Blue-Chip NFTs Spark a Resurgence in the NFT Industry

DappRadar’s Dapp Industry Report for November 2024

The dapp industry experienced a significant boost in November, driven by a combination of favorable events and renewed market enthusiasm. Key developments, such as the U.S. elections, played a pivotal role in revitalizing interest, particularly within the DeFi sector, where institutional engagement surged alongside memecoin trading activity.

This report delves into the metrics and trends shaping the industry, highlighting record-breaking user activity, growing Total Value Locked (TVL) in DeFi, and the recovery trajectory of the NFT market. With intensified marketplace competition and a notable decrease in security breaches, November proved to be a dynamic month for the dapp ecosystem.

Key Takeaways

Daily unique active wallets (dUAW) hit an all-time high of 24.6 million in November, reflecting a 9% month-over-month increase. DeFi continues to drive activity, accounting for 33.4% of overall dapp engagement—the highest share since early 2019.
The Total Value Locked (TVL) in DeFi rose to $227 billion, marking a 37% increase compared to October and approaching all-time highs.
NFT trading volume experienced a resurgence, reaching $698 million—a 22% month-over-month increase. However, NFT sales volume declined by 11%, with total transactions amounting to 3 million.
OpenSea remains the leading NFT marketplace, commanding a 28% share of trading volume and active traders. OKX follows closely with a 26% share, benefiting from the growing popularity of Bitcoin Ordinals.
Security incidents in the dapp industry dropped by 80%, with losses from exploits and hacks totaling $18 million—one of the lowest monthly figures recorded this year.

1. November dapp industry overview

The dapp industry sustained its upward momentum in November, setting new benchmarks in user engagement. Average daily Unique Active Wallets (dUAW) reached an all-time high of 24.6 million, reflecting a 9% increase compared to November’s figures.

DeFi maintained its leadership within the dapp industry, recording 8 million dUAW. This growth aligns with the onset of a new bull run, where memecoins have regained hype and are heavily traded. While interest in social and AI-focused dapps has waned, NFT and gaming dapps remain vital drivers of industry activity.

Blockchain performance highlights

Solana: Leading the pack, with the Raydium exchange driving activity and solidifying its position as the top-performing blockchain.
NEAR: Secured the second spot, largely due to the ongoing success of the shopping app KAI-CHING.
Base: Ranked third, fueled by substantial activity on Uniswap V3 by the AI agents tokens.
opBNB: Claimed fourth place, with notable traction for the Particle Network dapp.
Aptos: Rounded out the top five, supported by strong engagement with Kana Labs.

For more detailed insights and real-time updates on blockchain and dapp performance, explore our Chain Rankings section.

2. DeFi continues to lead our UAW rankings

The DeFi sector continues to assert its influence within the dapp ecosystem, claiming a significant share of the market and driving notable activity across multiple blockchains. In November, DeFi dapps emerged as the most utilized category, underscoring their pivotal role in the industry.

Solana’s largest decentralized exchange (DEX), Raydium, maintained strong traction this month, bolstered by sustained interest in memecoin trading—a trend mirrored by Jupiter Exchange. These platforms exemplify how DeFi remains a cornerstone of blockchain activity, capturing both user engagement and trading volume.

Our dapp rankings also highlight the prominence of DeFi alongside gaming dapps, two key verticals that continue to shape the broader blockchain landscape.

3. Memecoins and US elections fuels DeFi growth

November saw continued growth in the DeFi sector, driven by the excitement surrounding memecoin trading and bolstered by favorable developments in the broader crypto regulatory landscape. The re-election of President Donald Trump sparked optimism around cryptocurrency regulation, drawing increased institutional interest. Spot Ether ETFs, for instance, recorded net inflows exceeding $215 million in the three days following the election—their highest cumulative inflow since launch.

This renewed interest propelled DeFi’s Total Value Locked (TVL) to $227 billion, marking a 37% increase from the previous month and nearing the all-time high set in 2022 of $261 billion.

Blockchain-specific highlights

Ethereum remains dominant in TVL, registering a 48% month-over-month increase. Solana ranks second, reaching a multi-month high of $20 billion in TVL. The blockchain also led in new token launches, with over 87% of 2024’s tokens originating on Solana. The Pump.fun launchpad, focused on community-driven memecoin launches, was a significant contributor to these numbers. Other chains also saw notable TVL growth, reflecting the overall market rally and rising token prices.

Key DeFi developments

Kraken’s “Ink” Launch: Kraken announced its plans to roll out “Ink,” an Ethereum Layer-2 blockchain built on Optimism’s Superchain, with a testnet expected in early 2025.

Polygon Partnership: Polygon partnered with the Worldwide Stablecoin Payment Network (WSPN) to drive adoption of its stablecoin, WUSD, for DeFi and payment solutions.

Notable DeFi investments

usdx.money: On November 29, stablecoin issuer usdx.money completed a $45 million fundraising round, bringing its valuation to $275 million. Investors included NGC, BAI Capital, and Generative Ventures.
Zero Gravity Labs (0G Labs): On November 13, 0G Labs secured $40 million in seed funding, alongside a $250 million commitment for future token purchases and $10 million raised through a successful node sale.

