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Tuesday, February 27, 2024

Web3 Apps Surged 124% in 2023, According to DappRadar

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The dApp industry experienced unprecedented growth, with DappRadar’s 2023 Industry Report revealing a 124% year-over-year increase in Unique Active Wallets (UAW).

The report provides an overview of the dynamic landscape, shedding light on key NFTs, DeFi, and blockchain gaming trends.

Blockchain Games Dominate

Blockchain-powered games took the lead in dApp activity with a dominance of 34%, boasting an average of 1.1 million UAW by year’s end. NFT collections and DeFi sectors also witnessed growth, with a 166% increase in new wallets for NFTs and a 77% surge in Total Value Locked (TVL) for DeFi, reaching $103 billion.

The report also delves into the performance dynamics of various blockchain chains, revealing standout performers and those facing challenges. Near, Klaytn, and Arbitrum saw the highest growth in new user wallet creation, with increases exceeding 600% year-over-year.

Harmony recovered from an exploit, while Solana faced fallout from its association with FTX. Hive, hosting the trading card game Splinterlands, reported financial difficulties and losses. Despite a 49% decrease in trading volume to $12.6 billion, the NFT sector in 2023 experienced widespread adoption.

Traditional companies, fashion brands, and political entities joined gaming studios in embracing NFTs, leading to a 445% increase in the number of NFTs sold. Platforms like Blur and OpenSea continued to dominate the market, with Pudgy Penguins bridging the gap between Web3 and Web2.

DeFi’s Strong 2023 Finish

DappRadar’s report also reveals a good finish for the DeFi sector in 2023, with a 77% surge in TVL, reaching $103 billion. Ethereum maintains its stronghold, commanding 57% of the smart contract platform space, while Layer-2 networks emerged as a preference due to efficiency and lower transaction costs.

The report explores the trends shaping DeFi’s future and highlights the upcoming Cancun (Dencun) Fork set for early 2024. The report also delves into the industry’s security challenges, with a 96% reduction to $1.9 billion in financial losses due to exploits and hacks but an increased frequency of 17.3%.

Rug pulls and deceptive practices remained the most common type of exploit. Notably, 46% of the incidents occurred on the BNB Chain, with Ethereum being the second most affected at 36%.

The report concludes by stating that the dApp industry showcases resilience in the face of challenges with the emergence of new trends, such as SocialFi and zk-rollups, promising to shape the industry in 2024.

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