DApp activity will see an increase between Bitcoin’s all-time highs in Q1 2024

Decentralized applications (dApps) showed 77% activity in the first quarter of 2024 and a total daily active user wallet count of 7 million.

This growth comes as Bitcoin hits an all-time high in Q1 2024 and reaches over $73,000.

The resurgence of DApp activity

According to Dapradar, the recent increase in new users shows a strong recovery, indicating the end of the longest bear market experienced.

The growth is attributed to the approval of US spot Bitcoin exchange-traded funds (ETFs), which sent BTC to several new all-time highs.

Dapradar in the year Following a decline in usage in 2023, 2023 has seen renewed interest in non-dated tokens (NFTs). The unique number of everyday users' wallets will rise to 4.8 million in 2023, doubling from 2022. In addition, NFTs saw a significant growth, 166 percent compared to last year.

This strength holds good through 2024, with Dapradar seeing a 50% increase in turnover to $3.9 billion and a 13% increase in sales to $11.6 million in Q1 2024.

The blockchain game continues to lead in Web3, commanding a 30% dominance and attracting nearly 2.1 million daily unique active wallets, a 59% increase from the previous quarter. NFT game collections also performed well, with top sellers in Q1 2024 being Gods Unchained with 1 million, Axie Infinity with 459K and Arena of Faith with 19.5K.

However, in the first quarter of 2024, a 324 percent increase in active wallets led the social trend in the sector's growth. While decentralized finance, gaming and NFTs are performing well, the rise of social media dApps is an emerging trend in the industry.

Hackers and exploits persist

In the year In the first quarter of 2024, the blockchain space experienced a loss of $407 million due to hacking and exploitation. While the rate is a 32% decrease from Q4 2023, it is a 9% increase compared to the first quarter of 2023, indicating that security challenges remain.

Ethereum is the leader, with 57% of the total losses, followed by BNB Chain with 17% and Arbitrum with 14%. Other chains make up the remaining 12%.

Ripple co-founder Chris Larsen's Ripple chain account was hacked, resulting in the loss of 213 million XRP tokens worth $112.5 million. Another incident resulted in a loss of 17.4k ETH, or $62.5 million, due to the hacked Munchables protocol. Additionally, the exchange sector was hit after BitForex was involved in an exit scam involving suspicious flows of $56.5 million across multiple blockchains.