SNEAK PEEK
- Web3 applications surged in 2023, with Near, Klaytn, and Arbitrum leading the growth, showing increases of up to 1,902%.
- Harmony, Solana, and Hive saw declines in user engagement due to various challenges, including security issues and financial shortfalls.
- NFTs and DeFi applications dominated the space, with a significant increase in digital collectibles and decentralized financial solutions.
The dynamic landscape of Web3 applications experienced a notable surge in 2023, as evidenced by the recent findings of DappRadar, and this year marked a significant increase in the engagement of unique active wallets (UAWs) with decentralized applications (DApps), showcasing a robust growth of 124%. This uptrend reflects the burgeoning interest and participation in the Web3 ecosystem.
Blockchain platforms Near, Klaytn, and Arbitrum led this remarkable growth, each demonstrating impressive expansion rates. Near skyrocketed with a staggering 1,902% growth, while Klaytn and Arbitrum followed with 1,099% and 624% increases, respectively. These platforms have been at the forefront, hosting popular DApps such as Kai-Ching, SuperWalk, and Uniswap v3, which have captivated users with their innovative offerings.
Conversely, not all platforms shared this upward trajectory. Harmony, Solana, and Hive experienced notable declines in their user bases. Harmony’s UAWs plummeted by 96%, heavily impacted by the bridge exploit of June 2022 and its subsequent recovery struggles. Solana, closely linked with the FTX, witnessed a 76% drop but managed to mitigate losses towards the end of the year. Hive’s 68% decline was speculated to stem from financial shortfalls, despite hosting Splinterlands, a top-ranked Web3 game.
In this age of decentralized applications, NFT products led with a 166% growth, indicating a robust appetite for digital collectibles and art. DeFi applications were slightly behind, recording a 112% increase, signifying sustained interest in decentralized financial solutions. Social media applications saw a modest 29% gain, driven by protocols like Friend: tech, Lens Protocol, and Galxe.
The year also saw specific events driving significant traffic to these networks. Stars Arena, a social media app, brought over 10,000 UAWs to Arbitrum in October. November witnessed the Ethereum network amassing over $54.3 million in fees in a single week, fueled by a surge in transaction activity.
This growth narrative underscores the evolving and dynamic nature of the blockchain and Web3 spaces. It highlights the potential of these technologies and the challenges and opportunities faced by different platforms in adapting to an ever-changing digital landscape. As the ecosystem continues to expand and evolve, observing how these trends develop in the coming years will be interesting.
