series Oracle (FTSO) sources and provides decentralized price and data feeds to decentralized applications (DApps) running on the layer-1 blockchain platform. According to Flare’s technical documentation, the FTSO smart contract provides continuous estimates for different types of data.

Independent providers retrieve data from external sources like centralized and decentralized exchanges and supply that data to the FTSO system. The information is weighted according to each provider's voting power, and a median is calculated to produce the final estimate.

This operates as an incentive system for data providers, which are rewarded for supplying price pairs and other information that are close to the median value from various sources.

The protocol’s two networks, Songbird and Flare, run Ethereum Virtual Machine which allows Ethereum contracts and tools to be used in the development of smart contracts and applications. However these layer 1 networks run independently of the Ethereum mainnet.

Details of the platform launch shared with Cointelegraph highlight the importance of providing secure access to data. Flare CEO & co-founder Hugo Philion believes the two protocols can lead to new use cases for blockchain technology, such as triggering a Flare smart contract with a payment made on another chain or by input from a conventional website.

“It also facilitates a new way of bridging, specifically to bring non-smart contract tokens to Flare for use in applications like DeFi protocols.”

Flare initiated its token airdrop on Jan. 9, with 4.27 billion FLR tokens distributed to millions of users across various cryptocurrency exchanges. The airdrop itself marked a unique milestone, as developers can now start using Flare’s EVM and data acquisition protocols.

The initial token distribution released 15 percent of the full public token allocation, with the remainder set to be released monthly over 36 months. The allocation method for the remaining token supply will be settled by a community vote through the Flare Improvement Proposal 01 (FIP.01).

5 altcoin projects that made a real difference in 2022

December 27, 2022 Coin Telegraph

Coin Telegraph

2022 was tough on crypto prices, but ETH, LDO, MATIC, DAI and ATOM all made a positive impact on the industry.

Bitcoin (BTC), Ether (ETH) and the crypto market had a rough 2022 from a price perspective, but traders are hopeful that 2023 will include bullish developments that push crypto prices higher.

Despite the market-wide downturn, a handful of altcoins continued to make a positive contribution to the crypto space and thanks to Ethereum, the term altcoin is no longer a derogatory term.

Let’s explore the top altcoins that made a difference in 2022.

Ethereum fundamentals shone in 2022

Ether’s price hit a yearly high at $3,835 on Jan. 2 and has struggled to regain footing amidst the bear market and other macro factors. The Ethereum network is the top project in 2022 not because of Ether’s price action, but for its fundamentals and for completing the long-awaited mainnet upgrade. The Ethereum merge was completed on Sept. 15, 2022 and while many feared the merge to proof-of-stake (PoS) could cause issues, the transition was flawless.

The main advantage of PoS is that it is much more energy-efficient than proof-of-work (PoW) because it does not require expensive and energy-intensive hardware to validate transactions. This reduces usage costs for the end user and makes it a more sustainable and scalable solution for Ethereum's long-term growth. The Merge also reduced the Ethereum network’s energy consumption by over 99.9%.

Some analysts are bullish on Ether post-Merge due to its emissions schedule becoming deflationary. Although daily active users have increased for the network, emissions have remained inflationary and Ether price is still down from yearly highs.

In 2023, investors are hopeful that increased transactions on the network creates higher demand for Ether and that this translates to a boost in the altcoin’s price.

Lido (LDO) brought Ethereum network staking to the masses

Lido’s makes it easy for users to participate in Ethereum PoS as validators by providing a simple interface for betting without having to reach the high threshold the network requires to stake.

Since launching, Lido has earned $158.8 million in fees from their staked Ether protocol. At the peak, Lido saw 823 daily active users on Sept. 17.

*Cumulative Lido fees and daily active users. Source: TokenTerminal*

With the Ethereum network Shanghai hard fork scheduled for March 2023, Lido will have a busy Q1 and all the Ether staked in the platform will have the option of being withdrawn. Aztec Connect, the creator of Lido protocol also recently secured a $100 million fundraising round to build an encrypted blockchain.

