DApp Activity Surge Amid Bitcoin All-Time High in Q1 2024

Decentralized applications (dApps) saw a 77% increase in activity in Q1 2024 and a total of 7 million daily active user wallets.

This growth comes as bitcoin hit an all-time high in the first quarter of 2024, surpassing $73,000.

DApp activity resurges

According to DappRadar, the recent The increase in new users shows a strong recovery, signaling the end of the longest bear market experienced.

The growth has been attributed to the approval of US spot bitcoin exchange-traded funds (ETFs), which drove btc to multiple new all-time highs.

DappRadar also noted renewed interest in non-fungible tokens (nfts) throughout 2023, following a drop in their usage in 2022. The wallet count of unique daily active users rose to 4.8 million in 2023, doubling from 2022. In addition, nfts had the highest growth, 166% compared to the previous year.

This strength has continued well into 2024, with DappRadar seeing a 50% increase in trading volume to $3.9 billion and a 13% increase in sales to $11.6 million in Q1 2024 .

Blockchain games continue to lead on Web3, with a 30% dominance and attracting around 2.1 million daily unique active wallets, a 59% increase from the last quarter. nft game collections also performed well, with the biggest sales in the first quarter of 2024 being Gods Unchained with 1 million, Axie Infinity with 459 thousand and Arena of Faith with 19.5 thousand.

However, in the first quarter of 2024, the social vertical became the sector's growth pioneer with a 324% increase in active wallets. While decentralized finance, gaming, and nfts performed well, the rise of social media dApps could show an emerging trend in the industry.

Hacks and exploits remain persistent

In the first quarter of 2024, the blockchain space saw a loss of $407 million due to attacks and exploits. While the amount represented a 32% decrease from the fourth quarter of 2023, compared to the first quarter of 2023, it is a 9% increase, demonstrating that security challenges persist.

ethereum led, accounting for 57% of the total losses, followed by BNB Chain at 17% and Arbitrum at 14%. Other chains together made up the remaining 12%.

Ripple co-founder Chris Larsen's Ripple chain account was compromised, resulting in a loss of 213 million XRP tokens valued at around $112.5 million. Another incident was with the Munchables protocol hacked, resulting in a loss of 17.4 thousand eth, equivalent to $62.5 million. Additionally, the foreign exchange sector was hit after BitForex was implicated in an exit scam with suspicious outflows worth $56.5 million across multiple blockchains.

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