In the second quarter of 2024, the number of Web3 users soared. Around 10 million unique wallets were active daily, marking a 40% increase from the first quarter. This information comes from a study published by DappRadar on July 4. The analysis shows a positive trend in the DApp market across various segments, indicating growing interest in Web3 technologies.
The social sector experienced the most significant growth, with daily active wallets rising by 66%, driven by apps like Fantasy.top and UXLINK. While the blockchain gaming industry saw more users, its market share declined. Decentralized exchanges also saw substantial growth. Uniswap’s daily active wallets increased by 80%, and Raydium’s rose by 134%, driven by meme coin traders who are increasingly interested in decentralized trading platforms.
Since the first quarter of 2023, the use of NFT marketplaces has grown, with over 14.9 million transactions and $4 billion in trading activity. While Blur’s dominance fell to 31%, Magic Eden’s market share increased from 17% to 22%, showing a shift in the NFT market dynamics.
Despite more users, the total value of cryptocurrency locked in DeFi applications (TVL) dropped by $7 billion, or 4%, by the end of the quarter. Tron and Arbitrum saw significant TVL declines of 17% and 9%, respectively. However, Ethereum layer-2 solutions Linea and Base saw improvements, with Linea’s TVL increasing by 420% and Base’s by 44%. DappRadar warned that the sharp rise in daily active wallets might not last. “Airdrop farming,” where users participate in activities to earn airdropped tokens, partly caused this spike, particularly with the June airdrops of Blast and zkSync. DappRadar emphasized the need for better user experiences, strong development strategies, and solid teams for long-term growth/
The Web3 sector continues to face security issues. In Q2 2024, security breaches led to $430 million in losses, a 5% increase over Q1. Ethereum and BNB Chain were the most affected, with each seeing about 28% of incidents. Solana was involved in 8% of the cases. Although access control problems made up only 23% of incidents, they accounted for 75% of all lost money.
The second quarter of 2024 was a significant period for Web3 user engagement, with notable growth in social DApps, NFTs, and decentralized exchanges. However, challenges remain in maintaining growth and addressing security concerns. The future success of the Web3 ecosystem depends on improving user experience, robust development
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