Alchemy, a leading company in the web3 space, consistently provides insightful reports every quarter, offering a valuable understanding of the industry and developer world in web3. These reports hold immense importance for anyone seeking to comprehend the dynamics and trends shaping the web3 ecosystem, and we deeply appreciate Alchemy's dedication to producing them, reinforcing our strong partnership and friendship.
In this article, we present the key findings from Alchemy's Q2 2023 Web3 Development Report. Covering critical aspects such as SDK installs, smart contract deployments, DeFi and NFT trends, and emerging technologies, the report offers a comprehensive overview of web3 development during the second quarter of 2023. Let's delve into it!
Web3 Dev Activity Continues to Climb
The report highlights a robust growth in web3 developer activity during Q2 2023. Ethereum SDK installs increased by 37% year-over-year (Y/Y) and 7% quarter-over-quarter (Q/Q). Wallet SDK installs also saw significant growth, rising by 196% Y/Y and 22% Q/Q. The number of EVM (Ethereum Virtual Machine) smart contracts created across Ethereum Mainnet, Arbitrum, Optimism, and Polygon surged by 1,106% Y/Y and 302% Q/Q, reaching a staggering 75.9 million contracts.
DeFi and NFT Trends
While the report indicated a dip in DeFi and NFT trading volumes by 27% and 41% respectively, it showed a positive development in terms of users. DeFi users increased by 35%, suggesting a growing interest in decentralized finance. On the other hand, NFT users decreased by 33%, signaling some short-term volatility in the NFT market.
Trends in Account Abstraction and L2 Scaling
Security, account abstraction, and Zero-Knowledge Rollups (ZKRollups) gained traction in Q2 2023 following Ethereum's Three Transitions upgrade. Account Abstraction users saw an impressive surge of 27,360%, driven by the growing popularity of ERC-4337. Additionally, L2 scaling solutions like Polygon and Arbitrum saw significant adoption, leading to 85% Q/Q and 383% Y/Y growth in L1 gas usage related to L2s.
Growth in Layer 2 Bridging and Upgrades
Despite lower DEX and NFT trading volumes, bridging from Ethereum Mainnet to Layer 2 solutions remained steady Q/Q. This reflects the resilience and potential of Layer 2 technologies even in challenging market conditions. Layer 2 solutions like Arbitrum and Optimism also experienced substantial growth. The Bedrock upgrade on Optimism enabled lower fees, faster deposit times, and improved node performance, propelling the platform's development.
Other Noteworthy Trends
In addition to the major highlights mentioned above, the report touches on various other trends in the web3 space. Notably, Solana and Astar experienced significant growth in developer activity and user adoption, with Solana achieving a record number of weekly wallet SDK installs.
Conclusion
The Q2 2023 Web3 Development Report paints a promising picture for the web3 ecosystem. Despite short-term fluctuations in certain areas, the overall development activity is on a solid growth trajectory. The rise of DeFi users, continued Layer 2 adoption, and advancements in account abstraction and scaling solutions indicate a maturing web3 landscape. As the space evolves, developers and investors can find ample opportunities to contribute to and benefit from the web3 revolution.
As PERCS, a tokengating company, we highly value the insights from web3 development reports like the Q2 2023 Web3 Development Report. These reports are invaluable for understanding current trends and preparing for future innovation. By staying informed about SDK installs, smart contract deployments, and Layer 2 scaling, we can tailor our services to support developers and anticipate their needs. We are committed to driving web3 growth and providing builders with the tools and support they need to succeed in this dynamic ecosystem. Together, we are shaping the future of decentralized technologies.
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