Near, Klaytn, and Arbitrum have seen significant growth in creating new user wallets, with annual increases exceeding 600%.
The dApp industry has experienced unprecedented growth, with DappRadar’s 2023 industry report revealing a 124% increase compared to the same period last year in Unique Active Wallets (UAW).
The report provides an overview of the dynamic landscape, shedding light on trends in NFT gaming, DeFi, and the blockchain industry.
Blockchain Gaming Dominance
Blockchain-supported games have led in dApp activity with a dominance rate of 34%, averaging 1.1 million UAW by the end of the year. NFT collections and the DeFi sector have also witnessed growth, with the number of new NFT wallets increasing by 166%, and the Total Value Locked (TVL) for DeFi rising by 77% to reach $103 billion.
The report also delves into the dynamics of various blockchain networks, revealing standout performers and those facing challenges. Near, Klaytn, and Arbitrum have experienced the highest growth in creating new user wallets, with an increase of over 600% compared to the same period last year.
Harmony has rebounded after a hack, while Solana has faced repercussions from its association with FTX. Hive, the company behind the card game Splinterlands, has reported financial difficulties and losses. Despite a 49% decrease in trading volume to $12.6 billion, the NFT sector in 2023 has seen widespread adoption.
Traditional companies, fashion brands, and political organizations, along with game studios, have joined in using NFTs, leading to a 445% increase in NFT sales. Platforms like Blur and OpenSea continue to dominate the market, with Pudgy Penguins bridging the gap between Web3 and Web2.
Strong Finish for DeFi in 2023
DappRadar’s report also shows promising results for the DeFi sector in 2023, with TVL increasing by 77% to reach $103 billion. Ethereum maintains its stronghold, accounting for 57% of the smart contract platform space, while Layer 2 networks emerge as a priority due to their efficiency and lower transaction costs.
The report explores trends shaping the future of DeFi and highlights the upcoming Fork Cancun (Dencun) set to launch in early 2024. It also delves into the industry’s security challenges, with a 96% decrease in financial damages to $1.9 billion due to mining and hacking, but with a 17.3% increase in frequency.
Rug pulls and fraudulent behavior remain the most common exploits, with 46% of incidents occurring on the BNB Chain, where Ethereum is the second most affected with 36%.
The report concludes by stating that the dApp industry demonstrates resilience when facing challenges posed by emerging trends like SocialFi and zk-rollups, promising to shape the industry in 2024.
