WAX Dapp Ecosystem Q1 2024 Report

WAX becomes the 7th most active blockchain in gaming

Disclaimer: The insights presented in this report are based solely on data from the dapps and NFT collections tracked by DappRadar on WAX, and do not encompass all the transactions conducted on the blockchain as a whole.

WAX has been a prominent name in the dapp landscape for several years, known for its vibrant ecosystem and continuous evolution. As 2024 kicks off, the dapp sector experienced a strong bullish trend in the first quarter. This report delves into WAX’s performance during this period, highlighting key developments and trends that shaped its growth. Let’s take a closer look at the factors driving WAX’s success and how it fared in this dynamic environment.

Key Takeaways

WAX had an average of 197,802 daily unique active wallets interacting with dapps in Q1 2024.
The gaming sector had a dominance of 70% over Wax’s wallet activity, ensuring that Wax became the 7th most active blockchain for gaming.
WAX’s TVL witnessed a 42% increase from the previous quarter, closing Q1 2024 with $1.46 million.
Alien Worlds was the most played games this quarter on WAX, with a quarterly total of 6 and 2 million unique active wallets, respectively.
The NFT trading volume reached $2.4 million, with 687,493 NFT sales. The most traded NFT collections were Alien Worlds, Dungeon Items and FUNKO collectibles.

1. WAX On-Chain Activity Overview

The first quarter of 2024 saw a decline in wallet activity on the WAX blockchain, with daily unique active wallets (UAW) decreasing by 33% to an average of 197,802.

WAX’s reputation as a gaming-oriented blockchain remains strong, with 70% of its activity directed toward gaming dapps. The NFT sector accounts for 16% of activity, while 4% is attributed to DeFi. The remaining 10% comprises other dapps, which fit for example in product categories such as gambling and high-risk.

Furthermore, the drop in active wallets coincided with a 43% reduction in transactions from the previous quarter, totaling 445 million.

The decrease in transactions is partly due to the concentration of activity in gaming, where not all games are fully on-chain. Additionally, several games implemented anti-botting systems to improve the gaming experience, further reducing overall transaction volumes. But, as we will read in the sixth chapter, this quarter the WAX team focused as well in changing the tokenomics to reduce transaction subsidies as WAX seeks to move to a deflationary model.

Despite these changes, WAX’s on-chain ecosystem continues to evolve and adapt to new challenges and opportunities.

2. DeFi Ecosystem

WAX is primarily known for its NFT and gaming ecosystem, but it also has a developing DeFi sector with a Total Value Locked (TVL) of $1.46 million at the end of Q1 2024. In this blossoming DeFi sector we’ve seen a 42% increase in TVL from the previous quarter.

Here’s a look at the top DeFi dapps on the WAX blockchain based on wallet activity:

AtomicHub: Known primarily as an NFT marketplace, AtomicHub also has DeFi capabilities. It had the highest wallet activity in this category, with 191,000 wallets engaged during Q1 2024.
Alcor.Exchange: The leading decentralized exchange (DEX) on the Wax blockchain, facilitating token trading and other DeFi services.
WAXDAO: A decentralized autonomous organization (DAO) providing DeFi services like staking and governance.
DEFI Mining: As the name suggests, this dapp focuses on mining within a DeFi framework, allowing users to earn rewards through mining activities.
WaxOnEdge: This dapp offers various DeFi services, including staking and yield farming.

These dapps demonstrate WAX’s expanding DeFi ecosystem, with users participating in a variety of decentralized finance activities. Although WAX’s primary focus remains on gaming and NFTs, these DeFi dapps are contributing to its overall growth and diversification.

3. Blockchain Gaming Activity Overview

The Wax blockchain has become a vibrant hub for blockchain gaming, attracting a diverse range of players and developers. In Q1 2024, wallet activity on WAX indicated a robust gaming ecosystem, with top games offering unique genres and gameplay experiences. From base-building and simulation to sci-fi adventures and MMORPGs, WAX provides a platform for a wide variety of gaming styles.

