As an experienced analyst, I’ve closely monitored the blockchain and Web3 space for several years now. The Q2 2024 report by DappRadar showcases some exciting developments within the ecosystem. With a record-breaking 10 million daily unique active wallets (dUAW), marking a 40% increase from the previous quarter, it’s evident that user engagement is at an all-time high.
As a data analyst, I’ve observed an impressive milestone in the second quarter of 2024. The number of daily unique active web3 wallets reached an unprecedented high, with roughly 10 million users engaging daily. This represents a substantial 40% uptick from the previous quarter.
Based on a report published by DappRadar on July 4, multiple sectors within the decentralized applications (DApps) industry experienced exceptional expansion. This widespread growth has contributed to an optimistic outlook for the industry as a whole.
Social dApps and NFTs Growth Marks Q2
In the realm of social platforms, there was a remarkable surge of 66%, almost doubling the user base. This significant growth can be attributed to popular applications such as Fantasy.top and UXLINK. Meanwhile, the blockchain gaming industry experienced an influx of users as well, albeit with a minimal reduction in market share.
As a researcher, I’ve noticed some noteworthy surges in user activity at decentralized exchanges (DEXs) like Uniswap and Raydium. To be more precise, Uniswap experienced an impressive 80% rise in daily unique address wallet interactions (dUAW), while Raydium saw a staggering 134% increase. These upticks can be attributed to the influx of meme coin traders who have recently shown great interest in these platforms.
NFT marketplaces experienced their peak usage since the first quarter of 2023, recording a trading volume of approximately $4 billion from over 14.9 million distinct transactions. Magic Eden’s market share expanded from 17% to 22%, while Blur’s previously stronghold decreased to 31%.
In contrast to the surge in user counts, the aggregate value of cryptocurrency secured in Decentralized Finance (DeFi) applications saw a decrease of approximately $7 billion. This represents a 4% drop compared to the preceding quarter. Notably, Tron and Arbitrum suffered significant losses in Total Value Locked (TVL), with declines of 17% and 9%, respectively.
Instead of “However, Ethereum layer-2 solutions Linea and Base went against the flow, with Linea’s total value locked increasing by an astounding 420% and Base’s by an impressive 44%,” you could also say “Defying the general trend, Ethereum layer-2 projects Linea and Base experienced significant growth. Linea’s total value locked jumped by 420%, while Base saw a 44% rise.”
Simultaneously, DappRadar issued a warning about the potential unsustainability of dUAW’s significant expansion. They identified some of this growth as being driven by “airdrop farming,” a practice in which participants complete certain tasks to receive distributed tokens as rewards.
I analyzed the data and discovered that the June airdrops by The Blast and zkSync significantly boosted the growth we’ve observed recently. The importance of delivering top-notch user experiences, clear development plans, and robust teams was underscored in our report as crucial factors for sustained expansion.
Security Still a Major Concern
During this period, the report brought attention to the fact that security continues to be a major issue in the Web3 sector. In Q2 of 2024, there were reportedly $430 million in financial losses due to security breaches, representing a 5% rise compared to the preceding quarter.
Approximately 28% of the reported occurrences affected Ethereum and BNB Chain separately, while Solana contributed to around 8%. The remaining incidents occurred on other blockchain networks such as Polygon and Arbitrum.
Despite making up just over a quarter (23%) of all reported incidents, access control issues were responsible for an astounding 75% of the total funds that were lost. In contrast, flash loan attacks and rug pulls each accounted for around 13% of the incidents but caused only about 1% of the overall financial losses. Conversely, phishing attacks, which represented approximately 3% of all reported incidents, resulted in a relatively small fraction (0.4%) of the total damage to funds.
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2024-07-06 23:40