SNEAK PEEK
Web3 applications reached a record 10 million daily users in Q2.
The social sector-led growth, with a 66% increase in active wallets.
Sustaining growth will need better user experience and innovation.
According to a July 4 report by blockchain analytics platform DappRadar, the second quarter witnessed a significant surge in the usage of Web3 applications, with daily unique active wallets (dUAW) reaching an unprecedented 10 million. This marks a 40% increase from the first quarter and sets a new record in the decentralized application (DApp) industry.
Each sector within the DApp ecosystem experienced substantial growth, contributing to the overall positive trajectory. The social sector emerged as the frontrunner, boasting a more than 66% increase in dUAW. This impressive growth was primarily driven by popular apps such as Fantasy. Top and UXLINK. Meanwhile, the blockchain gaming sector also saw an uptick in users, though its overall market share experienced a slight decline compared to other industries.
NFT marketplaces recorded their highest usage since Q1 2023, with trading volumes hitting $4 billion. The quarter saw over 14.9 million individual NFT trades. Notably, NFT marketplace Magic Eden increased its market share from 17% to 22%, while the dominant player Blur saw its share halved, dropping to 31%.
Decentralized exchanges like Uniswap and Raydium experienced significant increases in dUAW, spurred by a surge in memecoin traders. Uniswap’s user base grew by 80%, while Raydium saw a staggering 134% increase. Despite the rising user numbers, the total value of cryptocurrency locked into decentralized finance (DeFi) applications (TVL) fell by $7 billion, a 4% decline from the previous quarter. Tron and Arbitrum were particularly affected, losing 17% and 9% of their TVL, respectively.
In contrast, Ethereum layer-2 solutions Linea and Base bucked the trend, with Linea’s TVL skyrocketing by 420% and Base’s by 44%.
DappRadar cautioned that the remarkable growth in dUAW during Q2 might not be sustainable, attributing part of the increase to “airdrop farming.” This practice involves users performing actions to receive airdropped tokens as rewards. Both the Blast and zkSync airdrops took place in June. DappRadar emphasized the importance of delivering a superior user experience, robust roadmaps, and strong development teams to maintain this growth.
The second quarter showcased a significant milestone for Web3 applications, driven by growth across various sectors. However, sustaining this momentum will require continued innovation and user-focused development.
The post Web3 Apps Surge 40%, Social and Gaming Sectors Boom appeared first on Today NFT News.