Here’s a breakdown of the genres of each game in the top 10 list by wallet activity in Q1 2024:

Alien Worlds – A sci-fi game with elements of decentralized finance (DeFi) and metaverse exploration, where players can mine resources and participate in governance. Available on various platforms, including PC and mobile.
Taco Studios – This game focuses on managing a virtual taco restaurant, with gameplay centered around economic strategy and resource management.
Wombat Dungeon Master – A dungeon-crawling adventure game with elements of exploration and combat.
Prospectors – An MMO game that combines real-time economic strategy with resource gathering and building. It provides an open-world experience.
Thrive on Mars – This game allows players to manage a Mars colony, focusing on resource management and strategy.
NFT Panda: World of Fantasy – A fantasy-themed game where players collect and battle with NFT cards.
Realm NFT – This game offers players the opportunity to build and explore a virtual world, with a focus on resource management and exploration.
Spinnia World – An economic play-to-earn game where players accumulate wealth through various mini-games and mining activities.
The Open Space – A space-themed game that allows players to explore, trade, and manage resources.

These games represent a diverse range of genres, from simulation and strategy to adventure and MMO, illustrating the breadth of the WAX gaming ecosystem. Each game offers unique experiences, contributing to the continued popularity of the WAX blockchain among gamers.

4. NFT Activity Overview

The NFT market on WAX saw a slight slowdown in the first quarter of 2024, with a 15% decrease in trading volume, resulting in a total of $2.4 million for the quarter. Additionally, the sales count dropped by 26%, with 687,493 transactions recorded.

Despite the overall decline, there are intriguing patterns among the top 10 NFT collections by trading volume:

Alien Worlds continues to lead the WAX ecosystem, reflecting its strong presence in blockchain gaming. With three gaming-related collections among the top 10, WAX demonstrates its appeal to gamers and gaming communities.

Collectibles, notably those from famous digital and physical collectible brand Funko, remain significant players in the NFT market. Funko’s entry into Web3 has been met with enthusiasm, illustrating the power of traditional collectible brands in the NFT space. The success of such brands suggests that connections with Web2 continue to drive interest and engagement among collectors.

Regarding the platforms where NFT trading is happening on WAX, DappRadar tracks three major marketplaces:

AtomicHub: Known for its extensive collection of NFTs and user-friendly interface, AtomicHub is a popular destination for buying, selling, and trading digital assets.
Nefty Blocks: This marketplace is distinguished by its community-driven approach, offering users the opportunity to create and trade NFTs while participating in unique events and collaborations.
NFT Hive: Focusing on tracking and analyzing NFT activity, NFT Hive provides detailed metrics and insights, offering a data-centric view of the WAX NFT ecosystem.

For more information on the WAX NFT ecosystem, visit our dedicated NFT Ecosystem page for additional insights and updates.

5. Mememecoin Hype

Memecoins have gained renewed interest from the crypto community, with the industry evolving from its Dogecoin roots into a multibillion-dollar market. Among these memecoins, WUFFI has emerged as a significant player, notably impacting the WAX blockchain ecosystem.

WUFFI serves as an incentive token, encouraging third-party game developers to build a comprehensive framework for gaming and future game development.

Additionally, a noteworthy trend in the past month has been the “play/earn/use-to airdrop” concept. WUFFI embraced this approach by capturing snapshots in Q1 for its first airdrop on April 8th, distributed on both the WAX and Solana blockchains. This airdrop initiative quickly propelled WUFFI to a $60 million market cap.

The project’s success can be attributed to several factors, including strategic collaborations with Solana Mobile and the BONK team, which resulted in token airdrops to their respective communities. WUFFI’s pre-launch promotions also generated a strong following across various social media platforms.

The project has already secured partnerships with over 100 teams committed to integrating WUF into their games, tools, and communities, with more applying daily to join the growing partner program. WUFFI is listed, verified, and audited on major platforms such as DEXTools and DEXScreener. Liquidity pools have been launched on Orca.so and Alcor, and Raydium.

Just recently, WUFFI also announced the expansion of their WUF Pack to Coinbase’s BASE blockchain. An Ethereum Layer 2 that saw a massive surge in liquidity and DAU’s over the last few weeks.

