According to a report published by DappRadar on July 04, 2024, there is a notable increase in daily unique active wallets across Web3. Also known as dUAW, the category jumped by 40% in the second quarter of 2024 compared to the first quarter. dUAW was around 10 million, further reflecting a new ATH in Web3. However, the blockchain analytics platform has warned that this growth may not be sustainable.
DappRadar has hinted that the surge in Web3 users could be largely due to temporary airdrops.
Nevertheless, there is a bullish trajectory across the ecosystem, with every category of Web3 experiencing growth. It is led by the social sector with an increase of over 66%, followed by the blockchain gaming sector despite a decline in share compared to other sectors. The social sector was driven by dApps like UXLINK and Fantasy.top throughout the second quarter.
It is interesting to note that the chart was nearly above average by the end of December 2023. It picked up pace in the early days of the current year and marked a significant growth from March.
Trading volume across NFT marketplaces reached $4 billion while recording the highest usage over the first quarter. More than 14.9 million individual NFT trades were done. This happened at a time when the dominance of Blur was reduced to half and its market share fell to 31%. Magic Eden grew from 22% to 17% for an increase.
Decentralized exchange platforms Uniswap and Raydium saw growth of 80% and 134%, applicable in the same order, in dUAW. This is credited to memecoin traders piling into these applications. Jupiter Exchange fell by 12%, along with SyncSwap, which dropped by 29%. GoodDollar added to that by shedding 13% of its weight.
DappRadar has warned about an unsustainable growth trajectory, recommending that the sector focus on user experience, strong development teams, and robust roadmaps if it really wants to carry forward the momentum to the next quarter.
Another side reflects a decline of 4% in total value locked from the previous quarter. The value fell as much as $7 billion, with Tron and Arbitrum being hit the most. They lost TVL of almost 17% and 9%, respectively. Linea and Base, L2s of Ethereum, stood out on the list with an increase of 420% and 44%, respectively.
This is a boost that could not have come at the right time. The entire crypto market is struggling to keep up with the downfall of token values. Bitcoin price has slipped below $60,000, and Ethereum is struggling to support $3,000 despite speculation about the approval of Spot Ether ETF. Mt. Gox has started the process of settling dues with creditors as the German Government is on a selling spree of seized Bitcoin tokens.