The latest report from DappRadar highlights a slew of bullish indicators in the decentralized application (DApp) and Web3 sector for Q1 2024.
DApps saw a quarter-over-quarter usage increase of 77% on the whole, with a total daily active user wallet count of 7 million. This shows an increase of approximately 40% since February 2024, indicating the highest adoption rates since 2022.
According to DappRadar, the influx of new users “signals a robust recovery and the end of the longest bear market we’ve experienced.”
These perceived gains come on the heels of a banner quarter for the world’s most popular cryptocurrency, with Bitcoin reaching new all-time highs on several occasions in the wake of the United States Securities and Exchange Commission’s approval of numerous spot Bitcoin exchange-traded fund applications.
Related: New record: Bitcoin ETFs hit $1B in daily inflow
As Cointelegraph recently reported, much of this recent growth in the DApp sector has been driven by a renewed interest in nonfungible tokens (NFTs) throughout 2023 after a usage decline in 2022.
Wallet counts for unique active daily users rose to 4.8 million in 2023, more than double the previous year’s users. According to DappRadar, nonfungible tokens (NFTs) posted the highest gains last year, with a 166% increase over 2022.
The NFT sector has remained strong through 2024 so far. According to DappRadar, the first quarter saw a 50% surge in trading volume, at $3.9 billion, and a 13% lift in sales to $11.6 million. This was the strongest quarter for NFTs since Q1 2023.
In the first quarter of 2024, however, the social vertical has been at the front of the sector’s growth, with a 324% surge in active wallets. Decentralized finance, gaming and NFTs still performed well, but the uptick in activity for social media DApps could indicate an industry trend.
Finally, while nearly every indicator shows positive momentum for Web3, there is some bad news. Per the report, losses to exploits and hacks are up 9% year over year. This is down 32% over Q4 2024, but losses totaled $407 million for Q1 2024 alone.
