Author: Sara Gherghelas, Dapp Radar; Compiler: Deng Tong, Golden Finance

The number of daily Dapp users reaches 24.6 million, 32% of which participate in DeFi, which is the most important industry this year

2024 is A transformative year for the dapp industry, finally pushing us to the brink of mainstream adoption. The year marked significant regulatory progress, with MiCA in Europe laying a solid foundation and the election of Trump in the US setting the stage for a new wave of institutional interest. Bitcoin’s all-time high marks the start of a much-anticipated bull run, breathing new life into the crypto space.

From every field, DeFi stole the show and became the most active category. It’s not just DeFi innovation that’s driving this trend — the memecoin narrative has defined much of 2024 and given DeFi an extra boost. Meanwhile, NFT trading volume and sales have had their weakest year since 2020. Maybe 2024 will make us realize that NFTs don’t need to be expensive to prove their importance in the broader Web3 ecosystem.

2024 is the year to lay the foundation for the future. Looking ahead to 2025, we expect the industry to mature further. In the meantime, dive into this report to learn about all the exciting developments, breakthroughs and narratives that shaped the past year.

Summary

The number of unique active wallets (UAWs) in the dapp industry will grow by 485% in 2024, reaching an average of 24.6 million UAWs per day by the end of the year.

The “Other” category, driven by AI dapps, saw a 2,269% increase in activity, highlighting the growing importance of AI in the dapp ecosystem.

DeFi activity grew by 532%, ending the year with 7 million UAWs per day and dominating the market by 32% in Q4 2024.

New chains such as opBNB, Matchain, and Base have made significant progress, with opBNB becoming the most used chain, with 3.88 million dUAWs in 2024.

DappRadar approved 5,138 new dapps in 2024, a 72% increase from 2023, with gaming and DeFi being the main categories.

DeFi’s total value locked (TVL) grew 211% to $214 billion in 2024, just 20% below its December 2021 peak.

New chains such as Sui, Base, and Aptos gained traction, but Solana stood out, growing its TVL by 2,000% to become the second largest chain after EthereumThe second largest TVL chain in the market.

Compared to 2023, NFT trading volume is down 19% and the number of sales is down 18%, making 2024 one of the worst years since 2020.

Blur maintained its dominance in the NFT market, holding the largest market share by trading volume for much of 2024, thanks to airdrop activity and a zero-fee trading model.

In 2024, the dapp industry suffered $1.3 billion in losses due to hacking and exploits, a 31% decrease from the previous year and the lowest amount since 2020.

Table of Contents

Industry-wide expansion: Record year for UAW growth

DeFi near all-time high: TVL hits $214 billion in 2024

Since 2020 NFT market's worst performance

A year of reduced losses but persistent threats

Conclusion

1. Industry-wide expansion: Record year for UAW growth

2024 The dapp industry has experienced staggering growth in 2018, with unique active wallets (UAW) growing by 485%. By the end of the year, the surge meant the average daily UAW population reached 24.6 million.

The most significant growth occurred in the "Other" category, which saw a significant 2,269% increase in activity. This surge can be attributed to the rise of AI dapps, which led to the launch of a dedicated AI dapp ranking on DappRadar. Initially, the “other” category was an umbrella term for emerging or poorly defined dapps, including early-stage AI solutions. Over time, AI dapps have gained significant traction, demonstrating their transformative potential and spurring their emergence as a category in their own right.

DeFi ranked second with 532% activity growth and ended the year as the most dominant category with 7 million UAWs per day and a 32% market share in Q4 2024. This is driven by memecoins and AI agent coins, which have generated a lot of buzz throughout the year.

Meanwhile, blockchain gaming ranked third with 421% growth. Although DeFi’s dominance fluctuated between 26-29% throughout the year, in Q1 and Q4 of 2024, DeFi overshadowed the game.

The NFT industry grew 412%, driven by the airdrop narrative, while the social industry (still emerging) saw a 70% increase in activity. Despite modest growth, social dapps are likely to gain more traction in 2025.

Transaction analysis reveals a different story. societyExchange dapps saw the highest growth in transaction volume, up 455%, mainly due to the task platform, where users must complete on-chain or off-chain tasks to receive rewards. Gaming transaction volume has dropped 16% since the beginning of the month, but still saw more than 5 billion transactions this year. This shift may indicate that gaming is moving more off-chain than on-chain.

