Report Shows Web3 Users Spike to 10 Million for the First Time

DappRadar’s July 4 report reveals a record-high 10 million daily unique active wallets (dUAW) in Q2 2024. This represents a 40% increase from Q1 and marks the highest number ever achieved. 

The growth spans various sectors of the decentralized application (DApp) industry. However, the report cautions the increase could be attributed to temporary airdrops.

Web3 Sectors Surge: Social Apps Lead, NFTs and DEXs See Massive Growth

In its July 4 report, the blockchain analytics firm DappRadar noted a significant growth in Web3 users, which has contributed to the Web3 ecosystem’s overall bullish trajectory. 

According to the report, 10 million unique active wallets (UAWs) interact with DApps daily, a 40% increase from Q1 2024 and the highest ever recorded.

DappRadar added that every sector of the decentralized application industry witnessed significant growth. 

The social sector led the growth charge with a remarkable 66% increase in daily unique active wallets (dUAW), now averaging around 2 million. Apps like Fantasy. top and UXLINK drove this impressive expansion.

Moreover, Blockchain gaming saw more users, but its total market share dropped slightly by 2% compared to other ecosystems.

In contrast, NFT marketplaces experienced their highest activity since the first quarter of 2023. According to data, NFT trading volume reached $4 billion, with 14.9 million individual trades in Q2 2024. This means more people bought, sold, and traded NFTs than in the past year.

Also, Magic Eden, an NFT marketplace, increased its market share from 17% to 22%, while Blur’s dominance dropped significantly to 31%.

Furthermore, decentralized platforms like Raydium and Uniswap saw significant user increases. Uniswap grew by 80%, while Raydium surged significantly by 134%, partly driven by the increased number of memecoin traders on the platforms.

DeFi TVL Drops While Ethereum Layer-2s Shine

Despite more users joining DeFi applications, the total value locked (TVL) dropped by $7 billion in Q2, representing a 4% decline compared to the previous quarter.

Notably, Tron and Arbitrum were particularly affected; Tron recorded a loss of 17%, while Arbitrum slumped 9% in TVL.

However, Ethereum layer-2s Linea and Base went against the trend. While other DeFi platforms saw a drop, these two platforms saw significant growth. Linea’s total value locked (TVL) grew by 420%, while Base’s TVL increased by 44%. 

Meanwhile, DappRadar warns that the growth in Q2 might not last as expected as it could be due to “airdrop farming” activities. So, investors or users might be using these platforms to get free tokens, not for long-term use.

Moreover, the Blast and zkSync airdrops in June may have contributed to the surge in user numbers. According to a report, more than 690,000 users were eligible for the ZK token.

Also, the upcoming airdrops Tapswap and Hamster Kombat attributed to the inflow of users. While user adoption grows, challenges remain in sustaining this growth and building long-term value.

However, DappRadar emphasizes the need for “superior user experiences, robust roadmaps, and strong development teams” to maintain this growth.