Despite global inflation concerns, U.S. cryptocurrency adoption remains high

A quantitative analysis report released by DappRadar reveals some illuminating market indicators of global digital asset adoption behavior. Blockchain data depicts positive sentiment in the Web3 and metaverse industries, especially in the United States; after the outbreak of the Russian-Ukrainian war in February, interest in cryptocurrencies in Ukraine and Russia has risen sharply. In addition, soaring gas prices across Europe are affecting inflation indicators, and European residents are facing difficulties such as lack of bread and oil.

Statistics show a high correlation between adverse economic dynamics during periods of monetary deflation and interest in participating in cryptocurrencies — data suggests that the latter can serve as an investment hedge.

According to reports, the Brazilian Real (BRL)’s 217.65% deflation against the US dollar over the past decade was an influencing factor for 45% of participants who are considering buying digital assets in the next year to ease deflationary pressures. Similarly, India’s fiat currency, the rupee (INR), saw a 40% increase in interest in cryptocurrencies after a 58.58% deflation. In the category titled “Countries with the highest Web3 Metaverse Social Media Indicators,” the United States ranked highest with a score of 2.2, followed by Indonesia and India with scores of 1.4 and 0.6, respectively, and the United Kingdom ranked seventh with 0.3.

Many leading metaverse platforms, such as Decentraland, The Sandbox, Somnium Space, and Roblox, have already attracted a large portion of the U.S. user base. Fashion luxury brands such as GUCCI, Dolce, and Burberry have already launched NFT collections; sports brand NIKE has also recently released NFT sneakers, with an average price of between $6,000 and $10,000, and some rare sneakers have sold for more than $100,000; HSBC and JPMorgan Chase will also open virtual booths in The Sandbox and Decentraland.

The total value locked (TVL) in the decentralized finance (DeFi) market grew to nearly $200 billion, but trading volumes have been steadily declining since peak levels in mid-January. Likewise, the report noted that “the sector’s TVL is recovering as Terra, Solana, and Avalanche’s overall rapid ecosystem surge.”