Web3 Users Surge to 10 Million in Q2 as MetaMask Enhances Security

ConsenSys integrates Wallet Guard to fortify MetaMask’s security amid rising Web3 threats.

In a significant development for the decentralized finance (DeFi) sector, Web3 users have reached a record-breaking 10 million in the second quarter of the year, and ConsenSys has strengthened MetaMask’s security by integrating Wallet Guard. This edition of Finance Redefined brings you the essential updates from the past week.

A July 4 report from blockchain analytics firm DappRadar revealed that the number of Web3 application users soared to an unprecedented 10 million in Q2. The daily unique active wallets (dUAW) averaged 10 million throughout the quarter, representing a 40% increase from the first quarter and setting a new all-time high. The report highlighted that every sector of the decentralized application (DApp) industry experienced notable growth, contributing to an overall bullish trajectory for the market.

In a bid to enhance user security within the Web3 ecosystem, ConsenSys announced its acquisition of Wallet Guard, a tool designed to protect digital assets and data from theft, scams, and fraud. The integration of Wallet Guard's advanced security features into MetaMask is expected to significantly improve user protection. Wallet Guard’s expertise in transaction validation and client-side heuristics will bring enhanced security capabilities, such as scam and drainer detection, to MetaMask users. The Wallet Guard team will join ConsenSys’ MetaMask Product Safety Team to ensure a smooth and effective integration.

Ethereum’s co-founder Vitalik Buterin continues to push for improvements within the blockchain space. Ethereum developers have introduced a new Ethereum Improvement Proposal, EIP-7732, which aims to overhaul the block validation process to expedite the blockchain. This proposal suggests separating the block validation process into consensus and execution phases, thereby enhancing both security and performance. EIP-7732 responds to the increasing demand for efficiency on the Ethereum blockchain, aligning with Buterin’s vision for faster transaction confirmation times.

June saw a notable decrease in crypto-related hacking incidents. According to crypto analytics firm PeckShield, approximately 20 hacking incidents were reported in June, resulting in nearly $176 million in losses. This figure represents a significant 54.2% decrease from May, when hackers made off with $385 million. The most significant hack in June was the BtcTurk crypto exchange exploit, which saw over $100 million in assets stolen. Early estimates from onchain investigator ZachXBT placed the losses at around $55 million. Other notable incidents included a $22 million loss from the centralized exchange Lykke and a $19.4 million loss from DeFi lending protocol UwU Lend.

Despite the positive news, the DeFi market had a mixed week. Data from Cointelegraph Markets Pro and TradingView indicated that most of the top 100 DeFi tokens by market capitalization traded in the red on weekly charts. Additionally, the total value locked in DeFi protocols fell below $90 billion, reflecting the ongoing challenges and volatility in the sector.

As the DeFi landscape continues to evolve, these developments underscore the sector’s growth and the ongoing efforts to enhance security and efficiency. Stay tuned for more updates and insights in the rapidly changing world of decentralized finance.

(Photo Source / Blockonome)