According to a report from blockchain analytics platform DappRadar, the number of unique active wallets (UAW) that engaged with Web3 apps saw a significant increase of 124% in 2023. The growth was led by Near, Klaytn, and Arbitrum, while Harmony, Solana, and Hive experienced a decline in users.
UAW measures the number of wallets that interact with a Web3 app, also known as a decentralized application (DApp), within a specific time frame. Throughout the year, an average of 4.2 million UAWs interacted with these apps daily, more than double the number of users from the previous year. The growth was primarily driven by nonfungible token (NFT) products, which experienced a remarkable increase of 166% compared to 2022. Decentralized finance (DeFi) came in second with a 112% increase, while social media apps saw a 29% gain, thanks to leading protocols like Friend.tech, Lens Protocol, and Galxe.
Among all blockchain networks, Near, Klaytn, and Arbitrum showed the highest growth rates. Near witnessed a staggering increase of 1,902%, Klaytn recorded a growth rate of 1,099%, and Arbitrum saw a growth rate of 624%. Notable DApps on these networks include the loyalty rewards platform Kai-Ching, fitness app SuperWalk, and decentralized exchange Uniswap v3.
On the other hand, Harmony, Solana, and Hive experienced significant losses in UAW. Harmony’s UAW fell by 96%, Solana’s by 76%, and Hive’s by 68%. The decline in Harmony’s UAW was attributed to a bridge exploit in June 2022 and its subsequent inability to recover in the following year. Solana also faced challenges due to its association with FTX, but it managed to make an impressive recovery in the last months of 2023, resulting in fewer losses than initially anticipated.
As for the Hive network, the report speculates that its loss of users could be attributed to missing financial targets and reporting significant losses. Splinterlands, the 11th-ranked Web3 game by UAW, is hosted on the Hive network.
The report further confirms the increasing activity on blockchain networks over the past year. In October, the social media app Stars Arena attracted over 10,000 UAW to the Arbitrum network. In November, the Ethereum network collected over $54.3 million in fees within a single week due to a surge in the number of transactions being submitted.