For real-time data and deeper insights, visit our DeFi Rankings section.

4. NFT Market shows signs of recovery

Nine months ago, NFT trading volumes surpassed $2 billion, capturing widespread attention within the blockchain space. Although the market experienced a subsequent slowdown, November marked a notable resurgence. NFT trading volume reached $698 million, a 22% increase from October, despite an 11% decline in sales volume to 3 million.

This divergence can be attributed to renewed trading activity in high-value collections, such as those from Yuga Labs, coupled with rising token prices. Improved liquidity and increased engagement with blue-chip collections are fostering confidence among collectors and investors, who are now viewing NFTs not only as speculative assets but also as cultural commodities.

The market’s growth is further amplified by mainstream collaborations like McDonald’s partnership with Doodles NFTs. Their “GM Spread Joy” campaign, featuring vibrant Doodles artwork, appeared on 110 million McCafé coffee cups across the U.S., introducing NFTs to a broader audience.

However, the NFT space is not without its challenges. Nike announced plans to wind down its NFT subsidiary, RTFKT, by January 2025, signaling a strategic pivot in its approach to digital assets.

On the blockchain side, Ethereum remains the leader in trading volume, while Polygon holds the top position for the number of NFT sales. Polygon’s recent integration with Instagram, enabling users to mint, showcase, and sell NFTs directly on the platform, underscores the evolving utility of NFTs as tools for creator engagement and monetization.

Solana ranks second in trading volume, followed by Polygon and Immutable. The role of blockchain gaming is becoming increasingly clear, with Polygon and Immutable—both known for their strong presence in game-related dapps—significantly driving NFT market activity.

For a detailed breakdown of chain-specific performance, explore our NFT Rankings section.

5. OKX surpasses Blur to claim second place

The broader enthusiasm in the cryptocurrency sector is significantly impacting the NFT market, driving growth in both active traders and trading volumes across major marketplaces. OpenSea remains the leading platform, commanding a 28% market share and maintaining its competitive edge. Notably, OpenSea announced the upcoming launch of its 2.0 platform, set to debut in December, generating anticipation with teasers and potential airdrop announcements.

Meanwhile, OKX has emerged as a strong contender, surpassing Blur to capture a 26% market share. This growth is fueled by the rising popularity of Bitcoin Ordinals, which have driven substantial increases in Bitcoin NFT trading volumes over the past month.

Among top performers, Rarible stood out with a significant rise in trading volume. The platform’s introduction of “Scope,” the first NFT launchpad built on the Solana Virtual Machine (SVM) ecosystem, has positioned it as an innovator in the space. Additionally, Rarible’s integration of Aleph Zero, a blockchain known for its secure, scalable, and cost-effective environment, further reinforces its appeal.

These developments highlight the intensifying competition in the NFT marketplace, with new users entering the ecosystem and platforms rolling out innovative features. The market is experiencing a refreshing resurgence, signaling a renewed phase of growth and engagement.

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6. Web3 security concerns persist

November witnessed approximately $18 million lost due to exploits and hacks—a significant concern for Web3 security, despite representing an 80% decrease from the previous month. This marks the second-lowest monthly total recorded by the REKT Database in 2024, highlighting progress in mitigating vulnerabilities while underscoring the persistent risks in the ecosystem.

Three major incidents dominated the landscape this month:

Polter Finance Breach (November 16, 2024): This DeFi lending platform on the Fantom network suffered a severe exploit, resulting in a loss of approximately $8.7 million.
DeltaPrime Exploit (November 11, 2024): A sophisticated attack on this DeFi protocol, operating across Arbitrum and Avalanche, led to a $4.75 million loss.
MetaWin Security Breach (November 3, 2024): The online crypto casino fell victim to a breach that caused approximately $4 million in losses.

These incidents underscore the ongoing importance of robust security measures and vigilance in the Web3 space. As always, users are advised to exercise caution and adopt best practices when managing their assets.

7. Closing words

November showcased the dapp industry’s resilience and growth, with notable milestones achieved across multiple sectors. Daily unique active wallets (dUAW) reached an all-time high, underscoring the growing user base and engagement in the ecosystem. DeFi maintained its dominance, with Total Value Locked (TVL) climbing to $227 billion, while the NFT market began its recovery, highlighted by increased trading volumes and renewed interest in high-value collections. Meanwhile, marketplace competition intensified, with OKX challenging established leaders like OpenSea, and memecoins and regulatory developments further fueling DeFi’s momentum.

As the year draws to a close, the industry is positioned for continued growth, driven by innovation, strategic partnerships, and a steadily increasing user base. With market confidence on the rise, the coming months could bring even greater opportunities for the dapp ecosystem.

Blue-Chip NFTs Spark a Resurgence in the NFT Industry

DappRadar’s Dapp Industry Report for November 2024

Key Takeaways

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