DApps Fail To Meet Expectations With Only About 1.5 Million Users Last Year.
The promise of blockchain is a future with transparency and decentralization. Realizing the latter part of the dream, last year, many companies began working on DApps. However, these had a less than stellar performance last year.
For the uninitiated, a DApp is a decentralized application; as the name implies it is run by multiple users, utilizing trustless protocols, on different networks. This typically avoids having a single point of failure. Users are rewarded for their participation usually by way of a native token.
Various reports suggest that over the course of last year, there were approximately 1.5 million reported users. Of those total users, more than half were on Ethereum alone.
In terms of sheer numbers, Decentralized exchanges won that headcount. While Crypto trading has been lauded as a great use case, in terms of statistics it seems insignificant when compared to centralized exchanges.
Even though the market segment did not hit its stride in this first attempt, the market is buoyed in the knowledge that it is but a matter of time. Soon an option will undoubtedly be offered that can be used by traders and is trusted by institutions
New Coin On The Block Outshines Etherium
While Ethereum reported the highest number of users and different types of DApps, in terms of usage it was outperformed by Tron. A report found that Tron was by far the most ambitious coin. It launched its Project Genesis with a $2 billion kitty and also spent around $100 million on TronArcade to promote its ecosystem.
Apart from that, the coin also initiated nearly a hundred applications. Its ecosystem has a growing and vibrant community that has ensured that, in less than a year, the coin has broken into the top 10 cryptocurrencies.
The coin and its promoters have certainly been making the right noises and business moves.
The Importance Of Growth
Another interesting fact was that the EOS ecosystem continues to grow and was reported to have processed the most transactions. Of those, a whopping 95 percent of the transactions and 75 percent of trading volumes were from Gambling. Thus while the growth was impressive, a sustainable future will need to rectify this dependence on only one segment of the industry.
Data analysis showed some intriguing results: While Ethereum offers more choices, it falls behind in terms of a number of transactions. While Tron has the highest growth rate but lower usage. Finally, EOS has been a little stagnant in terms of development, yet has a very active user base, propelling it to the first place in terms of usage.
Dapps Focussed On Vice
Last year one of the CEOs of the top cryptos was questioned about the development of DApps and their predisposition towards gambling. At that time it was said that other avenues were being explored.
However, the latest report says that the biggest use of cryptos remains to gamble. It accounted for over $3 billion dollars worth of transactions last year. And this is only expected to grow. Crypto powered gambling enables unique features like instant deposits and withdrawals and also a universal currency settlement system. Furthermore, as more and more people get into it, more products will be made available on the platform.
While some have classified the first year performance as underwhelming, it should be remembered that the crypto market lost steam in the latter half of the year and it is a steep learning curve, this niche industry. While gambling is the mainstay of the platforms, for now, other categories like gaming and social media are also expected to blossom.