Polygon partnerships show long-term resiliency

Mass adoption requires traditional companies and brands to get involved in crypto. Polygon (MATIC) has a major focus on partnerships and some of the relationships developed in 2022 include Warner Music, JP Morgan, Instagram and Warren Buffett’s Neobank.

These partners use Polygon in various ways, including integrating the Polygon network into their infrastructure and using Polygon to offer distributed ledger technology (DLT) for their products and services.

Notable companies, including Cointelegraph, also chose to launch NFTs on Polygon. In addition to Cointelegraph, former President Donald Trump, Reddit, DJ Deadmau5 and Nike all launched NFT collections on Polygon.

Some traders expect a 200% upside swing from MATIC due to on-chain metrics showing traction and bevy of future partnerships. Despite all of Polygon’s growth, the Ethereum network still intakes more fees.

*Daily fees comparing Polygon (Orange) and Ethereum (Green). Source: TokenTerminal*

Polygon’s focus on Web3’s core principles combined with their partnerships, earned them a spot as a top altcoin project in 2022 .

MakerDAO’s DAI proves resilient

In a year that saw algorithmic stablecoins de-peg and perish, Dai (DAI) has shown resilience. Unlike centralized stablecoins, DAI is a decentralized stablecoin that provides transparency, censorship resistance, and the ability to operate outside traditional financial systems.

While DAI is not new to the crypto space, the decision to increase exposure in low-risk assets such as treasuries and bonds earns them a spot as a top altcoin. According to an analysis from Sebastien Derivaux, a crypto scholar, this decision generated 75% of all DAI revenues (600 million.)

Cosmos upgrades attract institutional investors’ attention

In 2022, Cosmos (ATOM) focused on solving the interoperability and communication challenges that exist between different blockchains. On Jan. 1, Cosmos had 74 active developers and this figure more than doubled, reaching a peak of 154 on Nov. 30.

In a year plagued with cross-chain casualties, Cosmos’ inter-blockchain communications protocol (IBC) has so far seemingly weathered the storm. The success caught the eye of Delphi Digital’s research arm and fund managers at VanEck.

*Cosmos fees and developer activity. Source: TokenTerminal*

Overall, Cosmos has the potential to be an important infrastructure layer for the crypto ecosystem, helping to facilitate the exchange of value and information between different blockchain networks and enabling a more interoperable future.

While 2022 is a year most crypto investors would like to forget, positive factors in mass adoption arose. The altcoins with a focus on building will continue to propel crypto’s future in 2023 and beyond.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

New oracle system to help DApps retrieve millions lost to MEV

November 3, 2022 Coin Telegraph

Coin Telegraph

OEV-enabled oracles auction off the right to extract on-chain value to the same third-party searchers who used to bid for the blockspace.

A new oracle system aims to retrieve the additional fees paid by decentralized application (DApp) users to miners called maximal extractable value (MEV). It is the maximum value a miner can extract from moving-around transactions when producing a block on a blockchain network.

MEV can be defined as the maximum value that can be extracted from block production in excess of the standard block reward and gas fees. The MEV comprises arbitrage and liquidation fees, among others, that could amount to millions and are often extracted by block producers.

A new oracle system called oracle extractable value (OEV) promises to change that and return the extra revenue back to the DApp instead of third parties and block producers. Web3 decentralized oracle service provider API3 has come up with the concept of OEV that promises to offer an additional revenue source for decentralized finance (DeFi) protocols.

The traditional way of extracting MEV is participating in blockspace auctions, which were often done by third parties and block producers, but OEV-enabled oracles take auctions off-chain and auction the right to extract on-chain value to the same third-party searchers who used to bid for the blockspace.

Talking about the working of the OEV oracles and how It would help the DeFi ecosystem, Burak Benligiray, core technical team lead at API3, told Cointelegraph:

"OEV auctions will happen off-chain, which means even when there is a lot of value being extracted, gas prices will not be affected. Furthermore, proceeds of block space auctions are claimed by block validators, while OEV proceeds can be redirected to the dApps that create them."

Data from flashbots suggests that block producers have captured nearly $653 million in MEV. Flashbots is a centralized entity dedicated to transparent and efficient MEV extraction.

