Under the heavy pressure of industry regulation, the market share trend of games, DeFi and NFT is at a glance

Author: Chayanika Deka, CryptoPotato; Compiler: Songxue, Jinse Finance

Regulatory heat in the cryptocurrency industry intensified in the last quarter. Bearing the brunt are several sectors, including DeFi and NFTs, which are in a disturbing state of affairs. On the other hand, the blockchain gaming industry seems to remain unchanged amidst the turmoil.

According to a DappRadar report, the **gaming category continues to dominate the market with a 37% share of the overall decentralized application (dApp) market. ** This figure is still lower than the previous quarter's 45% market share.

The data also showed that on-chain dApp daily unique active wallets (dUAW) increased by nearly 8% compared to Q1, which could be interpreted as an encouraging sign of market recovery. **

DappRadar noted: “Despite the prevailing regulatory turmoil, the digital asset market is still thriving, as reflected in the growth in active participation.”

As DeFi dominance surged from 23% to 32%, there was a modest resurgence in the form of memecoin hype and L2 airdrop hunters. However, the TVL of **DeFi protocols fell by more than 7% from the previous quarter to $77.6 billion. **

The report noted that the drop was unexpected and in stark contrast to the expected growth trajectory of the DeFi space.

While Ethereum continues to hold the lead, with a slight decline of 2% from the previous quarter, this is not the case for the other two leading blockchains - BNB and Polygon.

After the SEC lawsuit in early June, BNB’s TVL dropped by 19%, which was the largest drop of any blockchain observed, and **Polygon’s TVL decreased as a direct effect of the regulator’s attack 8%. **

**The NFT market was hit the hardest, with transaction volume down 38% to $2.9 billion in Q2. ** However, the report noted that the decline did not necessarily indicate weakening market interest or activity.