In 2024, the Web3 ecosystem experienced notable shifts, with Base and Solana emerging as leaders in ecosystem growth, while Layer 2 decentralized applications (dApps) maintained a steady 20% annual expansion.
Ethereum’s Dominance and Emerging Contenders:
Ethereum remained the largest public blockchain, with more than 2,500 applications and $1.78 billion in funding across 282 deals. However, the same year also spotlighted the rapid ascension of other ecosystems. According to Coinbase-developed Base and Solana, project numbers soared at 164.8% and 69.6%, respectively. Low gas fees, fast transaction times, and the integration of artificial intelligence into blockchain technology support this upward trend. Some of the notable projects of this kind are Virtuals Protocol and Pump.Fun.
Base’s Meteoric Rise:
Picture Courtesy: cryptoast.fr
Base’s trajectory was especially remarkable during 2024. Having stood at seventh in early 2024, Base shot up to become the world’s second-largest blockchain ecosystem, thus capturing 16.8% of global crypto investor interest. This ascent enabled Base to overtake Ethereum in popularity. This trend proved that exchange-backed blockchain solutions have gained increasing acceptability.
Solana’s Continued Ascendancy:
Picture Courtesy: forkast.news
Solana retained the top position with 38.8% investor interest in worldwide crypto investment. Its strong developer community and high-performance capabilities have solidified its status as a preferred platform for various applications, including decentralized finance (DeFi) and non-fungible tokens (NFTs).
Layer 2 Ecosystems: Steady Growth Amidst Shifting Dynamics:
Mature Layer 2 ecosystems, including Optimism and Arbitrum, saw a deceleration in venture capital inflows. While this was happening, their dApp ecosystems continued to grow at a rate of 20% per year, indicating that they are turning towards self-sustaining growth models less dependent on external funding.
Investment Trends and Sectoral Highlights:
The Web3 industry witnessed a total financing amount of $10.112 billion in 2024, marking an 8.3% increase compared to 2023. The infrastructure sector led with $3.995 billion in funding. Early-stage investments (under $5 million) dominated, with 627 projects completed, reflecting a 20.6% increase from the previous year. Notably, the social sector emerged strongly, with total financing surging 650% quarter-on-quarter.
Outlook for 2025:
Looking forward, the first half of 2025 is expected to be diversified in terms of development within the crypto market. Key focus areas include Decentralized Physical Infrastructure Networks (DePIN), Real-World Assets (RWA), artificial intelligence integration, and consumer-grade infrastructure. High-performance public chains like Solana and the Move ecosystem are expected to deliver impressive performance. At the same time, the Ethereum ecosystem is expected to develop steadily under regulatory integration, promoting industry standardization and deeper integration with the real economy.
In summary, 2024 was a transformational year for the Web3 ecosystem, one marked by the fast growth of Base and Solana, steady Layer 2 dApp growth, and evolving investment trends. These developments will keep laying the grounds for innovation and growth in 2025.
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