Ethereum Rules Dapp Market in Q1 Despite Black Swan; DeFi Is The Main Growth Driver
Ass per the latest report of Dapp Review, the Coronavirus outbreak, the Black Swan of 2020 that triggered the global market sell-off had a direct impact on the decentralized applications (DAPP) market in Q1. In the first quarter of 2020, a total transaction volume of $7.9 billion across 13 blockchains was recorded, this has been an increment of 82.2% from 1Q19.
The major three protocols Ethereum, EOS, and Tron contributed more than 99% of the total volume. Among these three top blockchains, Ethereum was the only one with year-over-year growth, both Tron and EOS suffered a loss in users and transaction volume.
When it comes to dapps, 254 new dapps were launched in Q1, which was 60% lower than 1Q19. Game, exchange, and casino are the top three sectors in terms of active address. The total active addresses that interacted with dapps meanwhile dropped 22.1%. However, Casino dapp was the popular category last year has been down 64.4% in volume this quarter.
DeFi is the “growth gist”
Ethereum remains the king in the Dapp space, with $5.64 billion in total transaction volume reported by Ethereum dapps, an increase of 652% compared to 1Q19’s $743 million.
However, the active dapps on Ethereum at 641 have been fewer than last time’s 173. Out of these 33 are from Finance, 72 Exchange, 180 Game, and 71 are active Casino dapps.
Ethereum-based Decentralized Finance (DeFi) projects are the main volume growth driver. DeFi has been the “growth gist” of Ethereum since 2019 with the largest transaction volume.
However, instead of Ethereum’s native token Ether, most of the volume of DeFi projects are in ERC 20 tokens like DAI, USDC, and WETH. As such, $5.64 billion transaction volume of Ethereum, 84% was generated by ERC-20 tokens.
The sell-off on March 12, actually resulted in the transaction volume of Ethereum dapps reaching a historic peak of 3326 million, mainly contributed by MakerDAO, dYdX and other DeFi projects.
Now, Tron is also slowly making its place in DeFi space with the unveiling of Djed, a MakerDAO-like stablecoin system.