DeFi saw more than 8 billion transactions this year, a 66% increase from the previous year, and dominated 54% of total transaction volume. This is consistent with trends we have observed - meme trading, newly launched on-chain tasks promising rewards, and a significant uptick in trading activity last quarter as rumors of a new bull run began to gain traction.

Blockchain Performance: Emerging Stars and Top Blockchains in 2024

Among these chains, opBNB became the most used chain, which leverages Optimistic Rollup technology to enhance scalability and reduce transaction costs. Particle Network is the leading dapp on the chain.

Newcomers Matchain and Base have also found success. Matchain rose in the rankings with LOL dapp becoming its top performer, while Base hit an all-time high with $15.65 billion in Uniswap V3 trading volume in 30 days.

While the largest blockchains always steal the limelight, we’re seeing a lot of growth in smaller ecosystems as well. Above we have listed the six blockchains with the largest increases in average daily number of unique active wallets. This list includes Oasys, Internet Computer, Core, WEMIX 3.0, and SKALE. Dapps such as video game app ChainArena on Oasys, social email platform Dmail Network on ICP, and gaming platform Pixudi on Core have contributed to this growth, reflecting the diverse growth of the ecosystem.

Defining DappRadar Metrics for 2024

However, since DappRadar aims to become the global Dapp store, we decided to look at some metrics to see what the trends are this year and what we will see next year. DappRadar approved 5,138 dapps through its developer dashboard in 2024, a 72% increase from 2023, which is consistent with the fact that we are seeing more and more dapps entering the mainstream this year. Gaming accounts for 31.1% of this, followed by DeFi at 18.7%, underscoring their dominance as this year’s key trend.

According to DappRadar’s page browsingAccording to the views, the top-ranked dapps in 2024 are mainly games. Their continued presence in the rankings highlights the strength and engagement of their communities.

2. DeFi near all-time highs: TVL reaches $214 billion in 2024

This year, the DeFi space has become a cornerstone of the dapp industry, as highlighted in Chapter 1. DeFi fared the best, with total value locked (TVL) growing 211% to close 2024 at $214 billion, just $47 billion shy of its December 2021 peak.

Several key factors have contributed to DeFi’s remarkable success this year. First, the hype around meme coins played a big role. The rise of meme coins such as GOAT and PEPE has brought a surge in trading activity and liquidity to DeFi platforms, attracting the attention of traders and speculators.

In the second half of the year, the launch of artificial intelligence agents brought a layer of change to the ecosystem. These AI-powered agents facilitate tasks such as transactions and governance, streamlining operations and driving user engagement. This innovation is likely to be further explored and expanded in 2025, positioning artificial intelligence as a core component of DeFi development.

Finally, the Federal Reserve’s interest rate cuts have reignited interest in DeFi lending protocols. Amid the low interest rate environment, investors turned to platforms such as Aave and Compound for higher returns, leading to a significant increase in lending activity.

Additionally, Bitcoin hit an all-time high of $108,000 in mid-December 2024, driven by major regulatory milestones. In January, the U.S. Securities and Exchange Commission (SEC) approved several spot Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT). IBIT quickly became the first spot Bitcoin ETF to surpass $1 billion in trading volume as of January 19, 2024. On this basis, the SEC subsequently approved a spot Ethereum ETF, and institutions such as Fidelity also launched their own products.

Newer blockchains such as Sui, Base, and Aptos had a stellar year, launching multiple updates and grabbing the spotlight. However, Solana stole the show, bouncing back from a challenging 2023 to achieve a staggering 2,000% growth in TVL to become the second-ranked blockchain by TVL. This recovery solidifies Solana's redemption arc and highlights its resilience.

A lot is happening in 2024. The DeFi industry has firmly established itself through innovation, institutional adoption, and regulatory advancements.position as a transformative force in finance.

Key Trends Impacting DeFi in 2024

Memecoins: In 2024, memecoins such as GOAT, PEPE, and ShibaDoge reignited retail interest and drove liquidity and activity on DeFi platforms. These highly speculative tokens often serve as a gateway for users exploring DeFi for the first time.

AI Agents: The rise of AI-driven agents has revolutionized DeFi by automating complex operations such as yield farming, arbitrage, and governance voting. These agents increase efficiency, reduce human error, and allow users to optimize returns with minimal effort.

