After Last Week’s Falling Use of Ethereum DApps, Investors Believe Blockchain Apps Need More Time
According to a report last week from Ethereum World News, decentralized applications are not doing too well. In fact, research by LongHash shows that only 180 of the 1,812 blockchain applications that are based on Ethereum have even seen any activity, as of February 1st. In the same research, it was revealed that, of the transactions being used, only 13% of transactions saw more than 100,000 transactions in the last 24 hours. However, only 6% more had seen between 10,000 and 100,000 transactions in the same amount of time.
Even though these numbers show that, at the very least, some of these applications have loyal users, but there is still a lot of progress that needs to be made at this point. Multiple other researchers have discovered the same information, and Saifeean Ammous (author of “The Bitcoin Standard”) has even questioned how valuable these decentralized applications even are. From a brief look at the market, he believes that centralizing the apps instead would be a better option. He even says that gambling applications like TronBET and Ethereum Dice would be better off with centralization.
Travis Kling, a proponent in charge of the Ikigai crypto hedge fund, commented on Twitter that this type of critique against decentralized applications has no base. He said,
No Coiners: DApps have no good use cases and developers are making things that don’t matter.
2008: The most downloaded paid iPhone app of the year is a screensaver of koi fish swimming in a pond.
Give it time.
— Travis Kling (@Travis_Kling) February 17, 2019
He tried to explain that the blockchain system, as a whole, is still young and there’s a lot of progress that other types of applications have made when they got older. He reminded users of the iPhone app with a koi fish swimming in a pod, which was the most downloaded paid app in 2008. Clearly, the point that Kling is trying to make is that the dApp platform may not look like much for now, but there’s big potential still available.
The comments of Kling come just a few days after he was speaking warnings about the legacy market, also said the Bitcoin offers the perfect front from “fiscal and monetary policy irresponsibility.” Headed that the right in the use of employed quantitative easing (QE) strategies is “how you would write the script,” when it comes to widespread crypto adoption with decentralized applications at the forefront.
Even with all of these issues ahead of the “DApp Revolution,” MakerDAO is one of the few projects that seem to be gaining a lot of growth. It focuses on blockchain-based loans, employing the use of the Dai stablecoin. Right now, there is over 2 million ETH held in smart contracts on MakerDAO’s platform, and there is 104 million Dai in circulation at the moment. Right now, the operations held by Maker presently make up for 2% of the cryptocurrency. Though the numbers are still growing by 20% each month, there are 7,300 active addresses presently in use.
Since the beginning of February, the ERC-20 token that is better known as MKR has seen 37% growth since February began. This is great news for the token, especially considering the stumbling of Bitcoin and other top altcoins. Right now, MKR is valued at $558.21, seeing a growth of 9.49% in the last 24 hours.