A recent report says total Dapps transaction volumes reached $125 Billion in Q3 2020, a figure which is $113 billion higher than in Q2 2020. From these volumes, the Ethereum blockchain accounts for 96% or $119.5 billion of the total created value with the majority of this being attributed to the DeFi ecosystem. Still, the report observes that the EOS and Tron blockchain, where gambling and high-risk category account for 60% of activity, are the only competing chains to offer Ethereum a challenge, albeit a very limited one.
Compiled by Dappradar, the report says the Ethereum blockchain was able to achieve this feat between ongoing concerns about the networks’ high fees. According to the report, “at peak moments transaction costs were more than 400 Gwei.”
In its overview, the report notes that “the Ethereum network has experienced enormous attention recently due to an explosion within the DeFi and DEX dapps categories.” The report adds:
Governance tokens together with yield farming created the hype that drove the network. By no surprise, Ethereum grew in almost all metrics.
In another observation, Dappradar says ETH, which is still the second strongest cryptocurrency, remains highly volatile just like other cryptocurrencies. In the report, Dappradar explains:
“We have already witnessed the price (of ETH) reaching more than $470 at the beginning of September and only to suddenly collapse to $310 and is now around $350.”
Meanwhile, the number of daily active wallets on Ethereum “increased by 154% compared to Q2 2020” and as expected, the DeFi and DEX categories grew “from 12,800 daily active wallets to 50,200 in Q3 2020.”
With the growth of around 1,519% year-on-year and around 300% quarter-on-quarter, “DeFi became the largest ecosystem in Ethereum holding 90% of total daily active wallets.”
Turning to Tron, the same report concludes that 2020 has been a remarkable year for Justin Sun’s blockchain after “both daily active wallets and transaction volumes skyrocketed reaching all times-high values.”
The blockchain’s performance is attributed to the launch of Tron 4.0 as well as the protocol’s entry into the DeFi space which evolved further in Q3 2020, according to Dappradar. Breaking down the Tron network’s performance, the Dappradar report says:
“The number of DeFi ecosystem dapps exploded during Q3 2020. There were three DeFi dapps available on TRON back in Q2 2002. By the end of Q3, the total number of dapps submitted to DappRadar increased to 27.”
However, highlighting the domination of the Tron network by high-risk dapps, the report notes there “were 645 dapps submitted to DappRadar in this category to date and from the total of 695, 225 are gambling dapps while 422 are high-risk dapps.”
Meanwhile, with the Defi craze still ongoing, there are expectations that Q4 will likely see a continuation of this growth. However, the growing number of scams in the space is likely to slow down the growth rate going forward.
Author: Terence Zimwara