Tokenization of Real World Assets (RWA): DeFi continues to connect traditional finance with decentralized systems, unlocking new liquidity and investment opportunities through tokenized assets such as real estate and commodities.

Layer2 solutions: Optimism, zkSync, Arbitrum, and Base gain greater traction by addressing scalability and reducing transaction costs.

Bitcoin Layer2 Solutions: The growth of the Bitcoin network has facilitated the creation of dapps on Bitcoin, extending its functionality beyond a store of value.

Points and airdrop dollars: The project uses a points system and airdrops to incentivize user participation and promote community participation and loyalty in the DeFi ecosystem.

Sustainability: DeFi platforms employ environmentally friendly protocols that are ESG compliant, attracting environmentally conscious investors.

Cross-chain interoperability: Seamless transfer across networks expands the capabilities of DeFi. The interoperability solution enables users to access a variety of liquidity pools and decentralized services without being restricted by a single chain.

Regulatory Developments and Institutional Engagement

2024 will see significant changes to the regulatory environment, particularly in the United States and Europe, with frameworks such as the EU Markets in Crypto-Assets (MiCA) regulation providing much-needed clarity. While these regulations pose challenges, they mark a critical step toward industry maturity and wider adoption. Institutional interest surged, and DeFi further diversified with innovations in prediction markets, lending, and financial instruments.

MiCA’s main impact on cryptocurrencies:

Establishing clear rules for cryptocurrency businesses to ensure legal certainty.

Enhance consumer protection through stablecoin regulations.

Require encryption service providers to obtain licenses to improve security.

Address market manipulation and insider trading issues and enhance trust.

Promote global regulatory harmonization and pave the way for wider adoption.

As DeFi enters 2025, the industry is expected to stabilize, with clearer regulations, further consolidation of risk-weighted assets, and zeroTechnological advances such as proof of knowledge will improve security and scalability. DeFi remains poised to redefine global finance, providing transparent, inclusive and efficient services while connecting traditional and decentralized economies.

3. The NFT market performance hit a new low since 2020

The NFT market in 2024 has experienced violent fluctuations. At the beginning of the year, transaction volume surged to approximately $5.3 billion in the first quarter, a 4% increase compared to the first quarter of 2023. The momentum was short-lived, however, as transaction volume fell to $1.5 billion in the third quarter before rebounding to $2.6 billion in the fourth quarter. Despite these fluctuations, a closer look at NFT sales tells a different story: sales numbers are lower than in 2023, highlighting that NFTs are generally more expensive in 2024, consistent with rising token prices, especially ETH.

On an annual basis, NFT trading volume is down 19% compared to 2023, and NFT sales are down 18%. This makes 2024 one of the worst years for transaction volumes and sales since 2020.

Top NFT Collectibles: A Shift in Dominance

Pudgy Penguins holds the lead in terms of transaction volume, but sales are down 44%. Interestingly, their base prices are up 114%, reflecting the impact of significant efforts in 2024. They have launched plush toys in major retailers such as Walmart, Walgreens and Target across the US, as well as Selfridges and Argos in the UK. In May 2024, they partnered with Mythical Games to develop a blockchain mobile game designed to blend their popular penguin characters with a high-quality gaming experience. In September 2024, Pudgy Penguins partnered with Spanish football club CD Castellón to become the first PFP NFT to appear on a professional football jersey. This reinforces the notion that NFTs with real-world utility continue to perform well.

Yuga Labs' series, while still one of the most traded, has seen its dominance decline, and FP has been severely affected. Despite the challenges, Yuga Labs has plans for 2025 to focus on Otherside, its immersive metaverse platform, and launch new projects in partnership with PP Man. This commitment to innovation may shape their future trajectory.

The gaming industry dominates NFT sales

Judging from the number of sales, game-related NFTs clearly dominate. This trend reflects the gaming industry’s growing adoption of NFTs, which enable players toHome truly owns in-game assets and contributes to a player-driven economy.

Platform Performance: Blur vs. OpenSea

When it comes to platforms, Blur maintained its market dominance throughout 2024 (except Q3). By the fourth quarter, Blur and OpenSea were neck and neck in market share. Blur’s success is driven by multiple airdrop campaigns and its zero-fee trading model, which attracts cost-conscious traders.

