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Dapp Industry Registered Significant Growth in 2023: Report

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Dapp Industry Registered Significant Growth in 2023: Report
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The decentralized application (Dapp) market saw significant growth last year according to the latest report released by data aggregator DappRadar. Daily unique active wallets (UAWs) kept growing throughout the year across various sectors including non-fungible tokens (NFT), decentralized finance (DeFi), social, and more. All in all, 2023 closed at 4.2 Million daily UAWs.

Blockchain Gaming Dominated Dapp Market

The sector registered 124 percent growth on a year-on-year (YoY) basis. NFTs emerged as the leader with 671,101 daily UAW, recording a 166 percent increase over the preceding year. On the other hand, the DeFi sector grew by 112 percent while the social sector grew by 29 percent.

In terms of transaction count, no one came close to DeFi market. Transactions in the segment rose by 537 percent, from 791 Million to 5 Billion between 2022 and 2023. Gaming lost some percentage but remained on top in the context of total transactions, registrering 6.9 Billion during the year. The social sector followed DeFi closely with a 305 percent growth.

Looking at the performance of blockchains, Near Protocol (NEAR) grew by almost 1,900 percent, followed by Platon (LAT) with 1,838 percent, Celo (CELO) with 1,109 percent, Klaytn (KLAY) with 1,099 percent and Arbitrum (ARB) with 624 percent. Popular blockchain Ethereum (ETH) faced a downturn, losing 16 percent daily UAWs. Currently, it is holding 94K on the platform.

Other losers include Harmony (ONE) with 96 percent, Solana (SOL) with 76 percent, Hive (HIVE) with 68 percent, and more. The DeFi sector had a solid finish in terms of total value locked (TVL). The market reached $103 Billion in TVL in 2023. The report notes that “A key trend in 2023 was the reduced demand for “general purpose” alternative layer-1s (L1s) due to a moderation in on-chain activity over the last couple of years.”

The NFT market continued to suffer as the year saw a trading volume of $12.6 Billion, almost half of what it registered in 2022. Notably, sales count grew by over 500 percent in 2023. Yuga Labs, creator of blue chip NFTs like Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Otherdeeds, and more, dominated the sector.

Among other sectors that appeared and disappeared in 2023, blockchain gaming held its own. The segment dominated 34 percent of the Dapp market with Q4 2023 seeing a daily average growth of 1.1 Million unique active wallets. However, a report by data aggregator CoinGecko shows that a majority of Web3 games are dead already.

The Dapp industry appears to have moved up in terms of security given that the sum lost through exploits and hacks has reduced by 96 percent during 2022 and 2023. While the former year lost $48 Billion, the latter lost just close to $2 Billion.

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