According to a Jan. 11 report from blockchain analytics platform DappRadar, the number of unique active wallets (UAWs) interacting with Web3 apps increased 124% in 2023. Polygon, Near, Klaytn and Arbitrum saw UAW increases, while Harmony, Solana and Hive saw a decline in users.
Top 10 blockchains according to UAW in 2023. Source: DappRadar.
UAW is a measure of the number of wallets interacting with Web3 applications, also known as decentralized applications (DApps), during a specific period of time.
Throughout the year, an average of 4.2 million UAWs interacted with these apps daily, more than double the number of users from the previous year. Non-fungible token (NFT) products led the growth, achieving a 166% increase over 2022, while decentralized finance (DeFi) came in second with a 112% increase. According to the report, social media apps saw a 29% increase thanks to “leading protocols” Friend.tech, Lens Protocol and Galxe.
Near, Klaytn and Arbitrum have the highest growth rates among all blockchain networks. Near is up 1,902%, Klaytn 1,099% and Arbitrum 624%. Some of the top DApps on these networks include loyalty rewards platform Kai-Ching, fitness app SuperWalk, and decentralized exchange Uniswap v3.
Harmony, Solana and Hive were the platforms with the largest user declines during the year. Harmony's UAW is down 96%, Solana's is down 76% and Hive's is down 68%. The report attributes Harmony's decline in activity to the bridge hack in June 2022 and is unlikely to recover in 2023.
Solana faces similar problems due to its association with FTX. However, Solana “saw an impressive recovery in the final months of 2023”.
In the case of the Hive network, the report speculates that the loss of users could be due to “lack of financial targets and significant loss reporting.” The Hive network is host to Splinterlands, the Web3 game with the 11th ranked UAW, according to DappRadar.
The report provides further confirmation that activity on the blockchain network has increased over the past year. In October, social media app Stars Arena attracted more than 10,000 UAW to the Arbitrum network. In November, the Ethereum network collected more than $54.3 million in fees in just one week due to a spike in the number of transactions sent.