2024 kicks off in the shadow of the approaching Bitcoin halving, casting a wave of “optimism” across the Web3 industry, according to an update from DappRadar.
With on-chain metrics signaling a “positive trend,” the start of the year, despite its highs and lows, sketches an “intriguing” outline for what’s ahead, the team at DappRadar noted.
The team has shared an extensive report in order “to unravel the nuances of this promising year in the dapp industry.”
Key Takeaways from the report are as follows:
- Daily Unique Active Wallets (dUAW) have reached a new all-time high of 5.3 million, the highest since 2022. Social dapps witnessed a 262% surge, nearing 1 million in dUAW.
- Meanwhile, on-chain gaming continues to lead, maintaining a dominant 28% share in the dapp industry.
- The Total Value Locked (TVL) in the DeFi sector has increased by 7% reaching $110 billion, the highest since 2022.
- NFT trading volume reaches $1.5 billion, with 903,479 unique traders.
Blur leads NFT trading volumes with a 47% market share but accounts for only 4% of sales, indicating a focus on high-value NFTs at an average price of $3,260. In contrast, OpenSea, with a 6.6% share in trading volume, dominates 14% of NFT sales, featuring the lowest average price at $136. - $41 million in crypto assets were lost due to hackers exploiting smart contracts and duping investors.
As stated in the update, the dapp industry has reportedly “demonstrated a solid start in the early part of this year, marked by a notable achievement of 5.3 million daily Unique Active Wallets (dUAW). This figure, an 18% increase from the previous month, sets a new high point since 2022, signifying a sustained upward momentum.”
With the upcoming Bitcoin halving event, there’s increasing anticipation “about the potential of a forthcoming bull market in the industry.”
Focusing on specific industry segments, gaming remains “at the forefront with a steady 1.5 million dUAW, maintaining its previous month’s level.”
Similarly, the DeFi sector also “shows consistent performance, maintaining its 1 million dUAW figure from the last month.”
The report concluded that it’s evident that the dynamic dapp sector is “on the brink of a new wave of adoption. Surpassing the milestone of 5 million dUAW is a testament to the industry’s growing influence and potential.”
This significant number not only reflects the current health of the industry “but also hints at its promising future.”
Gaming continues to be “a powerhouse within the dapp landscape.”
Its consistent strength and appeal “have been pivotal in driving adoption in the past years – 2022, 2023, and now it seems poised to play a similar role in 2024. The gaming vertical has proven to be more than a trend; it’s a driving force that continually shapes and energizes the dapp ecosystem.”
Meanwhile, the social vertical “has made an impressive start this year, suggesting that this sector will likely maintain its upward trajectory.”
The integration of decentralized applications into social platforms is “not just a fleeting trend but a significant shift in how we interact and engage in the digital realm.”
As stated in the report, the dapp industry’s growth and diversification “are clear indicators of its maturation and resilience.”
The increasing daily UAW is a clear signal “that the dapp industry is not only thriving but also evolving to meet the changing needs and expectations of its users.”
Interestingly, decentralized applications have seen significantly greater adoption in the past year, especially when compared to their initial stages. Despite the large number of scams, fraudulent activities, and damaging security breaches experienced by dApps and DeFi services, there has been a substantial amount of software development work that has helped this nascent sector build a more solid foundation. However, the current state of dApps and DeFi remains premature and mainstream adoption is still not realistic at this point.