New Ethereum Usage Evaluation Report By SFOX Shows Top 10 Highest Transacting Smart Contacts


SFOX recently created a post on their official Medium blog called “What 29,985,328 Transactions Say About the State of Smart Contracts on Ethereum.” They start by pointing out the way that ETH’s price has dropped by 83% below their highest price on the market.

Though some investors might not see the correlation, the blog explains,

“if you want to understand the highs and lows of ETH’s price, you need to understand which smart contracts are driving that ecosystem right now.”

SFOX pointed out that Ethereum’s main promise was “to create a blockchain-based platform for decentralized applications.” They elaborate, commenting that a smart contract,

“is essentially a contract that can be deployed to a blockchain and is enforced by code rather than people. Just as the blockchain allows you to store, send, and receive digital assets, a smart contract allows snippets of code to transfer value to other contracts or people.”

A smart contract should enable the developer to do basically anything, which Ethereum encouraged with their promises to use these agreements “to create a decentralized platform for computing.” After three years of opportunities, SFOX felt that it was time to see if Ethereum was taking the action that they committed to, using “a Jupyter Notebook to query Google’s public Ethereum dataset hosted on BigQuery.”

In the evaluation by SFOX, they classify the top 10 smart contracts into four categories – decentralized exchanges, centralized exchanges, ICOs, and collectible tokens. The top 10 included:

  1. EtherDelta, a decentralized exchange
  2. IDEX, a decentralized exchange
  3. EOS, a crypto and smart contract platform
  4. CryptoKitties, a dApp
  5. Tron, a cryptocurrency that wants to develop a decentralized internet
  6. Poloniex, a centralized exchange
  7. Bittrex 1, a centralized exchange
  8. Bittrex, a centralized exchange
  9. Bitcoinereum, a minable token contract
  10. OmiseGO, a collectible token

Based on that list, it seems that the majority of the top 10 highest-transacting smart contracts are flooded with ICO and exchange activity. The only exception is the CryptoKitties dApp. Even though it looks like Ethereum is a powerful form of support for smart contracts that are usable by developers, it seems that the cost and scalability are still major kinks in the plan.

Despite the picture painted to investors, it seems that dApp developers are not reaping the benefits expected from smart contracts. Much of the activity is still mostly focused on ether and Ethereum-based token trading, but it is not just about the price of Ethereum. Scalability plays a bigger role than it has been credited.

Reports in August from CCN show that there were only eight dApps in the community at the time that could boast a user base over 300 participants. Much of the reason used for this lack of participation had to do with the high gas costs on the network, along with the lack of ability to scale the dApps to a higher number of users. Unfortunately, Ethereum has been guilty many times of charging high fees when the network becomes congested, which ruins the ability for dApps to truly thrive.

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