Does Web3 Have What it Takes?

GM. Even though Web3 hasn’t been around very long, it’s showing that it has what it takes to stick around. The market has done more than $1 trillion in volume and shows no signs of slowing down. Come join us as we dig a little deeper into the world of Defi, NFTs, and DAOs.

Today's Topics:

• Where are We With Web3?

• Is Blockchain Gaming Shifting?

• Nexo Expanding

• Quick Links

Where are We With Web3?

Chainalysis recently released its State of Web3 report, which gives a detailed look at what’s going on with Web3. If you don’t have time to read the 109-page report, we’ll give you a high-level overview. And if you’re looking for something that’s in between the two, you can check out Joel’s post over at Decentralised.co.

There’s a lot to like about what’s going on with Web3. For starters, it looks like NFTs and gaming are making a significant dent in the retail sector. NFTs alone have done more than $100 billion (with a B) in volume. Of course, a large part of that volume comes in the form of high-priced NFTs like Bored Apes. Still, $100B is nothing to sneeze at.

Speaking of NFTs, these unique and exciting tokens are all the rage in the Web3 market.

Currently, there are roughly 750k NFT users across a variety of platforms. What’s crazy is that according to the Chainalysis report, the number of NFT buyers and sellers is nearly 20x the amount this same time in 2021. That makes for a pretty good year for NFTs.

Of course, not everything is candy canes and lollipops in the Web3 world. For example, when we talk about decentralized exchanges (DEXs), the top five in the market manage roughly 85% of the volume.

Similarly, Compound (COMP) and Aave (AAVE) currently oversee nearly 90% of all lending in the Defi market. For an industry that touts decentralization, those two niches are anything but.

Overall, Web3 is looking strong for 2022 and beyond. Sure, there are areas for improvement, but that’s true for any crypto-related market at this time.

So strap in, put your helmet on, and hold on tight. This ride is far from over.

Is Blockchain Gaming Shifting?

A lot has happened in the blockchain gaming market over the past year. For starters, there has been a massive influx of capital. Nearly $8 billion has been invested in gaming startups in the blockchain sector.

With this infusion of capital comes an influx of talent. As Web3 and blockchain games garner more attention, they become appealing places to work. As a result, talented individuals are starting to take their skills to a market that many now label as ‘cutting edge.’

However, if we shrink our purview to the past few months, things aren’t quite as rosy. With a bear market comes more cautious investors who want to perform their due diligence before handing out a sizeable check.

While some see this market drawback as a negative for blockchain gaming, we see it as an opportunity. “Play-to-earn” games that many view as gamified Ponzi schemes will become rare as developers will focus on creating amazing games the users want to play.

In our book, that’s a win for blockchain gaming.

Nexo Expanding

Speaking of the bear market, it appears as though another exchange may soon be closing its doors. Singapore-based exchange Vauld has signed a term sheet with Nexo, which gives the company 60 days to perform due diligence as it relates to a potential acquisition.

As long as things go as expected, Nexo fully intends to buy out Vauld and use the firm’s operations to expand its footprint in Asia. This announcement comes just a few days after Vauld announced that it was freezing withdrawals - an obvious sign of financial trouble.

Vauld is another domino to fall as blockchain companies face hardship during the current economic downturn. Terra, Celsius, and Three Arrows are just a few other companies that have faced difficulties. Clearly, Nexo expects to navigate through the bear market and come out even better on the other side.

Quick Headlines

Nothing new to report - The US Fed keeps the status quo when it comes to developing a central bank digital currency.

No BitMex for You - In an effort to comply with European sanctions against Russia, Russian citizens and residents will no longer have access to the platform beginning July 11th.

Defi for Newbies - Here’s a list of five of the best Defi marketplaces if you’re just getting started.

Say what? - Check out this Decrypt article and podcast with “Bitcoin Senator” Cynthia Lummis as she discusses the Responsible Financial Innovation Act.

Show your support - Want to tell your US representative that you support the current crypto bill? Here’s how.

Closing fast - Circle’s USDC continues to gain ground on Tether’s USDT as the preeminent stablecoin in the industry.

BTC Dump - Top crypto mining company Core Scientific unloads Bitcoin to purchase hardware and pay off debt.

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Disclosure: We are a newsletter for information only. We are not financial advisors nor do we claim to be. Consult your legal, investment or tax advisor. Crypto is risky. Do you own research.