Web3 Users Hit Record 10M in Q2

The Q2 witnessed a record number of Web3 unique daily active wallets; however, DappRadar advised that the expansion may be due to transitory airdrops.

DappRadar, a blockchain analytics platform, reported on July 4 that the number of consumers utilizing Web3 applications reached a record high in the second quarter.

The daily unique active wallets (dUAW) attained a record high of approximately 10 million during the quarter, a 40% increase from the previous quarter.

[e]ach sector of the DApp [decentralized application] industry has experienced significant growth, contributing to an overall favorable trajectory,” according to the report.

Fantasy.top and UXLINK drove the social sector’s over 66% increase in dUAW, the most significant percentage growth. The blockchain gaming sector also experienced increased user registrations during the quarter despite a minor decrease in its overall market share compared to other industries.

The trading volume of non-fungible token (NFT) marketplaces reached $4 billion, the highest since Q1 2023. During the quarter, there were more than 14.9 million individual NFT transactions.

Magic Eden’s market share increased from 17% to 22% on the NFT marketplace, while Blur’s market share was reduced by half, dropping to 31%.

Decentralized exchanges Uniswap and Raydium experienced double-digit or more significant increases in dUAW as memecoin merchants poured into these applications. The number of users of Uniswap and Raydium increased by 80% and 134%, respectively.

The total value of cryptocurrency secured into decentralized finance applications (TVL) decreased by $7 billion, a 4% decrease from the previous quarter, despite the increasing influx of users. Tron and Arbitrum were particularly affected, with a 17% and 9% decrease in TVL, respectively.

Ethereum layer-2s Base and Linea were the outliers of the quarter, with Base’s TVL increasing by 44% and Linea’s by 420%.

DappRadar cautioned that the substantial increase in dUAW during Q2 may not be sustainable. It may have been partially motivated by “airdrop farming,” which involves actions in anticipation of receiving airdropped tokens as a reward. In June, both the Blast and zkSync airdrops took place.

The report asserted that to maintain the increase in dUAW, “it is imperative to prioritize the delivery of a superior user experience, robust roadmaps, and robust development teams.”