Crypto liquidity crunch strengthens case for self-custody, says DappRadar report

Rick Steves

The report also highlights ongoing security concerns after over $676 million worth of crypto assets lost to hackers in Q2 2022. 

DappRadar has published its Q2 Dapp Industry Report, shining a spotlight on how the dapp industry has felt the brunt of a widespread turmoil in the cryptocurrency market.

The dapp store’s report argues that “NFTs and GameFi are a silver lining for the future of dapps amid the doom and gloom of an emerging crypto winter”.

DappRadar also explains how the liquidity crunch strengthens the case for self-custody of crypto assets, how the collapse of Terra altered the blockchain landscape, and how to tackle hacking following over $676 million worth of crypto assets lost to hackers in Q2 2022.

NFT and GameFi show resilience

The number of daily Unique Active Wallets (UAW) that interact with blockchain dapps fell to just 1.78 million on average in July, the first time it failed to surpass the 2 million milestone in any month since September 2021.

Overall, 2.11 million UAW connected to blockchain dapps in Q2, down 11% from the previous quarter. On the bright side, that’s still up 62% from a year earlier.

The harsh crypto winter has chilled dapp activity, but despite the doom and gloom, the report found a number of reasons to remain optimistic about the dapp industry overall.

“Notably, while Ethereum NFT trading volumes were down 40% from the preceding quarter, sales count over the same period rose by 2%, indicating that demand for digital assets has increased over the period. Some of Ethereum’s rival blockchains were also bright spots. For example, Solana NFT trade value bucked the trend, doubling from the first quarter, while trading volume jumped 23%”, DappRadar stated.

In fact, the market capitalization of Ethereum’s top 100 NFT collections surpassed 6 million ETH for the first time, growing 7% as ETH’s price in U.S. dollars fell 72% during the quarter.

DappRadar also noted the resilience of the blockchain gaming industry as a positive takeaway from the report, with only a slight 5% quarterly decrease in UAW compared to a 26% UAW drop in the overall dapp industry.

How liquidity crunch strengthens case for self-custody

The crypto winter this year saw the price of most cryptocurrency assets fall by 70% or more from their all-time high values. The collapse of the Terra ecosystem was a major contributor to the market plunge and exposed a few remaining vulnerabilities in the space.

The report offers insights into how the collapse of Terra altered the blockchain landscape, causing the crypto industry to lose 34% of its value and fall below $1 trillion in total value locked for the first time since January 2021.

The bearish market led to serious liquidity issues for some of the leading platforms in the CeFi space, including BlockFi, Celsius, Voyager, as well as VC firm Three Arrows Capital (3AC).

The report takes a look at the problems created by the liquidity crunch and how this strengthens the case for self-custody of crypto assets. It also highlights ongoing security concerns after over $676 million worth of crypto assets lost to hackers in Q2 2022.

Read this next

Institutional FX

Binance delivers pricing and trading over MT4/5 with oneZero integration

Binance’s VIP & Institutional unit today announced a partnership with oneZero Financial Systems, a global multi-asset class software and infrastructure provider for institutional and retail brokers.

Institutional FX

BNY Mellon to leverage Baton System’s CCP network on its ECPO service

“The union of Baton’s extensive CCP connectivity with the ground-breaking functionality of BNY Mellon’s ECPO service forms a powerful offering to cleared derivatives market participants.”

Institutional FX

NYSE and Tel Aviv Stock Exchange to promote dual listings

“This major step is intended to foster collaborations between the two exchanges and to encourage the dual listing of Israeli companies in their home market and on the NYSE.”


TT’s KRM22 selected as risk technology partner of Chicago-based RCM

“Broad product coverage and effective risk analytics performance are essential to proper implementation of risk management and risk analysis.”

Industry News

DXtrade FX/ CFD Platform Integrated with Your Bourse for Turnkey Liquidity

DXtrade brokers received access to 30+ major banks and Tier 2 liquidity providers with Your Bourse.

Executive Moves

Wave hires Harumi Urata-Thompson as CFO of SEC-regulated crypto investment company

“With extensive experience leading teams across both the traditional finance and digital asset sectors, Harumi is well-equipped to provide our team with the immediate strategic insights needed to optimize our financial operations. She is a fantastic addition to our team as we continue to strengthen our position as one of the leading digital asset managers and to deliver sophisticated financial services to our clients.”

Retail FX enters United States as brokerage obtains license from FINRA

“We intend to be fully operational as a brokerage house in the U.S. by the end of H1 2023 and look forward to forging long term relationships with new business partners and clients.”


Pico launches Corvil Cloud Analytics as trading industry moves into cloud

“Since Corvil Cloud Analytics is software only, this accelerates our deployments and also provides an expedited avenue for proof-of-concept use cases. It’s now easier than ever for clients to access the platform so they can see firsthand what makes Corvil an industry leader in data analytics.”

Executive Moves

Finalto recruits Antony Parsons as head of liquidity

Finalto, the financial trading division of Gopher Investments, is making a broader push into the liquidity provision space, culminating in a new appointment focused on expanding the business into new markets.