DeFi App Growth Boosts Total Transactions On DApp Blockchains By $4.5B In Q2 2020: DAppRadar

By July 4, 2020DApps
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In a report by DApp Radar, the total transactional volume on DApps touched the $12 billion mark in Q2 2020, representing a $4.5 billion increase from Q1 2020. Ethereum (ETH) continues to dominate the decentralized application (DApp) industry attracting a value of $11 billion across Q2 2020.

The growth is majorly impacted by the growth of decentralized finance platforms such as Balancer (BAL) and Compound (COMP) over the past month. EOS and TRON still lag in the DApp ecosystem despite interest in gaming and betting applications on the blockchains increasing substantially in the previous quarter.

Ethereum’s strengthening claim to the first spot

DApp Radar, a DApp aggregating platform, released its Q2 2020 DApp Report on July 2nd, showing the immense growth of Ethereum’s value in the DApp ecosystem. 2020 began as an exciting time for both the DeFi and decentralized exchange (DEX) markets.

DeFi on Ethereums substantial growth with the number of active wallets in the space experiencing a 500% year on year growth, at about 200 at the start of 2019 to over 4000 active wallets at the end of Q2 2020.

The massive growth contributed mainly to Compound’s growth into a crypto unicorn, set DeFi applications as the third largest category on Ethereum, contributing 24% of the total activity. However, DeFi remains the most crucial contributor to ETH growth and value the report states:

“DeFi already holds $11 billion in 2020. This is 2.5 times higher than it was within all of 2019. This metric shows the growth of the DeFi category by 1,410% year-on-year and 150% quarter-on-quarter.”

DEXes growth prospects

The growth of DeFi products, in turn, caused an increase in volumes on DEXes, a report from Our Network states. Curve, a market marker for stablecoins, was one of the biggest beneficiaries of the “yield farming” process on Compound and Balancer, offering competitive slippage to Uniswap and Kyber Network as well as low fees.

The DEX witnessed a 30x growth on its average trading volumes in June following the launch of Compound token, registering a daily volume peak of $60 million in mid-June.

EOS and TRON rise to challenge ETH dominance

The DApp industry is heavily dominated by Ethereum, Eos, and Tron, the latter two aiming at dethroning the king platform shortly. With DeFi cracking up an imbalance in the value stored on each blockchain, TRON sought to add its DeFi assets mirroring COMP and BAL.

While the DAppRadar report states, TRON is still early in the DeFi space, the transaction volume on the blockchain increased by 17,210% in Q2 2020 when compared to Q1 2020 when only $78,000 in size was registered.

TRON’s diversification to DeFi still has some way to go as the gambling and high-risk DApp transaction volumes dominate the blockchain activity. This section and games on the blockchain contribute to 80% of daily activity on the chain.

In a similar breath, the EOS gaming market is the only sector that has grown since the highs in daily activity on EOS back in Q2 2019. The games and marketplace category accounts for half of the total activity on EOS with two apps – the Crypto Dynasty and Upland – leading the charge.

The report also mentioned the growth of the Hive platform over STEEM since the Justin Sun takeover, as well as other DApp projects such as IOST, Thundercore, WAX, Ontology, and Waves.

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