The dApp industry has seen 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 and sheds light on key trends in nft, DeFi, and blockchain gaming.
Blockchain games dominate
Blockchain-powered games took the lead in dApp activity with a 34% dominance, averaging 1.1 million UAW at the end of the year. The nft collections and DeFi sectors also saw growth, with a 166% increase in new wallets for NFTs and a 77% increase in total value locked (TVL) for DeFi, reaching $103 billion.
The report also nft-web3-games” data-wpel-link=”external” target=”_blank”>deepen into the performance dynamics of various blockchain chains, revealing standout performers and those facing challenges. Near, Klaytn, and Arbitrum saw the greatest growth in new user wallet creations, with increases exceeding 600% year-over-year.
Harmony recovered from an exploit, while Solana faced the consequences of its association with FTX. Hive, which hosts the trading card game Splinterlands, reported losses and financial difficulties. Despite a 49% decline in trading volume to $12.6 billion, the nft sector in 2023 saw widespread adoption.
Traditional businesses, fashion brands, and political entities joined game studios in embracing NFTs, leading to a 445% increase in the number of NFTs sold. Platforms like Blur and OpenSea continued to dominate the market, with Pudgy Penguins bridging the gap between Web3 and Web2.
DeFi's strong finish in 2023
The DappRadar report also reveals a good finish for the DeFi sector in 2023, with a 77% increase in TVL, reaching $103 billion. ethereum maintains its strength, dominating 57% of the smart contract platform space, while Layer 2 networks emerged as a preference due to efficiency and lower transaction costs.
The report explores the trends that will shape the future of DeFi and highlights the upcoming Cancun (Dencun) fork scheduled for early 2024. The report also delves into the industry's security challenges, with a reduction of 96% to 1.9 billion of dollars in financial losses due to exploits and hacks, but a 17.3% increase in frequency.
Abuse and deceptive practices remained the most common type of exploit. Notably, 46% of the incidents occurred on the BNB chain, with ethereum being the second most affected at 36%.
The report concludes by stating that the dApp industry is showing resilience in the face of challenges with the emergence of new trends, such as SocialFi and zk-rollups, promising to shape the industry in 2024.
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