OpenSea has had a challenging year. In August 2024, the U.S. Securities and Exchange Commission (SEC) issued a Wells Notice to OpenSea, citing concerns about unregistered securities. Coupled with a declining market and fierce competition, OpenSea announced massive layoffs in November, reducing its headcount by 56%. The company is currently focusing on “OpenSea 2.0” to regain market share and revitalize its platform, while hinting at a possible token launch.

Meanwhile, Magic Eden outperforms OpenSea. Magic Eden initially focused on Solana and has since expanded to include Ethereum, Polygon, Bitcoin, and emerging networks such as Base and Arbitrum. On December 10, 2024, Magic Eden launched its native ME token with a $700 million airdrop to strengthen its ecosystem.

Broader Ecosystem Trends and Future Outlook

The NFT ecosystem has diverse use cases, gaining traction in areas such as gaming, music, real estate, and real-world applications such as ticketing. Environmental concerns drive platforms to adopt sustainable blockchain solutions, while layer 2 scaling solutions like Polygon and zkSync increase transaction efficiency and reduce costs. Regulatory pressure highlights the need for clearer compliance standards and signals a maturing market.

Looking ahead, 2025 is expected to be a year of consolidation and innovation. Mainstream adoption is likely to grow, driven by improved user experience, wider utility in areas such as supply chain management and digital identity, and stronger secondary markets. With regulatory clarity, technological advancements like AI integration, and enhanced smart contracts, the NFT industry is poised to redefine digital ownership and continue to be a cornerstone of Web3.

4. A year in which losses diminish but threats persist

In 2024, security challenges will remain a major concern for the dapp industry. According to the REKT database, the industry has suffered losses of up to $1.3 billion due to hacks and exploits. While this figure is still considerable, it is down 31% from the previous year and represents the lowest loss amount since 2020.

The fourth quarter of 2024 is the quietest of the yearIn the quarter, hackers and breaches caused the least damage. In contrast, losses in other quarters have hovered around the $400 million threshold, underscoring the continued fragility of the ecosystem.

Among the affected blockchains, Ethereum topped the list, accounting for 49.3% of the total losses, followed by the BNB chain, accounting for 22.5%. Ethereum’s dominance in the DeFi ecosystem makes it a prime target for sophisticated attacks such as flash loan vulnerabilities and reentrancy attacks. Its complex smart contracts, frequent upgrades, and reliance on vulnerable cross-chain bridges further exacerbate risks.

Access Control: The Most Common Attack Vector

Access control vulnerabilities will become the most common attack vector in 2024. This occurs when an attacker exploits weaknesses in a system's access control mechanisms to gain unauthorized access to resources, data, or functionality.

Rugpulls also continue to plague the Web3 space, fueling suspicion and eroding trust in the ecosystem. Despite efforts to mitigate the impact of these deceptive practices, these deceptive practices remain an ongoing problem.

The Most Significant Accomplishments of 2024

Among the most impactful attacks of the year, the following stand out:

DMM Bitcoin CEX vulnerability: The centralized exchange was hacked, resulting in a loss of US$300 million.

WazirX Indian exchange vulnerability: WazirX major vulnerability, loss of $230 million.

Ripple co-founder breach: Hackers stole $112.5 million from Chris Larsen’s cryptocurrency holdings.

Munchables Fund Exhaustion Vulnerability: The Munchables platform lost $62.5 million due to a vulnerability.

Radiant Capital Breach: A breach targeting Radiant Capital resulted in a $58 million loss.

As the Web3 landscape continues to evolve, security challenges will continue to be a major concern. At DappRadar, we always advise users to prioritize the safety of their funds by staying informed about potential scams and vulnerabilities. Use a trustworthy platform, enable multi-factor authentication, and be wary of offers that seem too good to be true. Staying vigilant is critical to safely navigating the ever-evolving dapp ecosystem.

5. Conclusion

The 2024 Dapp Industry Report documents the significant progress, challenges, and innovations in the blockchain ecosystem over the past year. From the explosive growth of DeFi and the rise of AI-driven Dapps, to the volatility of the NFT market and ongoing security wars, the industry has shown resilience and adaptability. These developments highlight how Web3 is reinventing the industryindustry and create new opportunities.

As we move into 2025, the focus will likely shift to refining these innovations, achieving greater regulatory clarity and driving mass adoption. The decentralized space is set for another groundbreaking year with advancements in scalability solutions, enhanced security measures, and a wider range of use cases.