Consumer crypto adoption has continued across various categories. Here's a data-driven summary of recent onchain activity.

Web3 Social had its breakout in Q1 and has continued to gain adoption while some of the more speculative focused engagement has fallen off.

The initial growth in Q1 was largely driven by the introduction of frames, which attracted Farcaster's crypto-native builder community. This growth was further boosted by community formation around memecoins and social utility tokens used for tipping, as well as the creation of channels that rewarded early members with airdrops.

Engagement activity peaked in late March with total daily casts reaching 1.5 million. This peak coincided with a market pullback, the first significant one since January, which affected the prices of early community memecoins and correlated with platform engagement.

This slowdown in activity also aligns with the total number of frame transactions and new addresses interacting with frames. Total frame transactions decreased from 50k in April to 17k in June. However, active addresses interacting with frames peaked at 13k in May before settling at 6k in June.

Lens has seen a steady increase in interacting users, with a 7-day average of 32k daily interacting users and 72k weekly interacting users. The total number of profiles created on the platform nearly doubled, rising from 274k in Q1 to 459k by the end of Q2. This growth is attributed to the diverse range of clients building on the protocol, with Phaver, Hey, and Orb leading in client market share.

User engagement has followed suit, with daily reactions on the protocol surpassing 200k in late May and reaching an all-time high of 238k daily reactions in June, compared to 70k at the end of March.

While daily active users and reactions have reached new highs, collecting/mints on the platform experienced significant growth in mid-May, peaking at 7k collectors and 18k collect transactions. Although there was a cooling off period, the levels remained higher than at the end of Q1.

Open actions, similar to Farcaster frames, allow developers to build new social interactions directly into the social feed. This feature has been predominantly used for native collecting, holding 99% market share of open action usage. Open action transactions spiked in mid-May to 18k, aligning with the surge in collecting activity, and while they have since subsided, they remain above Q1 levels.

Web3 Social began to gain traction in Q1, and since then, several socialfi applications have capitalized on this momentum, catering to more speculative user behavior.

Pump.fun on Solana has continued to be the leader of memecoin launchpads and the most utilized of SocialFi applications.

Memecoins have fueled consumer crypto since Q1, showing no signs of slowing down. Pump.fun simplifies memecoin creation, addressing liquidity and security through a bonding curve activated at a certain market cap.

Since inception, Pump.fun has executed 1,250,000 contract deployments and generated 368,000 SOL ($51,520,000) in revenue. In Q2, it was a top protocol in fee generation, consistently earning 50-100k daily and peaking at 200k. This success has inspired competitor launchpads like rug.fun and momentum, showcasing the viability of bonding curve infrastructure for fair launch tradable ERC-20 liquidity pools, a model now adopted widely.

Fantasy.top, a fantasy trading card game based on crypto influencer Twitter account engagement, launched on the mainnet. It quickly became one of the leading consumer apps in the Blast ecosystem.

Fantasy Top, like many apps in the Blast ecosystem, leveraged strong social and financial incentives pre-launch. Early users benefited from airdropped points and early pack deposits, driving initial adoption to 15k active users on day one. However, this number has declined throughout the quarter.

Since its inception, Fantasy Top has minted 98.2k packs and seen 255.4k cards traded, generating 285.8 ETH in trade fees. The platform now boasts 34.8k total users.

FriendTech, an early leader in socialfi apps on Base, launched their V2 with new features and introduced their native token.

Since its inception, FriendTech has been a significant revenue generator, amassing $22M in protocol fees. As one of the first socialfi products, it introduced speculation to its primary user base, crypto Twitter. Users could buy keys on a bonding curve for access to key-gated chatrooms. With the launch of V2, they introduced 'clubs'. These are group chat-based communities that require their native token, FRIEND, for membership. They also introduced liquidity pools as a part of farming incentives for the FRIEND token.

Since introducing clubs, early crypto communities and influencer/creators have begun to spin up their own. These clubs have generated $83M in total volume and have contributed over $960k in protocol fees, with over 236k clubs being formed.

