DappRadar’s Dapp Industry Report for October 2024
The dapp industry continues to generate excitement as it evolves, and October 2024 was no exception. Although this report focuses on October’s developments, it’s impossible to ignore the enthusiasm sparked by bitcoin reaching a new all-time high in early November. This milestone has energized the entire blockchain ecosystem, adding momentum to ongoing trends.
Using DappRadar, you have access to a powerful suite of tools to stay ahead of the curve, discovering emerging trends and anticipating what’s coming next. This report provides an in-depth look at the data driving the dapp industry, offering insights into growth patterns, top-performing categories, and potential directions for the months to come.
Key Takeaways
- Daily unique active wallets hit an all-time high of 21.6 million in October, reflecting a 7% growth month-over-month. Notably, DeFi now accounts for 34.5% of overall dapp activity—the highest since early 2019.
- The Total Value Locked in DeFi climbed to $165 billion, a 3.5% increase from the previous month. The DeFi sector remains a major focus for investment, with $100 million raised, underscoring strong market confidence.
- NFT trading volume saw a modest uptick, reaching $572 million (a 5% increase), though NFT sales volume declined by 3%, totaling 3.3 million transactions.
- OpenSea retained its leadership in the NFT marketplace with a 37% share in trading volume and active traders. In comparison, Blur holds a 12% share of the market.
- Security incidents in the dapp industry fell by 17%, with losses due to exploits and hacks totaling $94 million.
Table of Contents
- Dapp industry overview
- DeFi leads our UAW rankings
- Memecoin revival fuels DeFi growth
- NFT market faces mixed signals amid slight recovery
- OpenSea maintains market dominance
- Security concerns persist as Web3 faces ongoing exploits
- Closing words
1. Dapp industry overview
The dapp industry maintained a strong upward trend in October, setting new records in user activity. Average daily Unique Active Wallets (dUAW) reached an unprecedented 21.6 million, marking a 7% increase from September’s figures.
In a notable shift, the gaming sector has lost its leading position within the dapp industry, now outpaced by DeFi. This rise in DeFi usage reflects not only October’s market activity but also highlights the impact of the U.S. elections in early November, which contributed to a surge in trading, particularly around meme coins. With 7.4 million dUAW, DeFi has become the most dominant sector in the dapp ecosystem for the first time since early 2019. Additionally, interest in social and AI-focused dapps has lessened, hinting at the start of a new industry cycle.
In terms of blockchain performance:
Solana ranks first, with the Raydium exchange leading dapp activity on the chain. NEAR holds the second position, driven by the continued popularity of shopping app KAI-CHING despite a slight decrease in overall activity. Base ranks third, fueled by substantial activity on Uniswap V3. In addition, opBNB follows, where the Particle Network dapp has gained considerable traction. Matchain, a recent addition to DappRadar, enters the top five with high engagement, led by the LOL dapp.
For real-time updates and more in-depth insights, please visit our Chain Rankings.
2. DeFi leads our UAW rankings
The DeFi sector has claimed a significant share of the dapp market, solidifying its presence and driving substantial activity across multiple blockchains.
Raydium, Solana’s largest decentralized exchange (DEX), has seen remarkable interest this month amid a resurgence in memecoin trading. The platform generated over $3.41 million in fees within a 24-hour period, even outperforming top Layer-1 blockchains like Ethereum. Raydium’s strategy of using a portion of trading fees to buy back its native token, $RAY, has sustained buying pressure, resulting in a 94% price increase year-to-date.
Another standout performer is LOL, a unique dapp that combines social engagement and AI. Users send laughter recordings in a Telegram group, where AI analyzes the sound to determine mood and rewards participants with $LOL tokens.
For the latest rankings and real-time data on leading dapps, please refer to our live rankings.
3. Memecoin revival fuels DeFi growth
October witnessed a renewed surge of interest in DeFi, driven by the excitement around memecoin trading. This resurgence contributed to a rise in DeFi’s Total Value Locked (TVL), which reached $165 billion—marking a 3.5% increase from the previous month. Although modest, this growth reflects mounting enthusiasm that could set the stage for an even stronger November.
