AI Drives dApp Growth to New Heights
Decentralised applications (dApps) are gaining traction, with a 70% surge in daily unique active wallets (UAW) between the second and third quarters of this year, reaching an all-time high of 17.2 million. According to DappRadar’s latest report, the main driver behind this impressive growth is the rise of AI-powered applications, which saw a 71% increase in usage.
Two key platforms, DIN and Alaya AI, played a pivotal role in pushing the AI sector to new heights, drawing an average of 4.3 million daily UAWs. This trend showcases the increasing enthusiasm surrounding AI’s integration into blockchain technology.
Gaming Takes a Backseat
While gaming remains the most dominant sector within the dApp ecosystem, its overall market share dropped slightly from 28% to 26% in the last quarter. This shift could indicate that users are beginning to explore more innovative applications like AI and social platforms.
Among the most active dApps, Toncoin-based gamified wallet HOT Game led with 1.64 million UAW, while Ronin-based Pixels was the only pure gaming title to make it into the top five with 656,000 UAW. Social dApps are also gaining ground, with CARV, a modular data layer, capturing 1.24 million UAW in the third quarter, making it the most active social application.
DEX Growth Despite DeFi Challenges
Interestingly, despite a 12% decline in total value locked (TVL) in the decentralised finance (DeFi) sector—falling from over $150 billion to $133 billion—decentralised exchanges (DEXs) like Raydium and Uniswap experienced significant growth. Memecoin trading contributed to Raydium’s impressive 1.18 million daily UAWs last quarter, while Uniswap saw 459,000 daily UAWs across its V2 and V3 versions.
Additionally, Jupiter Exchange added to the DEX momentum with 216,000 daily UAWs, solidifying its position as the third-largest DeFi application by user engagement. This growth suggests that DEXs may continue to thrive despite broader DeFi market challenges.
Key Highlights
- AI Surge: 71% growth in AI-powered dApps, driven by DIN and Alaya AI.
- Gaming Decline: Gaming’s market share dropped from 28% to 26%.
- DEX Growth: Raydium and Uniswap showed robust user activity despite a drop in DeFi’s TVL.
US Supreme Court Clears Sale of Seized Bitcoin
The U.S. government has received the go ahead from the U.S. Supreme Court for control over 69,370 BTC seized from criminal cases like Silk Road. This large sale worth approximately $4.33 billion (yes billion) is likely to put downward pressure on the crypto market, as such significant liquidations often impact prices.
On October 7, the U.S. Supreme Court chose not to hear the case from Battle Born Investments regarding their claim to ownership of Bitcoin.
The government has been known to auction off these assets in stages, which helps to minimise market disruptions. However, traders are still watching closely for any immediate effects on Bitcoin’s price, as it could add volatility to an already fluctuating market.
Two months ago, the U.S. government made a major Bitcoin transaction, moving approximately 29,800k BTC, including 10,000 BTC valued at $594 million, to Coinbase Prime. Currently, the government holds a significant 203,239 BTC, which is worth around $12.63 billion.
Bitcoin drops 5.3% to $58,900
Bitcoin’s price saw a significant drop of 5.3% between Oct. 9 and 10, reaching a low of $58,900, as economic uncertainty clouded market sentiment. The trigger? Higher-than-expected U.S. inflation data for September, which raised concerns that the Federal Reserve may pause its interest rate cuts. The Consumer Price Index (CPI) rose by 0.2%, hinting at possible stagflation – a mix of rising prices and stagnant economic growth.
Further weighing on Bitcoin is the sharp rise in U.S. jobless claims, hitting a 14-month high, signalling broader economic concerns. These factors have dampened investor confidence, especially given Bitcoin’s 88% price correlation with the S&P 500. With outflows from U.S. Bitcoin ETFs and a lawsuit against market maker Cumberland DRW, Bitcoin traders are approaching the market with caution, fearing that tighter monetary policies could negatively impact both crypto and traditional markets.
As these macroeconomic pressures mount, Bitcoin’s short-term outlook may hinge on global recession risks and the actions of the U.S. Federal Reserve.
On the daily chart, Bitcoin is showing the 200-day moving average (MA200) acting as resistance. Although there was a false breakout above this level in late September, this time the resistance is holding firm. Yesterday, Bitcoin attempted to push higher but failed to break above MA200, closing the day with a bearish candle—a long upper wick and a close at the session’s low—indicating strong selling pressure. This suggests a negative outlook in the near term.
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