In a report dated July 4th by blockchain analytics platform DappRadar, it was revealed that the usage of Web3 applications soared to unprecedented heights during the second quarter. The period witnessed approximately 10 million daily unique active wallets (dUAW), marking a 40% surge from the previous quarter and setting a new record.
The report highlighted substantial growth across all sectors of the decentralized application (DApp) industry, contributing to an overall optimistic trend.
The social sector exhibited the most significant percentage increase, with dUAW rising by over 66%. This surge was propelled by platforms such as Fantasy.top and UXLINK. Meanwhile, the blockchain gaming sector also saw an increase in users, although its market share slightly decreased compared to other sectors.
The non-fungible token (NFT) marketplaces experienced their highest activity since Q1 2023, with a trading volume hitting $4 billion. The quarter witnessed over 14.9 million individual NFT transactions. Magic Eden saw its market share rise from 17% to 22%, while the leading platform, Blur, saw its dominance halved to 31%.
Decentralized exchanges Uniswap and Raydium saw substantial growth in dUAW, driven largely by memecoin traders flocking to these platforms. Uniswap saw an 80% increase in users, while Raydium experienced a staggering 134% rise.
Despite the surge in user numbers, the total value locked (TVL) in decentralized finance applications dropped by $7 billion, representing a 4% decline from the previous quarter. Tron and Arbitrum were particularly affected, with a 17% and 9% decrease in TVL, respectively.
Ethereum layer-2 solutions Linea and Base were outliers for the quarter, 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 and could have been partly driven by “airdrop farming,” where users perform actions in hopes of receiving airdropped tokens. Notably, the Blast and zkSync airdrops occurred in June.
The report stressed the importance of focusing on delivering superior user experiences, robust roadmaps, and strong development teams to sustain the rise in dUAW.
(Source: DappRadar)