If you’re curious about exploring the variety of tokens on the WAX blockchain, there’s a wealth of opportunities to discover. To navigate this landscape, be sure to check out our WAX token rankings.

6. WAX’s 2024 Roadmap

In this chapter, we’ll explore WAX’s 2024 roadmap, which is packed with significant updates. A key highlight is the focus on EVM integration, offering seamless compatibility with other ecosystems. This, along with other enhancements like Tokenomics Upgrade, Resource Improvements, and new Marketplace features, signals a robust and innovative direction for WAX. Let’s dive into the details.

Q1: Foundational Upgrades

Tokenomics Overhaul: A new tokenomics model with optional pay-per-transaction fees and variable inflation reduces on-chain inflation and funds WAX’s operational costs. This update supports ecosystem sustainability and encourages users to transition to PowerUp, fostering a more efficient financial system.
RAM Improvements: A proof-of-concept project addressing RAM resource constraints aims to support over a billion active accounts. This initiative is key to scalability, enabling developers and users to engage with the WAX Blockchain at a larger scale.
Node Launcher: A standardized launcher streamlines the process of setting up development and production-grade nodes, speeding up the adoption of the WAX ecosystem.
Developer Guides — Tic Tac Token Series: This series offers comprehensive how-to guides, enabling developers to create game smart contracts and integrate on-chain tools, promoting innovation in decentralized applications.

Q2: Continuous Optimization & Expansion

Tokenomics Refinements: Adjusting the tokenomics model to ensure a healthy ecosystem and support self-sustaining operations.
Antelope 5.0 Upgrade: Keeping WAX updated with the latest version for enhanced performance.
Continued RAM Improvements: Further updates to the resource model to support a billion active accounts and remove paywalls, driving wallet growth.
WAX Side Chain Launcher: This new system helps developers launch production-grade side chains quickly, fostering innovation and encouraging a diverse WAX network.
Developer Guides — Slide Puzzle Series: This series explores blockchain state synchronization and integration patterns, providing developers with practical knowledge to create interactive decentralized applications.

Q3: Further Enhancements

Tokenomics Adjustments: Additional refinements to support a healthy ecosystem.
WAX EVM Side Chain Launcher: This addition extends WAX’s multi-chain interconnectivity, allowing seamless launch of Ethereum Virtual Machine (EVM) side chains. This integration promotes native compatibility with Ethereum smart contracts and attracts developers from the Ethereum community.
Developer Guides: Continuation of the series based on community-driven use cases.

Q4: Advancing to New Heights

Tokenomics Final Tweaks: Final adjustments to optimize the tokenomics model for the year.
Antelope Instant Finality Upgrade: This upgrade provides near-instant confirmation of transactions, enhancing user experience and promoting a seamless blockchain environment.
Developer Guides: Further guides focusing on advanced integration patterns, aiding developers in creating innovative and efficient applications.

7. Closing words

As we conclude the first quarter of 2024, the Wax blockchain has shown continued growth and resilience, despite some shifts in activity patterns. Gaming remains at the heart of Wax’s ecosystem, with 70% of activity dedicated to gaming dapps.

The NFT sector also held strong, accounting for 16% of Wax’s on-chain activity. Although there was a decline in wallet activity and transactions compared to the previous quarter, key NFT collections, like Alien Worlds, maintained their dominance, reflecting the ongoing popularity of NFT-based gaming.

Meanwhile, Wax’s DeFi ecosystem gained traction and grew when compared to the last quarter of 2023, with a Total Value Locked (TVL) of $1.46 million at the end of Q1 2024. Major DeFi dapps like AtomicHub and Alcor.Exchange demonstrated consistent wallet activity, suggesting a growing interest in decentralized finance within the Wax ecosystem.

Looking ahead, Wax’s focus on gaming and NFTs, along with its emerging DeFi sector, present a strong foundation for continued growth and innovation throughout 2024. Innovation they will find in the WAX EVM side chain launcher, and tokenomics, which are part of the roadmap for the remainder of the year.