In Q2 2024, Web3 experienced a significant uptick with daily unique active wallets (dUAW) reaching 10 million, marking a 40% increase from the previous quarter.

This growth was driven by robust activity in social dApps, NFT marketplaces, and decentralised exchanges (DEXs).

Despite the positive user engagement, concerns over sustainability were raised due to practices like "airdrop farming," contributing to the spike.

Moreover, the period saw $430 million in losses from security breaches, highlighting ongoing vulnerabilities in the Web3 ecosystem.

This has intensified discussions around regulatory frameworks to ensure both innovation and user protection in decentralised applications.

As the industry continues to expand, balancing growth with security measures and regulatory clarity remains crucial for its future development.