DApps drive blockchain growth, NFT market faces setback in Q3 2024

The decentralized applications (DApps) sector experienced a significant surge in activity during the third quarter of 2024, with blockchain usage climbing by 70%.

A major driver of this growth has been the increasing popularity of artificial intelligence (AI) applications, which have reshaped the landscape of blockchain technology.

According to a report from DappRadar, daily active wallets (DAWs) in the DApp industry reached an all-time high of 17.2 million.

 AI-related DApps led the charge, witnessing a 71% rise in user engagement, contributing nearly 4.3 million daily wallets. Key players such as Data Intelligence Network (DIN) and Alaya AI have been pivotal in this growth.

DIN, a data pre-processing platform launched in April 2024, hit 1 million daily active wallets, while Alaya AI, a data collection and labelling tool, maintained a steady base of 100,000 wallets over the past quarter.

While AI DApps soared, the decentralized finance (DeFi) sector saw a slight decline. The total value locked (TVL) in DeFi fell from $168 billion to $160 billion, with Ethereum taking a 20% hit, dropping to $95 billion. 

However, newer layer-1 blockchains like Sui and Aptos emerged as strong performers, each seeing a 78% increase in TVL.

On the flip side, the non-fungible token (NFT) market saw a sharp decline in Q3. NFT trading volume dropped by 60%, reaching $1.6 billion, and total sales fell by 23%. 

Despite this, OpenSea, one of the leading NFT platforms, managed to bounce back and reclaim its dominant position, with $570 million in trading volume. 

Meanwhile, competitors like Blur and Magic Eden struggled, with Blur’s volume plummeting by 78% after its airdrop incentives ended, and Magic Eden facing challenges due to changes in its royalty structure.