In the first quarter of 2020, out of tree major protocols, only Ethereum dapps (decentralized apps) saw an increase in users and transaction volume since last year, according to a new report by analytics service DappReview.
The 2020 Q1 Dapp Market Report states that, compared to the first quarter of 2019, “a total transaction volume of USD 7.9 billion across 13 blockchains, increased by 82.2%” in the first quarter of 2020. Not surprisingly, over 99.1% of the total volume was the work of the three major protocols, these being Ethereum, Tron, and EOS. However, out of the three, only Ethereum has seen a year-over-year (YoY) growth. On the other hand, Tron and EOS saw decreases in users and transaction volume:
- The total transaction volume of Tron dapps during 2020 Q1 was USD 415 million, down 74%.
- The Q1 total transaction volume of EOS dapps was USD 1.75 billion, down 12%.
Decentralized finance (DeFi) projects lead Ethereum’s growth with the largest transaction volume. That said, the total transaction volume of Ethereum dapps in the first quarter of 2019 was USD 743 million, while in the first quarter of 2020 it was USD 5.64 billion – an increase of 659%.
The report further notes that most of the volume of DeFi projects are in ERC-20 tokens (e.g. WETH, DAI, USDC), not in Ethereum’s native token ether. More precisely, ERC-20 tokens generated 84% of the USD 5.64 billion transaction volume, according to the report.
They added that a market sell-off in March “was a busy day not only for centralized exchanges but also for DEX [decentralized exchanges] and lending dapps,” as the transaction volume of the Ethereum dapps “reached a historical peak of USD 326 million,” with MakerDAO, dYdX, and other DeFi projects as the main contributors. (Learn more: Market Turbulence Might Push Crypto Users Towards More Centralized Projects)
Furthermore, Ethereum enjoyed a diverse dapp ecosystem and steady performance…