DappRadar covered some exciting information for the dapp industry in the third quarter of 2024.
The market cap, the users’ activity, and trading volume all took a hit. It looks different for DeFi and NFT markets, with the daily unique active wallets (UAWs) up only by 70%. To understand where Web3 is going, look at DappRadar’s Q3-2024 report.
Record-Breaking User Activity
Despite the drop in value, dapps saw an explosion in user activity. Daily UAWs reached a record-breaking 17.2 million—an all-time high. What’s driving this? AI-powered dapps, especially in the “Other” social category, led the charge with a 71% increase in daily users. Dapps like DIN and Alaya AI were vital players in this growth. People run to innovative and intelligent solutions, and these AI-driven apps are no exception.
The gaming sector is the most significant and still dominates it. However, the social sector sustains itself, and several new types of dapps are doing fine. For example, a gamified wallet on the Telegram platform, HOT Game, and a social dapp for data protection, CARV, are experiencing growth.
Even now, web3 gaming has the largest market share, but the dapp market has started to find more diverse applications.
DeFi Stumbles, but New Players Shine
The TVL saw a drop of 5% and now stands at $160 billion. Even though the SEC gave the green light to a spot ETH ETF, Ethereum’s portion shrank to 20%, with a TVL of $95 billion. On the bright side, some up-and-comers among the new blockchains, Sui and Aptos, saw their TVLs jump by 80%.
The trend explains the desire of users to find a more efficient Ethereum alternative with faster TPS and USP of these new platforms. Especially this quarter, memecoins also helped many projects, such as Raydium and Uniswap V3. Users remained bullish about memecoins while the rest of the DeFi sector remained dormant.
NFT Market Faces Challenges
NFTs struggled in Q3-2024 as trading volumes declined to $1.6 billion, down from the previous $4 billion in Q2. Sales also reduced by 23%, painting an unpleasant picture for NFT platforms. However, after its brief absence, OpenSea is again the leading marketplace. Conversely, competitors such as Blur and Magic Eden reduced their volumes as incentives reduced and people returned to OpenSea. Sorare and Guild of Guardians caught people’s eye. Sorare’s new football NFT fits with UEFA Euro 2024, Guild of Guardians, bringing some substance to NFT gaming.
In Web3, hackers are zeroing in on dApps, and identity theft is rising. According to DappRadar, the industry lost $427 million in Q3-2024 from the exploits and hacks, with Ethereum being the most affected.
These are such ongoing vulnerabilities that even large-scale events like the loss of $230 million from the multisig wallet hack at WazirXIndia Exchange can identify.
DappRadar reveals a mixed bag for the dApp industry in Q3. User activity went up the roof, while DeFi and NFT fell in numbers. AI dapps and new generation blockchains such as Sui or Aptos prove that innovation is still alive in Web3.
However, security issues persist, and you must wait for market results to show how they resolve them. Moving ahead, users’ growth, market offering stabilization, and security will define the next phase for Web3 and dApps.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 