Web3 Apps See 124% Growth in 2023, Led by Near, Klaytn, Arbitrum — DappRadar

In the year According to a January 11 report from blockchain analytics platform DappRadar, the number of unique wallets (UAW) linked to Web3 applications will increase by 124% by 2023. Nearby, Clayton and Arbitrum led the year with growth, while Harmony, Solana and Hive saw declines in users.

UAW is a measure of how many wallets interact with a Web3 application, also known as a decentralized application (DApp), over a period of time.

During the year, an average of 4.2 million UAWs interacted with these apps daily, more than double the number of users last year. Decentralized token (NFT) products lead the growth path with a 166 percent increase by 2022, while decentralized finance (DeFi) is second with a 112 percent increase. According to the report, social media apps posted a 29% gain, thanks to “Leading Protocols” Friend.tech, Lens Protocol and Galxe.

Nearby, Clayton and Arbitrum had the highest growth rates of all blockchain networks. Near 1,902% increase, Klaytn 1,099% and Arbitrum 624%. Some of the top DApps on these networks include loyalty rewards platform Kai-Ching, fitness app SuperWalk, and decentralized exchange Uniswap v3.

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Harmony, Solana and Hive were the year's biggest losers. Harmony's UAW is down 96 percent, Solana's is down 76 percent and Hive's is down 68 percent. The report attributed Harmony's decline to June 2022 bridge exploitation and failure to recover next year.

Solana had similar problems with FTX. However, Solana “saw a remarkable recovery in the final months of 2023,” allowing it to end the year with a smaller loss than last year, the report said.

In the case of Hive Networks, the report speculated that losses to users could be attributed to “missing financial targets and incurring significant losses.” Hive Networks is the host of Splinterlands, the 11th-ranked Web3 game in the UAW, according to Dapradar.

The report provides further confirmation that activity on blockchain networks has increased over the past year. In October, the social media app Stars Arena drove more than 10,000 UAW to the Arbitrum network. In November, the Ethereum network collected more than $54.3 million in payments in one week as the number of incoming transactions increased.