The V2 rollout, while still early, led to increased activity on the protocol, but this boost was short-lived as indicated by total revenue and daily active users. The key question is whether any communities can gain significant traction to reignite growth in both daily volume and active users. With a 914k key users base, growth potential could be realized if more valuable clubs emerge.

Their token serves as an effective proxy for measuring activity since it plays a crucial role in app transactions which currently sits at a $23M FDV after launching at over $100M FDV. Friendtech has taken an interesting approach by creating a closed app ecosystem. In this system, you can only purchase Friend on their native DEX, Bunnyswap, within their app.

Farcaster has been a standout in web3 social since Q1. In Q2, teams are now building SocialFi apps like Wildcard on Farcaster's social graph, driving more speculative activity beyond the memecoin/utility tokens channel launches that spurred growth in Q1.

Users can purchase whats called tickets for individual farcaster profiles, with prices set on a bonding curve. The app’s native currency, $WILD, is a tipping token, with users receiving daily allowances to tip throughout the Farcaster feed. Tips received by individuals are divided, with 75% going to the creator and 25% to ticket holders. Ticket holders therefore can earn yield in the form of $WILD for holding user’s tickets who accumulate the most tips.

On the first day of going live, the app achieved $100k in TVL and 10k total transactions, thanks to Farcaster's onboarding. Since then, the app has generated about 60ETH in transaction volume from ticket sales, with over 1.9k ticket buyers and 4,835 cards purchased.

Q2 saw major upgrades to onchain gaming infrastructure and game launches, driving growth across ecosystems.

Redstone, a new Layer 2 built by the Lattice team exclusively for onchain gaming, launched this quarter.

The onchain gaming layer 2, launched this quarter, offers Ethereum-level security with lower costs, featuring automatic MUD indexing, quick RPCs, and minimal fees, which is key for onchain gaming.

Since its launch, it has processed 27k transactions, registered 24k users, and recorded 670 ETH in bridged value, reaching a total value locked (TVL) of over $2 million.

Games launched on Redstone include Biomes, DF ARES, DEAR, Downstream, GG Quest, Sky Strife, This Cursed Machine, and Words3. Many of these games also include in-game assets, such as Orbs for Sky Strife and BUGS for Cursed Machine.

Redstone recently held their world expo event and reported impressive early activity across their new L2 games some highlights include

• Sky Strife: Sold 650 Season Passes, hosted 6,000 matches, and processed 600k transactions.

• Biomes: Processed 137k transactions.

• Downstream: Created 108 unique items and terraformed 6.3k tiles.

Lattice seems poised to dominate layer 2 transactions in onchain gaming, leveraging its reputation and enticing builders with permissionless development. Follow their progress using Redstone's YEOMEN.AI dashboards for onchain games and monitor in-game asset prices on redswap.io.

Pirate Nation, one of the most anticipated onchain games, concluded its Season 1 points program and launched its token.

Pirate Nation is the first onchain game out of the Proof of Play gaming studio that also utilizes their own chain. It’s an action-adventure game featuring quests, battles, and resource management that utilizes pirate character NFTs. By competing in the game you can earn in-game currency as well as level up your NFT characters.

To incentivize gameplay they launched their points program via Booty points during season as they prepared for their $PIRATE token launch. As seen above, season one of their points program boasted some impressive stats pre token launch with of 40M transactions. After their points program they launched their token $PIRATE on June 16th with points redeemable for token allocations. The $PIRATE launched at an FDV of over $200M and has recently risen above 350M FDV.

$PIRATE token is used to purchase in-game items such as Gems. Gems are non-transferable, can only be purchased using $PIRATE, and can be used to enhance gameplay. Over 60M Gems have been minted in Q2. With each $PIRATE token being worth about 10 GEMS and $PIRATE at .24 cents Pirate Nation has earned roughly $1.4M from in-game mints. This is only one of the many in-game assets available for minting but roughly all have followed a similar trajectory highlighting the active user base.

Marks (MARK) is one of the two currencies used in Pirate Nation that allow players to level up their Pirates and craft items. Since the $PIRATE TGE on June 16th, daily active players have doubled from around 40k to 80k.

Onchain content has been expanding through various distribution methods, and some specific content areas are starting to break out.

