In the second quarter of 2024, Web3 user interaction grew significantly. There are approximately 10 million daily unique active wallets (dUAW). This is a 40% increase from the first quarter. This growth was reported in a study published by DappRadar on July 4. The analysis reveals positive trends in the DApp market across several different areas. This positive change demonstrates the strong and growing interest in Web3 technology.
Social sector leads the way
The social sector is growing the fastest. Daily unique active wallets grew by 66% thanks to apps like Fantasy.top and UXLINK. These platforms attract many users. Despite the increase in users, the market share of the blockchain gaming industry has declined.
Network 3. Fantasy.top is a social trading card game
Decentralized exchanges such as Uniswap and Raydium have experienced significant growth. Uniswap’s dUAW grew by 80%, and Raydium grew by 134%. The surge was driven by meme coin traders and highlights the growing interest in trading on decentralized platforms.
NFT market utilization has increased since the first quarter of 2023. Their transaction volume exceeds 14.9 million transactions and their trading activity amounts to $4 billion. Blur’s dominance dropped to 31%, while Magic Eden’s market share increased from 17% to 22%. This indicates a change in the dynamics of the NFT market.
Total value locked in DeFi drops
Despite the increase in user numbers, the total value of cryptocurrencies locked in DeFi applications (TVL) ended the quarter down by $7 billion, or 4%. The TVL of Tron and Arbitrum dropped significantly by 17% and 9% respectively. Still, Linea and Base, two Ethereum layer 2 solutions, have experienced improvements. Linea’s TVL increased by 420%, while Base’s increased by 44%.
Total value locked in DeFi decreases. Source: DappRadar
DappRadar has issued a warning, suggesting that the dramatic growth in daily unique active wallets (dUAW) may not continue. “Airdrop mining” where users participate in events to obtain airdrop tokens is part of the reason for the price surge. Part of this surge is due to the June airdrops of Blast and zkSync. DappRadar highlights the need for improved user experience, a solid development strategy, and a strong team for long-term growth.
The Web3 space is still plagued by security issues. In the second quarter of 2024, security breaches caused losses of $430 million, an increase of 5% from the first quarter. Ethereum and BNB Chain were the most affected, each accounting for about 28% of the incidents. In 8% of cases, Solana had some involvement. Although access control issues accounted for only 23% of incidents, access control issues caused 75% of all losses.
final thoughts
Q2 2024 is an important milestone for Web3 user engagement. The industry has witnessed significant growth in social DApps, NFTs, and decentralized exchanges. However, challenges to sustain growth and address safety concerns remain. The future success of the Web3 ecosystem depends on a focus on user experience, robust development, and strong security.
