Web3 Apps Surge 124% in 2023: Near, Klaytn, Arbitrum Lead

During 2023, the number of unique active wallets (UAW) that interacted with Web3 App climbed by 142 percent, according to research published on January 11 by the blockchain analytics platform DappRadar.

Near, Klaytn, and Arbitrum set the pace for growth throughout the year, while Harmony, Solana, and Hive had a decrease in the number of users.

During a specific period, the number of wallets interacting with a Web3 App, also known as a decentralized application (DApp), is referred to as the user activity work (UAW).

An average of 4.2 million UAWs interacted with these Web3 apps daily throughout the year, which is more than quadruple the number of users that were present in the previous year.

With a growth rate of 166% over 2022, nonfungible token (NFT) products led the way in terms of growth, while decentralized finance (DeFi) products came in second with a growth rate of 112%.

According to the report, “leading protocols” such as Friend.tech, Lens Protocol, and Galxe contributed to the substantial increase of 29% that social networking applications experienced.

When compared to all blockchain networks, Near, Klaytn, and Arbitrum had the fastest growth rates. Near had a rise of 1,902%, Klaytn saw a rise of 1,099%, and Arbitrum saw a rise of 624%.

Some of the most popular decentralized applications (DApps) on these networks are the Kai-Ching loyalty rewards platform, the SuperWalk fitness app, and the Uniswap v3 decentralized exchange.

Harmony, Solana, and Hive incurred the most significant losses of the year. Hive’s UAW dropped by 68%, while Harmony’s dropped by 96%. Solana’s UAW dropped by 76%.

The analysis attributes Harmony’s decline to the bridge exploit that occurred in June 2022 and the company’s subsequent inability to recover. Solana encountered similar challenges due to its relationship with FTX.

Nevertheless, the report asserted that Solana “saw an impressive recovery during the last months of 2023,” which enabled the company to conclude the year with fewer losses than it would have otherwise incurred.

According to the research, the Hive network may have seen a loss of users as a result of “missing financial targets and reporting significant losses.”

Researchers presented one possible explanation for this phenomenon. DappRadar determined that the Hive network hosts the Web3 App game Splinterlands, ranked eleventh after UAW.

The findings of this analysis provide additional evidence that the level of activity on blockchain networks has increased over the past year.

In October, over ten thousand users were brought to the Arbitrum network via the social networking app Stars Arena. The Ethereum network collected over $54.3 million in fees in a single week during November.

An increase in the number of submitted transactions directly caused the collection of over $54.3 million in fees by the Ethereum network in a single week during November.