Dapp Industry Report: November 2023 Unveiled

Dapp Industry Report: November 2023 Unveiled

As the Dapp industry continues to evolve, the month of November has brought forth noteworthy trends and developments. Here’s a comprehensive overview (the analytics are based on the DappRadar Report) of the key highlights and shifts in the decentralized application landscape:

Dapp Industry Overview: Soaring to New Heights

The Dapp industry has embarked on a robust and bullish trajectory this November, reaching a significant milestone of 3.4 million daily Unique Active Wallets (dUAW). This marks a remarkable 7% growth from the previous month, setting a new peak for the year. This surge aligns with the mounting excitement and expansion observed recently, with speculations of a potential new bull run as we approach the holiday season.

In terms of industry verticals, gaming continues to lead the pack, boasting an impressive 1.2 million dUAW, reflecting a 14% increase from the previous month. Following closely is the DeFi sector, with 684,350 dUAW, marking a substantial 9% growth.

Dapp Industry Overview
Industry Dominance (%) by UAW in the Dapp Ecosystem

The NFT sector has experienced a notable upward trend, showcasing a 13% increase this month with 502,237 dUAW. However, the Social sector has witnessed a relative decrease, reaching 214,925 dUAW compared to other sectors.

Blockchain Networks:

  • zkSync Era has emerged as a frontrunner, closely followed by Near.
  • BNB Chain, although third in UAW, leads in the number of dapps integrated on DappRadar.

KAI-CHING Takes the Spotlight

November 2023 brings diverse trends to the forefront, particularly among the top 10 dapps ranked by Unique Active Wallets (UAW). This month’s data underscores a resurgence in industry diversification.

KAI-CHING becomes the most used dapp
Top 10 Dapps by UAW

Two dapps on the Near blockchain have notably outperformed Bitcoin and Ethereum in daily transactions and active addresses. KAI-CHING, a shopping app, takes the lead, garnering attention through its partnership with retail giant Cosmose AI. Initiated in April, this collaboration leverages artificial intelligence for enhanced shopping experiences, resulting in over 1 million transactions.

Sweat Economy, another Near-based dapp, secures the third spot, with a substantial U.S. launch in September contributing to closing November with over 1 million UAW.

Blockchain gaming is experiencing a renewed momentum, with motoDEX, a blockchain game, making its debut in the top 10 UAW dapps. This shift signals a significant milestone for gaming in the Web3 space.

DeFi TVL Surges; Ethereum Dominance Holds Strong

In November 2023, the Total Value Locked (TVL) in the DeFi ecosystem witnessed a notable uptrend, soaring from $77 billion to $86 billion. This 12% increase indicates a revitalized market sentiment, potentially signaling the early stages of a bull run. Ethereum continues to assert its dominance, with a substantial 20% jump in TVL, reaching $60.56 billion. Solana, experiencing a 75% increase in TVL, showcases a remarkable rebound.

Total Value Locked of the Top Blockchain
Total Value Locked of the Top Blockchain

A key development is the introduction of Blast, an Ethereum Layer-2 scaling solution. Despite being in its nascent stages, Blast attracted over $500 million in TVL within its first week, surpassing competitors like zkSync Era.

NFT Trading Surges Toward $1 Billion

The NFT industry maintains its upward momentum, with trading volume nearing $1 billion in November. The trading volume surged by an impressive 125%, with a 5% rise in sales count, totaling 3.6 million transactions. The average transaction value increased significantly from $126 to $270, reflecting a 114% surge.

NFT Trading Volume and Sales Count
NFT Trading Volume and Sales Count

This surge in interest and investment in NFTs correlates with the bullish sentiment in the broader crypto market. While blue-chip NFT collections experience a recovery, the evolving use cases of NFTs hint at potential changes in this dynamic.

OKX Emerges as the Second-Largest NFT Marketplace

Examining the top NFT marketplaces reveals significant shifts in market dominance. Blur leads with a commanding 35% share of the NFT trading volume, followed by OKX at 32%, securing the second position. OpenSea maintains its third spot, dominating in the number of traders.

Top NFT Marketplaces by Volume
Top NFT Marketplaces by Volume

This data indicates a dynamic landscape, with platforms like OKX gaining prominence in the NFT sector.

Blockchain Gaming’s Dominance in Dapp Industry

In November 2023, the blockchain gaming sector demonstrated robust growth, reaching 1.2 million daily unique active wallets, signifying a 14% increase. With a substantial 34% share of the Web3 space, blockchain gaming remains a fundamental pillar in the decentralized ecosystem.

Top 5 NFT collections by Traders
Top 5 NFT collections by Traders

The deepening integration of NFTs within the gaming world signifies an evolving relationship, further explored in our upcoming gaming-specific report.

Security Incidents: A Dark Side to Growth

Despite the industry’s bullish resurgence, November witnessed a spike in hacks and exploits, resulting in a staggering $311 million in losses across 19 incidents. BNB Chain and Ethereum were significantly affected, with Poloniex and Heco Bridge incidents being the most substantial.

Exploits and Hacks in the Dapp World
Exploits and Hacks in the Dapp World

The incidents underscore the need for heightened security measures and vigilant risk management strategies in the rapidly evolving digital environment.

Closing Words: Balancing Growth and Security

As we conclude the Dapp Industry Report for November 2023, the sector reflects a robust resurgence. The increase in daily unique active wallets, substantial growth in DeFi’s total value locked, and the sustained upward trend in the NFT market indicate a vibrant and expanding industry.

While innovation and growth are evident, the rise in hacks emphasizes the need for a balanced approach. Ensuring user safety and confidence will be critical for the continued upward trajectory of the dapp industry. As we anticipate future developments like the Bitcoin halving and evolving blockchain technologies, the industry stands at a promising yet critical juncture. Stay tuned for more insights and analysis as the Dapp landscape continues to evolve.

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