Web3 Users Surge by 40 to Hit Record High in Q2

CoinWorld News:
In the second quarter of 2024, Web3 user engagement hit a historic high, with approximately 10 million daily unique active wallets (dUAW), representing a 40% increase from the first quarter. According to a report by the blockchain analytics platform DappRadar on July 4th, this unprecedented growth has spanned across various sectors of the decentralized application (DApp) industry, leading to an overall bullish trend.
Social dApps and NFTs Drive Growth in Q2
The social sector saw the highest increase, with dUAW growing by 66%. This growth was driven by applications such as Fantasy.top and UXLINK. User activity in the blockchain gaming industry also saw an uptick, despite a slight decrease in market share.
Decentralized exchanges like Uniswap and Raydium experienced significant increases in user activity. Due to the influx of meme coin traders, Uniswap saw an 80% increase in dUAW, while Raydium’s rose by 134%.
The usage of NFT markets reached its highest level since the first quarter of 2023, with over $40 billion in transaction volume from more than 14.9 million individual trades. The market share of Mystic Eden rose from 17% to 22%, while Blur’s dominance fell to 31%.
Despite the continuous growth in user numbers, the total value locked (TVL) in DeFi applications decreased by $7 billion. This marked a 4% decline compared to the previous quarter. Tron and Arbitrum suffered significant losses in TVL, dropping by 17% and 9% respectively.
However, Ethereum Layer 2 solutions Linea and Base saw impressive growth, with Linea’s TVL soaring by 420% and Base’s TVL rising by 44%.
Meanwhile, DappRadar cautioned that the rapid growth of dUAW may not be sustainable. They attributed part of the growth to “airdrop farming,” where users engage in activities to earn airdropped tokens.
The surge was facilitated by the June airdrops of Blast and zkSync. The report underscored the need for outstanding user experience, solid development roadmaps, and strong teams for sustainable growth.
Security Remains a Major Concern
Additionally, the report emphasized that security remains a significant issue of concern in the Web3 industry. In the second quarter of 2024, security vulnerabilities led to a loss of $430 million, a 5% increase from the previous quarter.
Ethereum and BNB Chain were most affected, accounting for 28% of incidents each, while Solana was involved in 8% of cases. The remaining incidents were spread across various chains, including Polygon and Arbitrum.
While access control issues accounted for 23% of incidents, they represented 75% of the total funds lost. Other types of incidents, including flash loan attacks and rug pulls, each made up 13% of incidents but only 1% of total losses. On the other hand, phishing attacks accounted for 3% of incidents, causing economic losses that made up approximately 0.4% of the total losses.