OEV-enabled data feeds then return the proceeds of these auctions to the DApps that generate the value in the first place. The OEV-enabled data feeds not only help in retrieving the MEV but also minimize it by updating precisely when needed, achieving a zero deviation threshold.

OEV oracle services are available on numerous Ethereum virtual machine (EVM)-compatible networks, including Ethereum, Polygon, Arbitrum, Optimism, BNB Chain, Avalanche, Milkomeda, Fantom and many more.

BNB Chain to boost European Web3 startups with DApp incubator program

October 10, 2022 Coin Telegraph

Binance

The incubator program focuses on EU-based startups building the next generation of Web3 consumer experiences with an emphasis on accessibility and scalability.

BNB Chain, the blockchain of the Binance crypto exchange and BNB, launched its latest development-focused initiative, which targets European developers building and scaling decentralized applications (DApps) on the network.

The three-week virtual “innovation incubator” program focuses on Web3 startups with at least one key member based in the European Union (EU). Those accepted into the program receive mentorship from industry experts and BNB Chain specialists on tokenomics design and Web3 marketing strategies.

The incubator will host exclusive meet-ups in cities across the continent, such as Lisbon, Paris, Berlin, Barcelona, Warsaw and London.

According to Zoe Wei, senior business director at BNB Chain, the network is looking to support European Web3 startups that consider both accessibility and scalability in pushing for greater adoption.

“Our objective is to guide European builders in making early commitments to these fundamentals in order to grow large user bases in the long term.”

There are at least 17 organizations with a regional presence participating in the incubator to support the builders. Among those is Jump Crypto, which claims that sharing knowledge within the community will support the next generation of DApps.

A Jump Crypto spokesperson said:

“Crypto is a community, and we believe that knowledge sharing and collaboration fosters a stronger, more resilient, and more advanced crypto ecosystem overall.”

Participants also get on-chain incentives, such as a one-month 100% gas fee incentive and a “strong referral” to BNB Chain’s already existent Most Valuable Builder program.

Developers can apply from Oct. 10 to 23, with the three-week incubation period from Nov. 21 to Dec. 15.

The European incubator is BNB Chain’s latest initiative for developer support and Web3 education. Recently, the network announced a major collaboration with Google Cloud to give participants in the ecosystem access to Google Cloud service to help with on-chain development.

BNB Chain also partnered with a Latin American educational platform in August to develop a Web3 and blockchain course for thousands of students in the region.

This latest announcement comes after the network suffered from a multimillion-dollar cross-chain exploit on Oct. 6.

The network briefly suspended all deposits and withdrawals on the network until validators confirmed their statuses — and was back online in a matter of hours.

Binance Offering XRP Rewards to Traders – Here’s How to Get the Free Crypto

August 24, 2022 The Daily Hodl

A sharp drop in TVL and DApp use preceded Avalanche’s (AVAX) 16% correction

August 18, 2022 Coin Telegraph

Altcoin Watch

AVAX price gave up recent gains after correcting by 16% and the network’s declining TVL and DApp use suggest that the protocol is losing ground versus its competitors.

After an impressive 73% rally between July 13 and Aug. 13, Avalanche (AVAX) has faced a 16% rejection from the $30.30 resistance level. Some analysts will try to pin the correction as a "technical adjustment," but the network’s deposits and decentralized applications reflect worsening conditions.

*Avalanche (AVAX) index, USD. Source: TradingView*

To date, Avalanche remains 83% below its November 2021 all-time high at $148. More data than technical analysis can be analyzed to explain the 16% price drop, so let’s take a look at the network’s use in terms of deposits and users.

The decentralized application (DApp) platform is still a top-15 contender with a $7.2 billion market capitalization. Meanwhile, Solana (SOL), another proof-of-work (PoW) layer-1 platform, holds a $14.2 billion market cap, which is nearly twice as large as Avalanche's.

Avalanche’s TVL dropped 40% in two months

Some analysts tend to give too much weight to the total value locked (TVL) metic and although this might hold relevance for the decentralized finance (DeFi) industry, it is seldom required for nonfungible token (NFT) minting, digital item marketplaces, crypto games, gambling and social applications.