Fabric is an onchain crowdfunding and subscription NFT protocol that saw significant growth in Q2, particularly in subscriptions. Its Hypersub product on Base enables passive collecting and engagement by auto-sending content to wallets. With baked-in incentives like rewards and referral bonuses, users can earn and be rewarded for early support. This innovative model adapts web2’s online distribution for NFT crypto natives.

Key statistics include 207 ETH in volume, 236 crowdfunding contracts, 607 subscription token contracts, and 4,200 active subscriptions. These have resulted in 5.23 ETH in fee generation for Fabric. There are a total of 159k weeks subscribed across all contracts.

Subscriber rewards have grown alongside subscription contracts, totaling 15 ETH, and referral reward stands at 1.8 ETH. Hypersub also recently released their V2 of the protocol that includes more features for creators such as tiers, access control, and more subscriber reward features.

Podcasts NFTs are gaining significant traction among content NFTs. They were an early category that saw continued adoption even after our Q1 coverage. Recent figures, however, dwarf those earlier ones, demonstrating their increasing popularity in terms of mints and podcast distribution.

Currently, Pods has done over 259k mints, generating revenue of $621k from 83k collectors.

To illustrate how much an individual podcast can earn, let's consider 'The Mint Podcast' by Adam Levy, a leader in podcast NFT volume. In Q2, 'The Mint Podcast' has generated over $370k in revenue.

This emphasizes the effect of NFTs on podcast monetization. It provides direct revenue streams for creators and alters the traditional landscape reliant on ads and sponsors. Listeners are choosing to directly support their favorite podcasts while simultaneously building their onchain identity by collecting their favorite episodes.

Coop Records, an onchain music collective accelerated Music NFT mints in Q2 through promoting artists as well as incentives through onchain boosts.

Cumulative mints through Coop Records at the end of Q1 was around 50k and with the use of onchain boosts throughout Q2 their cumulative mints have grown tremendously to over 220k total mints.

Coop Records has generated over 240k in total mints through 277 tracks earning artists over 127ETH ($444,500) and 32ETH ($122,000) in fees for the label.

Writing NFTs have continued to gain traction amongst writers as a new distribution method and alternative way to monetize blogs and content on crypto rails. Mirror and Paragraph were the two leading platforms enabling publishing blogs as NFTs. This quarter Paragraph acquired Mirror and announced their $5M fundraise from prominent investors such as Union Square Ventures and Coinbase.

Paragraph generated over 43k mints in Q2, with the majority coming from Base. Writing NFTs is another type of content NFTs being distributed via Farcaster frames, which explains a lot of the Base market share of total mints on the platform.

Prediction markets continue to be the leading consumer application in terms of adoption and capital inflows.

In our Q1 report, we spotlighted Polymarket due to its record-breaking volume and usage. This trend continued in Q2, as they consistently set new records in monthly volume, active traders, and open interest on their platform.

Throughout Q2, they managed over $175M in total volume. Their highest volume month was June, with over $73M wagered on the platform.

Volume has remained high, and new all-time highs continue to be reached. However, the notable change was the exponential growth in monthly active traders during Q2. At the end of March, there were around 3k active traders. This figure dipped in April but rebounded rapidly to 13.5k in May and then exceeded 24k in June.

Considering the significant growth in the user base, the platform appears to be gaining popularity not just among large-scale traders but also among a broader audience. There has been a substantial increase in new monthly accounts, with 19k added in May and 22k in June. This suggests a healthier distribution of volume per user.

Despite the market pullback in Q2, consumer crypto app adoption has remained strong. While some apps experienced exponential growth that later sputtered, multiple pockets of the consumer app market continue to thrive despite price declines. This underscores broader product adoption and highlights the ongoing strength within the consumer crypto category.

Thanks for reading!

PTC Crypto Team.

Disclosure: PTC Crypto is an investor in some of the projects mentioned above, including Lens, Pods, Coop Records, and Polymarket. At the time of this publication, PTC Crypto or its members may have exposure to the assets described in this article. The above material and content is educational in nature and should not be considered to be a recommendation to invest in a digital asset. This article uses publicly available data, which we rely on to be accurate. While we strive for precision, we cannot guarantee the completeness or exactness of the information.