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Web3 is revolutionizing various aspects of technology, and its impact can be seen across several sectors. From the growth of decentralized finance (DeFi) to the increasing popularity of non-fungible tokens (NFTs), Web3 technologies have been gaining traction at an unprecedented pace.
In this article, we will explore some exciting statistics and trends that showcase the rapid expansion of Web3. By examining these trends and statistics, we better understand the current state of Web3 and where it might be headed in the future. So let's dive in!
1. Web3 Changing The Way We Play Games
Web3 is the next generation of the internet that is decentralized and powered by blockchain technology and is revolutionizing the gaming industry in many ways. Web3 is helping the gaming industry by providing increased funding and support, integrating NFTs, introducing new business models, improving security and transparency, and attracting a larger player base. The statistical data and analytics until October 2023 indicate the growing popularity and potential of Web3 gaming.
Blockchain gaming accounted for a substantial 37% of on-chain dApp activity in August 2023. (Source)
According to DappRadar’s “State of Blockchain Gaming in Q1 2023” report, investments in blockchain gaming and metaverse projects increased by 12.95% to reach US$739 million, suggesting a hopeful future for the industry. (Source)
Between the first quarter of 2021 and the first quarter of 2022, the growth of blockchain games skyrocketed by 2,000%. (Source)
The investment landscape has seen a great deal of activity, as shown in the 2022 Blockchain Games Report from DappRadar. Blockchain game investments grew from US$27 million in 2019 to US$7.6 billion in 2022. (Source)
The global Web3 gaming industry is expected to rise at a CAGR of 18.7% from 2023 to 2033, with the market size projected to reach US$ 133,228.2 Million. (Source)
2. Transitioning NFTs to More Use
As of October 2023, Non-Fungible Tokens (NFTs) have become a significant trend in cryptocurrency and digital art. NFTs are unique digital assets representing ownership over digital or physical items. They have gained popularity due to their potential to increase revenue in various sectors, including art, gaming, music, and more.
Experts predict that the NFT market will expand at an impressive rate, estimated at $6 billion by 2028. (Source)
The revenue in the NFT market is expected to reach $3,162 million by 2027, and the growth rate is expected to be 18.55% of CAGR starting from 2023. (Source)
Over 50% of the NFT projects have a market cap between 100 to 1000 ETH ($0.2M to $2.1M as of April 2023). (Source)
The NFT market is worth over $22 billion, and the industry has grown 220x since 2021. (Source)
NFT sales hit $25 billion in 2021, and the NFT market will be worth $80 billion by 2025. (Source)
3. The resurgence of Decentralized Exchanges & DeFi
Decentralized Exchanges (DEXs) serve as decentralized application (dApp) counterparts to conventional trading platforms, enabling users to engage in peer-to-peer cryptocurrency trading without the requirement of intermediaries. DEXs are pivotal in the DeFi ecosystem, offering increased security, privacy, and autonomy over users' assets. The decentralized exchange (DEX) market has been growing significantly, driven by several factors, including the increasing demand for decentralized financial services that are more accessible, transparent, and inclusive than traditional finance.
According to DefiLlama data, the 24-hour volume of DEXs is 1.659 Billion, the Total Volume of 7 Days is 14.058 Billion in October 2023, and Dex vs. CEX dominance is 19.54%. This comes as the crypto industry faces its strongest regulatory pressure yet, with centralized exchanges feeling the brunt of it so far. (Source)
The global decentralized finance market was valued at USD 13.61 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 46.0% from 2023 to 2030. (Source)
According to DefiLlama, As of October 2023, the total value locked (TVL) in DeFi is approximately $36.727 billion. (Source)
4. Tokenization peaking its power
Tokenization is a rapidly growing phenomenon in the tech industry, transforming sensitive data into digital equivalents or tokens. This technology has evolved significantly since its introduction in 2001, driven by advancements in blockchain technology.
According to MarketsAndMarkets, The global Tokenization Market size was valued at $2.3 billion in 2021, and it is projected to reach $5.6 billion by the end of 2026 at a CAGR of 19.0% during the forecast period. (Source)
The global tokenization market is expected to reach $6.89 billion by 2027 at a growth rate of 24.4%. (Source)
North America: The North American tokenization market is projected to rise at a CAGR of 24.6% over the forecast period. Factors driving this growth include regulations like the CCPA, increasing cyberattacks, and a growing inclination toward contactless and digital-first credit cards. (Source)
Asia Pacific: The Asia Pacific Tokenization Market is expected to develop at a CAGR of 22.3% over the forecast period. China, Japan, and India are the key markets in this region. (Source)
Europe: The European Tokenization Market is expected to develop at a CAGR of 19.5% over the forecast period. Germany, the UK, and France are the major markets in this region. (Source)
5. DAO is a new form of Organization
Decentralized Autonomous Organizations (DAOs), a new form of organization structure that has emerged with the advent of blockchain technology. DAOs are community-managed entities with no central authority or concept of leadership. They use blockchain technology to provide a secure digital ledger to track online interactions, eliminating the need to involve a trusted third party in any decentralized digital interaction or cryptocurrency transaction.
