Dapp Sector Boom in Q1 2024: NFT Interest Surge Amid Rising Cybersecurity Concerns
Summary:
The Dapp/Web3 sector saw several positive trends in Q1 2024, including a 77% quarter-over-quarter growth and 7 million daily active user wallets, according to a report from DappRadar. Bitcoin also experienced successes, following multiple Bitcoin spot ETF applications' approval by the SEC. Much of the Dapp sector's growth was driven by renewed interest in non-fungible tokens (NFTs), which notably surged by 166% in 2023 and remained strong in 2024. However, despite the promising indicators, the report also noted a 9% year-over-year increase in losses due to hacks and exploits, amounting to $407 million in Q1 2024.
In the first quarter of 2024, the industry of decentralized applications (Dapps) displayed several encouraging signs, according to the newest report by DappRadar. The usage rate of Dapps increased by 77% quarter-over-quarter, while the count of daily active user wallets reached seven million, a rise of roughly 40% since February 2024. This upsurge represents the most significant adoption rate since 2022. DappRadar suggests this flood of newcomers denotes a strong rebound and the conclusion of the lengthiest downturn ever.
This promising performance follows a successful quarter for Bitcoin, the most renowned digital currency, which set new price records multiple times, buoyed by the U.S. Securities and Exchange Commission's acceptance of multiple Bitcoin spot ETF applications.
As Cointelegraph pointed out recently, the resurgence in the Dapp field has been substantially attributed to the revived fascination in non-fungible tokens (NFTs). Active daily user wallet figures surged to 4.8 million in 2023, over twice the total of the previous year. DappRadar also reports that NFTs saw the most significant growth last year, recording a staggering 166% boost from 2022.
This rise continued into 2024, when the NFT market saw a 50% increase in trading volume, reaching $3.9 billion, and a 13% rise in sales, amounting to $11.6 million in the first quarter. According to DappRadar, NFTs haven't been this robust since Q1 2023.
However, in 2024's initial quarter, the Dapp sector's growth was particularly driven by the social vertical, accounting for a remarkable 324% rise in active wallets. Though DeFi, gaming, and NFTs still showed impressive results, the heightened usage of social media Dapps could be indicative of an emerging industry pattern.
Nonetheless, the report also warns of increasing losses from exploits and hacks, which have spiked by 9% year-on-year. Although this is a decline of 32% from Q4 2024, the losses still total a worrying $407 million in Q1 2024 alone.
Published At
4/4/2024 11:37:25 PM
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