Blockchain Games Raise $2.5B As Dapps Lose $1.2B to Hacks in Q1 ’22

According to the research, approximately $12 billion in NFT transactions were done in Q1 2022.

Over the same time span, DeFi technologies have lost more than $1.2 billion.

Venture capitalists have invested $2.5 billion in gaming businesses, bringing the total value of GameFi TVL to $28 billion.

Bitcoin and altcoins are no longer the exclusive forms of cryptocurrency. With the emergence of the Metaverse, space has become a realm unto itself, both metaphorically and physically.

NFTs have become a need for investors, and gaming projects have gotten a lot of attention this time around as well. But how much is the question?

DeFi knocks it out of the park with this one.

The DeFi field is expanding, according to the DappRadar Q1 industry report, as the NFT and Metaverse markets gain traction and interest in blockchain gaming grows.

And the benefits of Decentralized Finance (DeFi) outweigh the risks posed by external causes.

Throughout the first quarter, Dapps together recorded over 2.38 million daily unique active wallets, and the DeFi TVL maintained its pace despite the variations.

The greatest winners this time were none other than NFTs, who earned more than $12 billion in transactions as a result of their acceptance outside of Ethereum.

Furthermore, the first quarter of 2022 was a banner year for blockchain gaming ventures. These Dapps were able to raise nearly $2.5 billion from venture capitalists and get the attention of investors.

But with every benefit comes a drawback, and the hacks are DeFi's biggest drawback. DeFi stands for decentralized finance, which means it is not reliant on anybody to keep it secure from direct access attacks or exploitation.

Those looking for a loophole, on the other hand, find a way to exploit a protocol, as DeFi protocols did in the first three months of 2022, losing over $1.2 billion.

Axie Infinity's Ronin Hack is responsible for around half of this damage, with exploiters taking over $615 million in the largest crypto assault ever. The Wormhole was the other big exploit, with $326 million taken.

However, it did not halt the growth of DeFi.

The total value locked (TVL) across all Decentralized Finance protocols and chains is now $214 billion, which, although significant, pales in contrast to the crypto space's $1.9 trillion market cap.

The fast developing GameFi market, which has piqued the eye of both users and investors, is now valued at over $28 billion and increasing, due to the advent of Metaverse and platforms like The Sandbox and Decentraland.

While a result, as DeFi is seen as the future of finance, these areas will see a lot more investment coming in in the future.