In 2023, web3 apps soared 124%, with blockchain gaming leading the way at 34% dominance. Non-fungible tokens (NFTs) and decentralized finance (DeFi) also surged, reaching $103 billion in TVL.
According to a Jan. 11 study from blockchain analytics company DappRadar, the number of unique active wallets (UAW) that interacted with Web3 apps climbed by 124% in 2023. While Harmony, Solana, and Hive had a decrease in users, Near, Klaytn, and Arbitrum saw the greatest growth over the year.
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UAW is a metric that quantifies the number of wallet interactions with a Web3 application, sometimes referred to as a decentralized application (dApp), in a given amount of time.
Over the course of the year, these apps were used by an average of 4.2 million UAWs per day, which is more than twice as many as the previous year.
Web3 apps saw 124% growth in 2023, led by Near, Klaytn, Arbitrum — DappRadar
— Bradicoin (@Bradicoin10) January 18, 2024
Blockchain games lead
By the end of the year, games powered by blockchain accounted for 34% of all dApp activity and had an average of 1.1 million UAW.
Growth was also seen in the NFT collections and DeFi sectors, with a 166% rise in new NFT wallets and a 77% increase in Total Value Locked (TVL) for DeFi, reaching $103 billion.
The report also explores the performance patterns of several blockchain chains, identifying high performers and low performers.
Additionally, the adoption of NFTs by gaming studios was accompanied by traditional businesses, fashion labels, and political organizations, which resulted in a 445% rise in NFT sales. The market was still dominated by Blur and OpenSea platforms, with Pudgy Penguins filling the gap between web3 and web2.
The dApp industry experienced unprecedented growth, with DappRadar’s 2023 Industry Report revealing a 124% year-over-year increase in Unique Active Wallets (UAW).
The report provides an overview of the dynamic landscape, shedding light on key NFTs, # #https://t.co/3NnYwYfg68 pic.twitter.com/paljVIUCRM— Cryptoyoog (@Cryptoyooog) January 16, 2024
Products involving non-fungible tokens (NFTs) saw the greatest growth, rising 166% over 2022; decentralized finance (DeFi) saw the second-highest increase, up 112%.
According to the survey, social media apps saw a 29% increase, largely attributable to “leading protocols” including Lens Protocol, Galxe, and Friend.tech.
Of all blockchain networks, Near, Klaytn, and Arbitrum had the fastest growth rates. Near reported a rise of 1,902%, Klaytn of 1,099%, and Arbitrum of 624%.
The fitness app SuperWalk, the decentralized market Uniswap v3, and the loyalty rewards platform Kai-Ching are a few of the most popular dApps on these networks.
Some losses were encountered
Throughout the year, Harmony, Solana, and Hive suffered the greatest losses. UAW dropped by 96% in Harmony, 76% in Solana, and 68% in Hive. According to the research, Harmony’s downfall was caused by its June 2022 bridge exploit and its failure to bounce back the following year.
However, Solana encountered comparable issues as a result of its affiliation with FTX. Nevertheless, the report stated that Solana “saw an impressive recovery during the last months of 2023,” enabling it to end the year with fewer losses than it otherwise would have.
Also, Hive Network’s user base may have decreased as a result of “missing financial targets and reporting significant losses.” According to DappRadar, Splinterlands, the 11th-ranked Web3 game by UAW, is hosted on the Hive network.
The report offers more evidence that the past year has seen an increase in activity on blockchain networks. October saw almost 10,000 UAW join the Arbitrum network thanks to the social networking app Stars Arena. The Ethereum network received approximately $54.3 million in fees in a single week in November as a result of a spike in the volume of transactions that were submitted.
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