Dapps market falls 40% in the third quarter despite record users in Ethereum
In the third quarter of 2019, the decentralized applications market (Dapps) showed unfavorable numbers in most of the metrics, according to the most recent report from the Dapp.com tracking web portal. Despite this, the number of new users of the Ethereum Dapps soared to their record highs, with the momentum of applications associated with decentralized finance (DeFi).
The report , reveals that the volume of Dapps transactions in the third quarter of this year reached USD 2,030 million, an amount 40% lower than that recorded in the previous quarter. It should be noted that in the first quarter of 2019, decentralized applications mobilized around $3.2 billion, according to the same source.
Dapps.com notes that its study was based on the decentralized applications that operate in the six main blockchains of its ranking, among which are: Ethereum, EOS, TRON, Steem, TomoChain and IOST.
Number Of Launched Dapps Suffered Decline In Q3
The launch of new Dapps also declined dramatically in the period evaluated, reaching just 148 between July and September. The figure is lower than the monthly average of new applications released in the first six months of the year, when almost 165 Dapps were launched each month.
Another indicator that collapsed in the third quarter was user activity in all blockchains evaluated. Only 36% of those who used the Dapps between April and June of this year, connected at least once in the third quarter. This would be the lowest point of use of decentralized applications so far in 2019.
Bets remain the preferred category of Dapps users, followed by exchange houses and DeFi applications, which in the last three months gained popularity. Of the total of 944,300 active users, almost 390,000 opted for betting applications.
In the third quarter almost all indicators fell compared to the previous period. Source: Dapps.com
Despite the red figures of the Dapps market, financial applications showed extraordinary growth by trading USD 525 million in the quarter. The report records that 88% of the total volume of financial Dapps comes from projects built in Ethereum, specifically, DeFi applications. This category attracted some 132,000 users to the Ethereum blockchain.
The study highlights that the majority of users active in Ethereum Dapps in the second quarter did not use any data on that network in the third quarter. Only 80,000 ETH holders used decentralized applications in both quarters.
However, between July and September, there is "a wave of DeFi", which prompted the registration of new Dapps users in Ethereum to more than 310,000. This figure represents the historical maximum in this metric so far
Ethereum Dapps recorded their record high in the growth of new users in the third quarter, driven by DeFi. Source: Dapps.com
Likewise, the DeFi contributed 58% of the total volume of the Ethereum Dapps market, with USD 466 million (ETH 2,275,000). The most used DeFi Dapps in Ethereum were MakerDAO and Nest.
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OlowoI am olowoporoku adeniyi, writer, editor and crypto evangelist, with five years experience in the Blockchain industry.
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