In the second quarter of the year, the usage of Web3 applications reached an all-time high, according to a report from blockchain analytics platform DappRadar. The number of daily unique active wallets (dUAW) exceeded 10 million, marking a 40% increase from the previous quarter and setting a new record.
The report highlighted the substantial growth in every sector of the decentralized application (DApp) industry, contributing to an overall positive trend. Among the sectors, the social sector experienced the largest percentage growth, with dUAW increasing by over 66%. This growth was driven by popular apps like Fantasy.top and UXLINK. The blockchain gaming sector also gained more users during the quarter, although its market share slightly declined compared to other sectors.
Non-fungible token (NFT) marketplaces witnessed their highest usage since the first quarter of 2023, with a trading volume reaching $4 billion. Throughout the quarter, there were over 14.9 million individual NFT trades. Magic Eden, an NFT marketplace, saw its market share rise from 17% to 22%, while the leading marketplace, Blur, saw its dominance decrease by half, dropping to a 31% market share.
Decentralized exchanges Uniswap and Raydium experienced significant growth in dUAW, attracting memecoin traders to their platforms. Uniswap saw an 80% increase in the number of users, while Raydium saw a remarkable 134% surge.
Despite the increasing number of users, the total value of cryptocurrency locked into decentralized finance applications (TVL) decreased by $7 billion, a decline of 4% compared to the previous quarter. Tron and Arbitrum were particularly affected, losing 17% and 9% of their TVL, respectively. However, Ethereum layer-2s Linea and Base were exceptions, as Linea’s TVL skyrocketed by 420% and Base’s by 44% during the quarter.
DappRadar cautioned that the extraordinary growth in dUAW during the second quarter might not be sustainable. It suggested that part of this growth could be attributed to “airdrop farming,” where users perform actions in hopes of receiving airdropped tokens as rewards. The Blast and zkSync airdrops, both occurring in June, could have contributed to this surge.
To maintain the rise in dUAW, the report emphasized the importance of delivering an exceptional user experience, robust roadmaps, and strong development teams.
In conclusion, the second quarter witnessed a remarkable surge in the usage of Web3 applications, with various sectors experiencing significant growth. However, sustaining this growth will require a focus on enhancing user experience and ensuring strong development strategies.