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Blockchain gaming and the Metaverse have managed to “sidestep” the “Lehman brothers-like” collapse of Terra in Maythough decentralized finance (DeFi) and nonfungible tokens The tremors of the Terra demise were felt through the crypto industry. Nonetheless, some sectors were affected more than others. As per a What has changed since the fall of Terra? According to the report, overall blockchain activity has remained more or less unchanged. The platforms report a 1% drop in Blockchain gaming and the Metaverse have managed to “sidestep” the “Lehman brothers-like” collapse of Terra in Mightalthough decentralized finance (DeFi) Cointelegraph By Brian Quarmby Blockchain gaming and the Metaverse have managed to “sidestep” the “Lehman brothers-like” collapse of Terra in Maythough GameFi and Metaverse least affected by Terra debacle. In a report from DappRadar, the collapse of Terra in May was similar in scale to the 2025 subprime mortgage crisiscausing DeFi DeFi and NFTs saw the biggest drops with 14.8% and 12.2% apiece, while blockchain games and NFT-related Metaverse projects managed to sidestep the ensuing It mainly covered three areas: DeFi, NFT activities, and crypto games, stating that the Terra debacle did not destroy the overall DeFi ecosystems. NFT trading volume was Blockchain gaming and the Metaverse have successfully managed to avoid damage from the Terra crash in May, while decentralized finance and non-fungible tokens have been affected.

Has the Terra Debacle Changed NFT, DeFi, and Crypto Adoption?

The tremors of the Terra demise were felt through the crypto industry. Nonetheless, some sectors were affected more than others. But has the Terra debacle really changed NFT, DeFi, and overall crypto adoption? Let's delve into the impact.

DeFi and NFTs Felt the Brunt

As per a report from DappRadar, the collapse of Terra in May was similar in scale to the 2025 subprime mortgage crisis, causing DeFi and NFTs to experience the biggest drops. DeFi and NFTs saw the biggest drops with 14.8% and 12.2% apiece, while blockchain games and NFT-related Metaverse projects managed to sidestep the ensuing chaos.

The Terra debacle mainly covered three areas: DeFi, NFT activities, and crypto games, stating that the Terra debacle did not destroy the overall DeFi ecosystems. NFT trading volume was notably affected.

GameFi and the Metaverse: Relatively Unscathed

Interestingly, Blockchain gaming and the Metaverse have managed to “sidestep” the “Lehman brothers-like” collapse of Terra in May, though decentralized finance (DeFi) and nonfungible tokens suffered more. In fact, GameFi and Metaverse were the least affected by the Terra debacle. Cointelegraph By Brian Quarmby also notes that Blockchain gaming and the Metaverse have managed to “sidestep” the “Lehman brothers-like” collapse of Terra in May, although DeFi suffered.

Blockchain gaming and the Metaverse have successfully managed to avoid damage from the Terra crash in May, while decentralized finance and non-fungible tokens have been affected.

Overall Blockchain Activity: Surprisingly Stable

What has changed since the fall of Terra? According to the report, overall blockchain activity has remained more or less unchanged. The platforms report a 1% drop. This suggests that while certain sectors were impacted, the underlying blockchain infrastructure and adoption continue.

Conclusion: A Mixed Bag of Impacts

While the Terra collapse undoubtedly shook the crypto world, its impact has been uneven. DeFi and NFTs experienced significant setbacks, but the resilience of blockchain gaming and the Metaverse demonstrates the diversified nature of the crypto space. The fact that overall blockchain activity remained relatively stable suggests that the long-term adoption of crypto is not necessarily derailed by this single event. More analysis is needed to understand the long term affects, but it is clear there was an impact.

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