Web3 user engagement reached a historic high in Q2 2024, with around 10 million daily unique active wallets (dUAW), a 40% increase from Q1, according to DappRadar. The growth spanned various decentralized application (DApp) sectors, leading to an overall bullish trend.

Social dApps and NFTs saw significant growth, with the social sector experiencing a 66% rise in dUAW. Decentralized exchanges (DEXs) like Uniswap and Raydium also saw substantial user activity increases. Despite this, the total value of crypto locked in DeFi applications fell by $7 billion, a 4% decline from the previous quarter.

However, Ethereum layer-2 solutions Linea and Base bucked the trend, with Linea’s TVL surging by 420% and Base’s by 44%. DappRadar warned that the dramatic growth in dUAW might not be sustainable, attributing part of the increase to "airdrop farming."

Security remains a significant concern, with Q2 2024 seeing $430 million in losses due to security breaches, a 5% increase from the previous quarter. Ethereum and BNB Chain were the most affected, accounting for about 28% of the incidents each.