The total market capitalization of DAOs as of October 2023 was approximately $16.5 billion. (Source)
The top five DAO tokens (BitDAO, Arbitrum, Optimism Collective, Uniswap, Gnosis) held a combined market cap of approximately $13 billion, representing roughly 60% of the total market cap. (Source)
Blockchain experts predict 2023 will be the “year of DAO.” (Source)
DAO allows people to work with like-minded individuals around the globe without needing to trust anyone else in the group, just the DAO's code, which is 100% transparent and verifiable by anyone. (Source)
6. Web3 is on the RISE
Web3 is on the rise in 2023 due to several factors. One key reason is the growing awareness and adoption of blockchain technology, which is the foundation of Web3. As more people and organizations learn about the benefits of blockchain, such as its ability to provide secure, transparent, and decentralized data management, they are turning to Web3 solutions to meet their needs.
Various demographics have increasingly adopted Web3. According to Microsoft’s Work Trend Index 2022, 51% of Gen Z and 48% of millennials envision doing some of their work in the metaverse in the next two years. (Source)
Web3 development is growing rapidly. As of Q1 2023, Ethereum SDKs like Ethers.js, Web3.js, Hardhat, and Web3.py grew 8% Q/Q with a total of 1.9 million downloads, which is up 46% compared to Q1 2022. (Source)
The development of decentralized applications (dapps) is on the rise. In Q1 2023, DappRadar saw a 9% Q/Q growth rate of decentralized applications (dapps), totalling 17,564 dapps across all chains compared to Q4 2022. (Source)
According to grandviewresearch, the global Web 3.0 blockchain market size was $1.73 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 47.1% from 2023 to 2030. If we apply this CAGR to the 2022 market size, we estimate the 2023 global Web 3.0 blockchain market size to be around $2.54 billion. (Source)
In the second quarter (Q2) of 2023, Web3 startups raised over $1.8 billion, compared to $7.5 billion during the same period last year. The first half of 2023 has seen a 78% drop in Web3 fundraising compared to the first half of 2022. (Source1) (Source 2)
7. Smart Contract showing its feasibility and adoption
Smart contracts are becoming increasingly popular due to their potential to automate various processes across multiple industries. They are self-executing digital agreements that can carry out direct transactions of assets between untrusted agents without the need for a third party. This technology is powered by blockchain, providing a secure and transparent way to create and execute these contracts.
Smart contracts deployed on EVM chains, including Ethereum, Arbitrum, Optimism, and Polygon, were up 302% quarter over quarter. (Source)
Ethereum smart contract deployments grew 64% Q/Q compared to Q1 2023 and 277% Y/Y compared to Q2 2022. (Source)
Smart contracts on layer 2 (L2) blockchains like Optimism, Arbitrum, and sidechains like Polygon grew 1106% Y/Y compared to Q2 2022 and saw a 302% increase Q/Q compared to Q1 2023. (Source)
According to the survey of 600+ developers. Smart contract security, account abstraction, and ZK-rollups were the top three topics they were most interested in, indicating that developers are all in on scaling Ethereum. (Source)
8. Web3 giving lots of money to job seekers
The Web3 job market has numerous job opportunities. According to a report by Analytics Insight, the top high-paying Web3 jobs in 2022 included blockchain engineers, smart contract developers, NFT developers, data scientists, UX designers, growth hackers, business analysts, product managers, community managers, and project managers. The scope of different jobs in Web3 is not limited to these ten. There is a demand for professionals with different skill sets, such as marketers, content creators, lawyers, and accountants.
18,000+ developers are actively working on open-source crypto and Web3 projects. (Source)
The average Web3 developer salary ranges from $70,000 to well over $350,000 per year. (Source)
According to a recent survey by Pantera Capital, the median salary for a typical Web3 developer is $128,000 in 2023, with the highest salaries in North America at $166,610, followed by $102,000 in Europe and $90,000 in Asia. (Source1) (Source 2)
In conclusion, the outlook for Web3 in 2023 appears promising, with various metrics indicating significant growth and adoption. Developers' interest in scaling Ethereum and the increasing number of smart contracts deployed on EVM chains suggest a strong foundation for further expansion. Additionally, the growing investment in Web3 technologies, the surge in Web3 job opportunities, and the rising popularity of decentralized finance (DeFi) platforms contribute to an optimistic forecast.
While challenges may be ahead, such as potential market volatility, the current trends indicate a positive trajectory for Web3's continued evolution and maturation.