Ethereum Attracts New Users While Other Cryptocurrencies Fade

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Ethereum
Ethereum

Short Insights

  • Ethereum Dapp smart contracts interaction accounts for a total value of 81% during the first quarter across all the blockchains.
  • EOS and TRON face a drop-off in the dapp activity.
  • An observation of 16% rise in the daily active wallets that interacted with Ethereum-based applications is made.

Ethereum stands strong despite the  crypto crash in March

The experience of the crypto market crash that took place in March this year doesn’t seem to have any effect on the momentum Ethereum is creating.

A report from DappRadar on April 16, 2020 revealed that although there was a drop in activity on dapps due to the crash on March 12 , Ethereum held its strength throughout the first quarter of 2020.

There is an observation of 16% rise in the daily active wallets that interacted with Ethereum-based decentralised applications in comparison with the previous quarter. In addition, 64% growth in dapp use is reported in comparison to the Q1 2019. This is in accordance with the report from the analytics firm’s 2020 Q1 Dapp Industry Review.

The distinctive active wallets that interacted with the DeFi apps rose to 86% in contrast to the previous quarter. Whereas wallets that interacted with the decentralized exchange apps went upto 99%. During the first quarter, Ethereum Dapp smart contracts are reported to have interacted with a total value of 81% across all the blockchains. And at the end of March, it owned nearly 17,500 unique active wallets.

Competing blockchains-EON and TRON not as fortunate as Ethereum

EOS experienced a drop of 13% in its dapp activity, although in the first quarter, it processed 13% of more than $6.7 billion value. The value was demented by smart contracts across all blockchains. Dapp activity on the EOS network has gone below 70% and more when compared to last year.

Moreover,  the EOS also faced a drop in the unique active wallet activity across all Dapp categories in comparison with the Q4 2019.

TRON experienced a similar drop-off in the dapp activity. Activity on the TRON blockchain has gone down by 15% currently. This is contrasting to the year 2019 when a peak in TRON DeFi was observed. This drop is observed despite the fact that, in Q1 2020 there was an increase of 18% in dapp usage compared to Q4 2019.

It is worth drawing attention to the point that DappRadar has noted the reason for the activity increase for TRON. It is reported that the credit for the majority of the increase for TRON goes to gambling and high-risk applications that accounted to a total 88% activity during the first quarter. In Q1, TRON reckoned 6% to the total smart contract interacted value. Besides that, it experienced an 85% decrease in the total interacted value, in comparison with the last year.

DappRadar noted that the unique wallet activity for Ethereum decentralised applications dropped to 10% due to the March 12 crash. Despite this fact, the value that interacted with the Ethereum Dapp smart contracts rose to 370% and more compared to the last quarter.

Hence, it is obvious that the increased value signifies the continuation in growth of dapps in the year 2020 and more beyond. And the growth will be observed despite the experiences in market uncertainties.

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