Web3 User Engagement Hits Record High in Q2 2024
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
Web3 user engagement soared to unprecedented levels in the second quarter of 2024, with daily unique active wallets (dUAW) reaching about 10 million—marking a 40% rise from the previous quarter.
A report from blockchain analytics platform DappRadar, released on July 4, highlighted remarkable growth across various sectors of the decentralized application (DApp) industry, indicating a broadly positive trend.
Significant Growth in Social dApps and NFTs
The social sector experienced the most notable increase, with dUAW climbing by 66%, driven by platforms like Fantasy.top and UXLINK. Although the blockchain gaming sector also saw a rise in users, its market share slightly declined.
Decentralized exchanges (DEXs) such as Uniswap and Raydium recorded significant increases in user activity. Uniswap’s dUAW increased by 80%, and Raydium’s by 134%, due to an influx of meme coin traders.
NFT marketplaces reached their highest activity levels since Q1 2023, with a trading volume of $4 billion across over 14.9 million trades. Magic Eden’s market share grew from 17% to 22%, while Blur’s dominance fell to 31%.
Despite the growing user base, the total value locked (TVL) in DeFi applications dropped by $7 billion, a 4% decline from the previous quarter. Tron and Arbitrum saw significant TVL losses, with drops of 17% and 9%, respectively.
In contrast, Ethereum layer-2 solutions Linea and Base saw TVL increases of 420% and 44%, respectively.DappRadar cautioned that the dramatic rise in dUAW might not be sustainable, partly due to “airdrop farming,” where users engage in activities to earn airdropped tokens.
The Blast and zkSync airdrops in June contributed to this spike. The report stressed the importance of delivering superior user experiences, having solid development roadmaps, and building strong teams to ensure continued growth.
Security Challenges Persist
The report also emphasized that security remains a significant concern for the Web3 industry. Q2 2024 saw $430 million in losses due to security breaches, a 5% increase from the previous quarter.
Ethereum and BNB Chain were the most affected, each responsible for about 28% of the incidents, while Solana accounted for 8% of the cases. Other chains, including Polygon and Arbitrum, were involved in the remaining incidents.Access control issues, though representing only 23% of incidents, accounted for 75% of the total funds lost.
Flash loan attacks and rug pulls each comprised about 13% of the incidents but resulted in only about 1% of the total losses. Phishing attacks, making up 3% of incidents, caused approximately 0.4% of the total financial damage.
In order to place winning trades with us via Bybit, You can open an account here.
