Key Points
- Daily active wallets in the dapp industry surged 70% to 17.2 million in Q3 2024, driven largely by AI-related dApps, despite declines in DeFi and NFT sectors.
- The NFT market faced significant challenges with trading volume plummeting 60% to $1.6 billion, while DeFi’s total value locked dropped 5% to $160 billion.
AI Dapps Lead Growth as Traditional Sectors Face Headwinds
The dApp industry experienced a surge in user activity during Q3 2024, with daily unique active wallets (UAWs) reaching an all-time high of 17.2 million, according to DappRadar’s latest report. This 70% increase from the previous quarter was primarily fueled by the explosive growth of AI-related dapps, which saw a 71% rise in daily UAWs, averaging 4.3 million users.
Despite this overall growth, traditional sectors like DeFi and NFTs faced significant challenges. The DeFi sector saw its total value locked (TVL) decrease by 5% to $160 billion, while the NFT market experienced a sharp 60% decline in trading volume, dropping to $1.6 billion.
Emerging Chains and Platforms Gain Traction
While Ethereum maintained its dominance in the DeFi space with a TVL of $95 billion, newer layer-1 blockchains like Sui and Aptos emerged as standout performers. Both chains recorded impressive 78% growth in TVL since Q2, signaling growing investor interest in alternative ecosystems offering innovative solutions and faster transaction speeds.
In the NFT marketplace, OpenSea reclaimed its leadership position across key metrics, including trading volume, number of sales, and active traders. This resurgence came at the expense of competitors like Blur and Magic Eden, which saw significant declines in activity.
Security Concerns Persist Amid Industry Growth
Despite the positive trends in user engagement, the Web3 space continued to grapple with security issues. Q3 2024 saw $427 million in losses due to exploits and hacks, a marginal 0.57% decrease from the previous quarter. Ethereum remained the primary target, accounting for 57% of all reported incidents, followed by BNB Chain at 24%.
Notable security breaches included a $230 million exploit of the WazirXIndia Exchange multisig wallet and a $55.43 million phishing attack on a DeFi user. These incidents underscore the ongoing need for robust security measures and user education in the rapidly evolving Web3 landscape.
As the dapp industry moves into Q4 2024, the contrast between surging user activity and challenges in established sectors highlights the dynamic nature of the space. The rise of AI-driven dapps and the performance of emerging blockchain platforms suggest a shifting landscape, while persistent security concerns emphasize the need for continued vigilance and innovation in protective measures.
