Blockchain analytics firm, DappRadar has published its Q3 Dapp Industry Report, which shows how certain segments within the dapp industry appears to have found consolidation levels months after surviving the collapse of Terra.
The report shines a spotlight on how the industry shows early signs of recovery after it has felt the brunt of a widespread turmoil in the cryptocurrency market. Notably, it reveals the number of daily Unique Active Wallets (UAW) that interact with blockchain dapps rose 12 percent to 1.81 million on average.
The report also shows how the gaming sector remain a silver lining for the future of dapps amid the doom and gloom of a prolonged crypto winter. Specifically, blockchain gaming sector has increased 8% (912K) from the previous month, and its dominance is still over 48%. This is no surprise, as we have seen multiple blockchain games with truly immersive game mechanics that take entertainment to the next level.
Compared to the previous quarter, UAW Flow increased by 79%, reaching almost 50,000 unique active wallets in September. In addition, ImmutableX boosted its unique active wallets during the third quarter, with a 30% rise from August to September. Polygon, is on the same upward trajectory as Flow and ImmutableX, as measured by the number of unique active wallets, and had a 17% growth this month (148K).
In a marked contrast, DeFi had a decrease of 3% (472K) from the previous month and is still below half a million. In a similar vein, the NFT market shrunk 67% from the previous quarter with only $2.75 billion generated by NFT trades.
The decline in cryptocurrency activities is visible as well. The DappRadar reports makes a note that Ethereum remains on a downward trend, and this month the number of unique active wallets decreased by 29% (60K). In addition to Ethereum, BSC decreased its UAW by 6% (356K) and Solana by 33% (65K) in August.
Even though DeFi is still suffering when analyzing active wallets, the total value locked (TVL), the basis for measuring the efficiency of dApps, shows signs of recovery with a 2.9% increase from the previous quarter and presently sits at $69 billion. However, this is not an alarming increase considering that this amount was $250 billion less than a year ago, the report notes.
Ethereum remains the most dominant chain with its dominance to 69% with $48 billion, a 3.17% growth from Q2. BNB is once again the runner-up with $6.6 billion in TVL, a 10.89% growth from Q2. Its dominance also grew, from 8% from last quarter, to almost 10% in this one.
Other highlights show new entries as competitors in the NFTs marketplace, with the dominance of OpenSea falling as marketplace peers Magic Eden and X2Y2 gain ground. While the NFT financial metrics may signal a debacle, additional on-chain data such as the sales count and the number of traders tell another story.
The DappRadar report depicts the factors that are affecting the blockchain ecosystem, using metrics and data to create an understanding of the latest trends. The report sums up different market scenarios to provide a basic overview of the market with respect to DeFi, NFTs, gaming and everything in between.
