Decentralized apps proliferated in 2023, indicating a Web3 boom in terms of the number of unique active wallets: report

The Web3 business as a whole had a lot of ups and downs in 2023, but despite all of the chaos, it was still able to record a boom and get more attention. According to a new research by DappRadar, in 2023, the number of unique active wallets (UAW) that interacted with Web3 increased by 124 percent. Furthermore, 2,985 new decentralized applications (dApps) were added to the total last year.

In the Web3 industry, Unique Active Wallets is a metric. It shows how many cryptocurrency wallets throughout time observed transactions of digital assets or were connected to dApps. 4.2 million UAWs on average used dApps in 2023; dApps operate on blockchain networks as opposed to conventional servers.

In 2023, UAW ranked the top ten blockchains, with Binance’s BNB Chain at the top. According to the DappRadar analysis, Wax, Near, zkSync-Era, Polygon, Ethereum, Abritrum, Hive, Klaytn, and Solana were rated second through tenth on the list, in that order.

The interest in NFT collections has grown as more wallets are trading and using these assets—a 166 percent rise. According to the research, games backed by blockchain technology are still leading the way in terms of dApp activity, with an average of 1.1 million UAW at year’s end and an annual dominance of 34%.

In the context of Decentralised Finance (DeFi), 2023 proved to be a rather productive year overall. With Ethereum leading the way with a 57 percent stake, the Total Value Locked (TVL) in DeFi increased by 77 percent in 2023 to $103 billion (about Rs. 8,54,454 crore).

With over 860,000 monthly UAW, PancakeSwap is expected to emerge as the most popular dApp in 2023 and be acknowledged as the leader in the DeFi market by the DappRadar research. A decentralized cryptocurrency exchange known for its low costs and quick transaction processing is PancakeSwap.

The research also said that the amount of money lost to hackers and vulnerabilities in the crypto industry as a whole dropped by 96%.