Web3 User Surges by 40% in Q2 2024, Hitting 10 Million Daily Wallets

Web3 user interaction hit a new high

In Q2 2024, Web3 user interaction saw a big increase. There were roughly 10 million daily unique active wallets (dUAW). This marks a 40% rise from the first quarter. This rise was reported in a study published on July 4 by DappRadar. The analysis revealed a positive trend in DApp market across a number of different segments. This positive movement indicates a strong and growing interest in Web3 technologies.

The social sector leads the way

The social area experienced the largest growth. Daily unique active wallets rose by 66%, thanks to apps like Fantasy.top and UXLINK. These platforms attracted many users.  The market share of the blockchain gaming industry declined despite an increase in users.

Web3. Fantasy.top is a social trading card game

Web3. Fantasy.top is a social trading card game

Decentralized exchanges like Uniswap and Raydium experienced substantial growth. Uniswap’s dUAW increased by 80% and Raydium’s rose by 134%. This spike was fueled by meme coin traders, highlighting the growing interest in trading on decentralized platforms.

Since Q1 2023, NFT marketplace utilization has increased. With over 14.9 million deals, they recorded $4 billion in trading activity. While Blur’s dominance decreased to 31%, Magic Eden‘s market share increased from 17% to 22%. This indicates a change in the dynamics of the NFT market.

Decline in Total Value Locked in DeFi

The whole value of cryptocurrency locked in DeFi applications (TVL) decreased by $7 billion, or 4%, in the quarter that ended despite an increase in the number of users. Significant TVL declines of 17% and 9%, respectively, were observed for Tron and Arbitrum. Nevertheless, Linea and Base, two Ethereum layer-2 solutions, experienced improvements. Linea’s TVL increased by 420%, while Base’s increased by 44%.

Decline in Total Value Locked in DeFi

Decline in Total Value Locked in DeFi. Source: DappRadar

DappRadar issued a warning, suggesting that the sharp increase in daily unique active wallets (dUAW) might not last. “Airdrop farming” in which users participate in activities to obtain airdropped tokens, was partially to blame for the spike. This surge was caused in part by the June airdrops of Blast and zkSync. DappRadar highlighted the necessity of improved user experiences, robust development strategies, and strong teams for long-term growth.

The Web3 sector is still plagued by security concerns. Security breaches cost $430 million in losses in Q2 2024, an increase of 5% over Q1. With roughly 28% of events each, Ethereum and BNB Chain were the most impacted. In 8% of the cases, Solana had some involvement. Even though they only made up 23% of incidents, access control problems were responsible for 75% of all lost money.

Final Thoughts

The second quarter of 2024 was a significant milestone for Web3 user engagement. The industry saw substantial growth in social DApps, NFTs and decentralized exchanges. However, challenges in sustaining growth and addressing security concerns remain. The Web3 ecosystem’s future success depends on focusing on user experience, robust development and strong security.

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