In the second quarter of 2024, user participation in the Web3 field reached a new peak, and the number of daily unique active wallets (dUAW) reached an average of 10 million. Compared with the previous quarter, this number achieved 40% significant growth.

On July 4, blockchain analysis platform DappRadar released a report stating that the decentralized application (DApp) industry has experienced unprecedented expansion in many aspects and has shown an overall positive growth trend.

Social dApp and NFT market growing significantly

In the second quarter of 2024, the social decentralized application (dApp) and NFT market performed well and became a significant growth point in the quarter. The growth in user activity of social dApps is particularly significant, with dUAW increasing by 66% year-on-year. This trend is mainly driven by applications such as Fantasy.top and UXLINK. Although the market share of the blockchain gaming space has declined, its user base is still growing.

At the same time, the user activity of decentralized exchanges (DEX) has also seen a significant increase, especially Uniswap and Raydium. Thanks to the addition of meme currency traders, dUAW has increased by 80% and 134% respectively. At the same time, the NFT market also ushered in its highest usage since the first quarter of 2023, with transaction volume reaching $4 billion and the number of transactions exceeding 14.9 million. Magic Eden's market share increased from 17% to 22%, while Blur's market share dropped to 31%.

However, while the number of users grew, the total value of cryptocurrencies locked in DeFi applications fell by $7 billion, a 4% drop from the previous quarter. Tron and Arbitrum's total value locked (TVL) fell by 17% and 9%, respectively. At the same time, Ethereum's second-layer solutions Linea and Base achieved counter-trend growth, with Linea's TVL increasing by 420% and Base's TVL increasing by 44%.

DappRadar warned that dUAW's rapid growth may not be sustainable, and part of the growth is due to users participating in "airdrop farming" activities, that is, participating in certain activities in order to obtain airdrop tokens. The Blast and zkSync airdrop activities in June were one of the factors that contributed to this growth. The report emphasized that in order to achieve continued growth, it is necessary to provide an excellent user experience, develop a solid development roadmap, and have strong team support.

Security issues remain a focus of the Web3 industry

According to the latest report from DappRadar, the security issues in the Web3 industry remain severe in the second quarter of 2024, with losses caused by security vulnerabilities reaching $430 million, a 5% increase from the previous quarter. Ethereum and BNB Chain are the two chains most affected by attacks, each accounting for about 28% of security incidents. Solana chain accounts for 8% of the incidents, and other chains such as Polygon and Arbitrum have also been affected to some extent.

Among all types of security incidents, although access control issues only accounted for 23% of the total number of incidents, the financial losses caused by them accounted for 75% of the total losses, showing that such problems are extremely harmful and serious. In contrast, although flash loan attacks and dragnet attacks each accounted for 13% of the total number of incidents, the losses they caused were relatively small, accounting for only about 1% of the total losses. At the same time, although phishing attacks accounted for only 3% of the total number of incidents, the financial losses they caused also reached 0.4% of the total losses.

The above data shows that the Web3 industry needs to more accurately identify and respond to risk points that may lead to significant losses in terms of security protection. #Web3 #DApp #网络安全

Conclusion:

With the significant growth in the number of Web3 users in the second quarter of 2024, we have witnessed unprecedented activity and development potential in the industry. However, DappRadar’s report also reminds us that this growth may be partly due to short-term “airdrop farming” activities, and its sustainability still requires further observation and analysis within and outside the industry. In addition, security issues are still a major challenge that cannot be ignored in the Web3 field, especially in aspects such as access control and flash loan attacks, which require the industry to adopt more stringent security measures and risk management strategies.

Looking ahead, if the Web3 industry wants to achieve healthy and stable development, it must find a balance between innovation and security. This requires not only technological innovation and excellent user experience, but also a reliable development roadmap, strong team support, and the industry's high attention and active response to security issues. Only in this way can we jointly promote the sustainable progress of Web3 technology and create a more secure, transparent and efficient digital ecosystem for users.