Using the layer-2 solution Polygon (MATIC) as a proxy, it currently holds a $2.2 billion TVL while MATIC’s market cap stands at $7.2 billion; thus, a 3.3x MCap/TVL ratio. Curiously, the same ratio applies to Avalanche, which currently holds a similar $2.2 billion TVL and $7.2 billion capitalization.

*Avalanche Total Value Locked, AVAX. Source: DefiLlama*

Avalanche's primary DApp metric began to display weakness in late July after the TVL dropped below 110 million AVAX. In two months, the current 85.4 million is a sharp 40% cut and signals that investors have been withdrawing coins from the network's smart contract applications.

The chart above shows how Avalanche's smart contracts deposits peaked at 175 million AVAX on June 13, followed by a constant decline. In dollar terms, the current $2.2 billion TVL is the lowest number since September 2021. This number represents 8.2% of the aggregate TVL (excluding Ethereum), according to data from DefiLlama.

Initially, the data seems disappointing, especially considering Solana’s network TVL reduced by 27% in the same period in SOL terms, and Ethereum’s TVL declined by 33% in ETH deposits.

DApp use has also underperformed competing chains

To confirm whether the TVL drop in Avalanche is troublesome, one should analyze a few DApp usage metrics.

*Avalanche DApps 30-day on-chain data. Source: DappRadar*

As shown by DappRadar, on Aug. 18, the number of Avalanche network addresses interacting with decentralized applications declined by 5% versus the previous month. In comparison, Ethereum posted a 4% increase and Polygon users gained 10%.

Avalanche's TVL has been hit the hardest compared to similar smart contract platforms and the number of active addresses interacting with most DApps only surpassed 20,000 in one case. This data should be a warning signal for investors betting on this automated blockchain execution solution.

Polygon, on the other hand, racked up 12 decentralized applications with 20,000 or mo active addresses in the same time period. The findings above suggest that Avalanche is losing ground versus competing chains and this adds further reason for the recent 16% sell-off.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Astar Network and Acala Announce Partnership in a Major Boost to DeFi on Polkadot

August 10, 2022 The Crypto Briefing

Cardano Vasil Hard Fork Postponed to Allow for More Testing

June 23, 2022 Bitcoin.com

GameFi continues to grow despite crypto winter: DappRadar report

June 21, 2022 Coin Telegraph

Blockchain Game

The report seems to show that turbulence in the crypto markets has failed to rattle investments and forward movement of several GameFi and metaverse projects.

Blockchain games were the subject of the latest DappRadar x BGA Games Report #5, published on Tuesday. The report looked at healthy ecosystems and investments coming into the GameFi and metaverse markets.

Several projects were covered in detail in the report, which outlined their continued success and growth. Splinterlands, Illuvium, Galaverse and STEPN have continued to bring new players to their platforms, gain financial interest and expand their businesses.

DappRadar claimed that a common theme between many of these popular projects was the underlying utility provided by the gaming aspect, itself. GameFi and Metaverse projects have begun to utilize nonfungible tokens (NFTs) and crypto tokens in ways other than pure speculation — one example being the NFT shoes in the STEPN move-to-earn (M2E) project, which can be bought and sold in the STEPN metaverse, potentially offering some incentive in addition to the exercise aspects of the game.

The report indicates that gameplay, itself, has, at least partially, demonstrated utility in the context of the Metaverse in Q2 2022. As Bitcoin was declining in early June, the blockchain game Illuvium sold 20,000 land plots, generating 4,018 Ether (ETH) for its developers, worth $72 million at the time the sale took place. The report suggested that Splinterlands has held 350,000 daily unique active wallets (UAW) since May, showing a slight 4% decline from April.

Investments have continued to roll into the space as well. A16z and Dapper Labs invested $1.3B into GameFI and metaverse technologies, seeming to indicate continued venture capital interest and support. Decentralized blockchain Flow also received a $725 million investment from Dapper Labs to support its metaverse related initiatives such as NBA Top Shots.

Metaverse-related technologies still appear to be in an incubation period and likely have a long road ahead. Interoperability issues, security concerns , legal clarity, uses and misuses , market instability and poor market sentiment all continue to be major hurdles for the young technology.

DAPP