Ethereum retains the top position in TVL, though it remains just below the $100 billion mark. Solana ranks second, achieving a multi-month high of $13.6 billion in TVL. Notably, Solana led in new token launches, with over 87% of 2024’s new tokens originating on this blockchain. Pump.fun, a community-powered launchpad for memecoins, has been the biggest contributor to these numbers.
Bitcoin, meanwhile, claimed the spotlight after reaching a new all-time high in early November, shortly after the U.S. elections. This spike boosted interest in Bitcoin’s DeFi ecosystem, with the Babylon protocol emerging as a key player, holding 61% of Bitcoin’s TVL dominance.
DeFi’s appeal for investors remains strong, attracting $100 million in funding across 21 investment rounds in October, according to RootData. Key investments include:
- Glow: A solar-focused blockchain company, Glow raised $30 million in a round led by Framework Ventures and Union Square Ventures, supporting its mission to apply decentralized systems to solar energy distribution.
- Ellipsis Labs: Based in New York, Ellipsis Labs secured $21 million from Haun Ventures to develop innovative products in the DeFi sector and strengthen decentralized finance foundations.
- Citrea: This DeFi startup raised $14 million in a Series A round led by Founders Fund, directed by Peter Thiel. Citrea aims to advance decentralized financial solutions.
These investments underscore DeFi’s continued momentum and attractiveness to investors.
4. NFT market faces mixed signals amid slight recovery
Just 6 months ago, the NFT market was buzzing, with trading volumes surpassing $2 billion. Since then, however, the market has slowed down. October ended with $572 million in NFT trading volume, marking a 5% increase from September. Despite this uptick, NFT sales volume decreased by 3% to 3.3 million, possibly reflecting this month’s slight rise in token prices.
Ethereum remains the leader in NFT trading volume, though Polygon continues to close the gap. Despite the slight recovery in overall trading volume, many chains experienced declines this month, reflecting the broader challenges facing the NFT sector. Solana showed resilience, with popular collections like Frogana and Retardio Cousins leading trading activity.
For further insights into chain-specific performance, check our NFT Rankings.
5. OpenSea maintains market dominance
The broader instability in the cryptocurrency sector continues to impact the NFT market, leading to declines in both active traders and trading volume across major NFT marketplaces.
Despite these challenges, OpenSea remains the leading NFT marketplace by trading volume and active traders, maintaining a strong competitive edge. OpenSea currently holds a 37% share of the NFT market, far outpacing Blur, which has a 12% market share.
Early November OpenSea announced a 2.0 version of their platform, to be revealed in December. We are keeping an eye on the latest rumors, announcements and airdrop teasers in this article.
6. Security concerns persist as Web3 faces ongoing exploits
October saw approximately $94 million lost due to exploits and hacks—a 17% decrease from the previous month, yet still a significant threat to the stability of Web3.
Two major incidents stood out this month:
- Radiant Capital Exploit: On October 16, 2024, the DeFi lending protocol Radiant Capital suffered a cyberattack, resulting in over $50 million in losses.
- Essence Finance’s Stablecoin Collapse: On October 24, 2024, Essence Finance’s stablecoin, CHI, in the Scroll ecosystem plummeted by 98% in value. The sudden drop, combined with multimillion-dollar collateral withdrawals, raised concerns of a potential rug pull.
As always, we advise users to exercise caution and remain vigilant when managing their assets.
7. Closing words
October 2024 has been a dynamic month for the dapp industry, with notable shifts in DeFi’s dominance, modest recoveries in the NFT market, and persistent security challenges. As we move forward, the industry’s resilience will continue to be tested by market fluctuations, regulatory developments, and technological innovation. DappRadar remains committed to providing real-time data and insights to help you stay informed and navigate this evolving landscape.
Stay tuned for next month’s report as we monitor the latest trends and developments in the world of dapps.
