The Unique Active Wallets (UAW) metric, which tracks the number of wallets interacting with Web3 applications or decentralized applications (DApps), showed an average daily interaction of 4.2 million UAWs over the past year. This figure represents more than a twofold increase from the previous year. Non-fungible tokens (NFTs) led this growth with a 166% increase, followed by decentralized finance (DeFi) applications, which saw a 112% rise. Social media applications grew by 29%, bolstered by platforms such as Friend.tech, Lens Protocol, and Galxe.
Among blockchain networks, Klaytn and Arbitrum experienced the highest growth rates. Specifically, Near's growth was at 1,902%, Klaytn's at 1,099%, and Arbitrum's at 624%. Popular DApps on these networks include the loyalty rewards platform Kai-Ching, the fitness application SuperWalk, and the decentralized exchange Uniswap v3.
Conversely, Harmony, Solana, and Hive saw significant declines. Harmony's UAW decreased by 96%, Solana's by 76%, and Hive's by 68%. Harmony's downturn is attributed to a bridge breach in June 2022 and a lack of recovery in the following year. Solana's struggles were linked to its association with FTX, though it managed an impressive recovery in the final months of 2023, mitigating its overall losses.
The report suggests Hive's user attrition might be due to unmet financial goals and substantial losses. Hive hosts the game Splinterlands, ranked 11th among Web3 games by DappRadar.
Overall, the report highlights an uptick in blockchain network activities over the past year. For instance, in October, the social media app Stars Arena brought over 10,000 UAW members to the Arbitrum network. In November, the Ethereum network saw a surge in transactions, collecting more than $54.3 million in fees within a week.
