- The number of daily unique active wallets (dUAWs) has increased 40% since Q1 2024.
- DeFi TVL is down 4% and NFTs are experiencing their best quarter since Q1 2023.
- Bearish market conditions could see Web3 activity dwindle in the coming months.
Web3 is attracting 10 million regular users to its ecosystem every day, and non-fungible tokens (NFTs) could be finally making a comeback according to a new DappRadar report.
With Web3 adoption at an all-time high, can it sustain this momentum amid bearish market conditions?
Web3 Adoption
According to a report from blockchain analytics platform DappRadar, the number of people using Web3 applications has reached a record high of approximately 10 million and contributes towards “an overall bullish trajectory”.
The report found that across all sectors of the industry, more users have been onboarded than ever. DappRadar notes that SocialFi platforms such as Fantasy.top, and UXLINK have seen the biggest growth (66%) since Q1 2024, averaging around 2 million UAWs.
Despite SocialFi growth, blockchain gaming and decentralized finance (DeFi) still reign supreme in terms of Web3 usage.
Interestingly, the DeFi sector has seen a slight decrease in total value locked (TVL), dropping by $7 billion. The biggest losers were Tron and Arbitrum, which lost 17% and 9% of their TVL, respectively.
Raydium and Uniswap V3 were the largest UAW gainers, increasing their user base by 134% and 80% respectively. DappRadar notes that this surge is due to the rise of memecoin trading, which was one of the biggest trends in crypto this quarter.
NFTs Return to Life
The report also found that the NFT sector has begun to show signs of life. With trading volumes of approximately $4 billion across 14.9 million sales, this has been NFTs’ best quarter since Q1 2023.
While the report by DappRadar may indicate that NFTs are alive and well with a 3.7% increase in trading volumes and a 28% increase in total sales, it is worth noting that this was largely spurred on by the arrival of Bitcoin Ordinals and Runes,
The NFT marketplace landscape is also experiencing a shift, with the once-dominant OpenSea now sitting in third place in terms of transaction volume. OpenSea recorded around $369 million across 1.8 million transactions. Meanwhile, Blue has claimed the top spot with $1.27 billion in sales, followed by Magic Eden with $884 million.
Web3 Growth Unsustainable?
In their closing remarks, DappRadar warns that Q2 significant growth may not be sustainable.
The report highlights that numerous incredible developments are occurring in the space, but the marked increase in UAWs could largely be attributed to airdrop farming, which could have implications in the short term, writing :
“To ensure long-term retention of users post-airdrop, it is essential to focus on delivering a superior user experience, robust roadmaps, and strong development teams.”
The report comes as the entire crypto market undergoes what many are hoping is a deep market correction. With Bitcoin (BTC) now below $60k and Ethereum (ETH) once again below $3,000, Q3 figures may tell a different story later this year.
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