The second quarter of 2024 saw an unprecedented rise in Web3 users, with daily unique active wallets (dUAW) reaching 10 million, according to a July 4 report by blockchain analytics platform DappRadar. This represents a 40% increase from the first quarter and the highest number ever recorded.
Sector Growth and Highlights
DappRadar noted significant growth across various sectors of the decentralized application (DApp) industry:
- Social Sector: This sector experienced the most substantial growth, with a 66% increase in dUAW, driven by applications like Fantasy.top and UXLINK.
- Blockchain Gaming: More users engaged with blockchain gaming apps, though their overall market share slightly declined.
- NFT Marketplaces: Trading volume hit $4 billion, the highest since Q1 2023, with over 14.9 million individual NFT trades. Magic Eden’s market share grew from 17% to 22%, while Blur’s dominance decreased to 31%.
Decentralized Exchanges and Finance
Decentralized exchanges also saw significant user growth:
- Uniswap and Raydium: Uniswap’s user base grew by 80%, and Raydium’s by 134%, largely due to increased memecoin trading.
However, the total value locked (TVL) in decentralized finance (DeFi) applications fell by $7 billion, a 4% decline from the previous quarter. Tron and Arbitrum were notably affected, losing 17% and 9% of their TVL, respectively. In contrast, Ethereum layer-2 solutions like Linea and Base saw substantial increases, with Linea’s TVL growing by 420% and Base’s by 44%.
Sustainability Concerns
Despite the impressive growth, DappRadar cautioned that the surge in dUAW might not be sustainable. The increase may have been partly fueled by “airdrop farming,” where users perform actions in anticipation of receiving token airdrops as rewards. Notably, the Blast and zkSync airdrops occurred in June, which could have contributed to the inflated user numbers.
Summary Review: While the second quarter of 2024 marked a significant milestone for Web3 adoption, the sustainability of this growth remains uncertain. The industry will need to continue innovating and providing value to maintain and build on this user base.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
