According to a report shared by blockchain data analysis platform DappRadar on January 11th, the number of unique active wallets (UAW) interacting with Web3 applications increased by 124% in 2023. Popular blockchain networks Near, Klaytn, and Arbitrum led the growth, while Harmony, Solana, and Hive saw a decrease in user numbers.
Noteworthy Details of 2023
Unique active wallets (UAW) data is known as a metric that shows how many wallets interacted with a Web3 application, also known as a decentralized app (DApp), within a specific time frame.
Throughout the year, an average of 4.2 million UAWs interacted with these applications daily, reaching more than twice the number of users compared to the previous year. NFT products led the growth with a 166% increase, while decentralized finance (DeFi) followed with a 112% increase. According to the report, social media applications such as Friend tech, Lens Protocol, and Galxe, which are leading protocols in the Web3 space, recorded a 29% increase.
Near, Klaytn, and Arbitrum networks had the highest growth rates among all blockchain networks. Near saw a 1,902% increase, Klaytn a 1,099% increase, and Arbitrum a 624% increase. Some of the top DApps operating on these networks included the loyalty rewards platform KAI-CHING, the fitness application SuperWalk, and the decentralized exchange Uniswap V3.
The Losing Networks of 2023
Harmony, Solana, and Hive were the ecosystems that lost the most users this year. Harmony’s UAW decreased by 96%, Solana’s by 76%, and Hive’s by 68%. The report attributed Harmony’s decline to a bridge exploit in June 2022 and its inability to recover in the following year. Solana faced similar issues due to its relationship with FTX. However, according to the report, Solana experienced an impressive recovery in the final months of 2023, which allowed it to end the year with fewer losses than it would have otherwise.
Hive network, according to the report, might have lost users due to missing financial targets and reporting significant losses. The DappRadar team notes that the Hive Network hosts Splinterlands, the 11th top Web3 game in terms of UAW.
The report provides more data indicating increased activities across blockchain networks over the past year. In October, the social media application Stars Arena successfully directed over 10,000 UAWs to the Arbitrum network. In November, the Ethereum network generated over $54.3 million in commission fees in a single week due to an increase in transaction volume.
