Web3 applications will increase by 124 percent by 2023, according to Dapradar

The dApp industry has seen unprecedented growth, with a 2023 industry report by Dapradar showing a 124 percent year-over-year increase in unique active wallets (UAW).

The report provides an overview of the changing landscape, shedding light on key NFTs, DeFi and blockchain gaming trends.

Blockchain games dominate.

Blockchain-powered games led dApp activity with a 34% dominance, boasting an average of 1.1 million UAW at the end of the year. The NFT clusters and DeFi sectors also saw growth, with new wallets for NFTs increasing 166% and a 77% increase in Total Value Locked (TVL) for DeFi reaching $103 billion.

The report also highlights key players and challenges in the performance dynamics of various blockchain chains. Nearby, Clayton and Arbitrum have seen significant growth in new user wallet creation, increasing over 600% year-over-year.

Harmony recovers from exploitation, while Solana faces a failed relationship with FTX. Hive, which hosts the trading card game Splinterlands, has reported financial difficulties and bankruptcy. Despite a 49 percent drop in transaction volume to $12.6 billion by 2023, the NFT sector has gained widespread acceptance.

Traditional companies, fashion brands and political entities have joined game studios in accepting NFTs, leading to a 445% increase in the number of NFTs sold. Platforms like Blur and OpenSea continue to dominate the market, while Pudgy Penguins bridges the gap between Web3 and Web2.

Defy Strong 2023 finish

The Dapradar report shows a good finish for the DFI sector in 2023, with a 77% increase in TVL, reaching $103 billion. Ethereum holds its strong position by commanding 57% of the smart contract platform space, with Layer-2 networks emerging as the choice due to their efficiency and low transaction costs.

The report explores the trends that will shape the future of Defin and highlights the Cancun (Denkun) fork, which is set to launch in early 2024. The report also delves into the industry's security woes, with 96% of financial losses due to exploitation and hacking falling to $1.9 billion. 17.3% increased frequency.

Carpet pulling and deceptive practices remain the most common forms of exploitation. In particular, 46% of incidents occurred on the BNB Chain, while Ethereum was the second most affected at 36%.

The report concludes that the dApp industry promises to shape the industry by 2024, showing resilience in the face of challenges as emerging trends such as SocialFi and Zig-Rolls emerge.