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Dapp Industry Report: October 2020

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DappRadar

Ethereum generated more than $47 billion in transaction volume in October 2020.

Our October 2020 overview of the dapp ecosystem covers a total of seven blockchains. Not only the three main dapp blockchain – Ethereum, TRON, and EOS are included, but also Steem, Hive, Binance Smart Chain (BSC), and WAX. 

Within this review, we are going to analyze daily active wallets, total value locked, transaction volumes, and native protocol token price changes.

N.B: The DeFi ecosystem refers to Decentralized Finance and Decentralized Exchange dapps.

Table of contents

  • Key takeaways
  • Ethereum
  • TRON
  • EOS
  • Binance Smart Chain (BSC), Hive, Steem, and WAX
  • Conclusions

Key takeaways

  • Ethereum daily active wallets increased by 14% in October month-on-month
  • Ethereum transaction volume surpassed $47 billion in October.
  • 99% of the total Ethereum transaction volume belongs to DeFi.
  • TRON and EOS decreased in token value, daily active wallets, and transaction volume.
  • The best of the rest title goes to Binance Smart Chain with 10,000 daily active wallets and $1.2 billion in transaction volume.

Ethereum

DeFi still the major contributor

Ethereum is still the most significant protocol in 2020. Although Ethereum gas prices decreased within October, they are still comparatively high. Nevertheless, it barely affected the performance of the main metrics during October.

Source: DappRadar

Daily active wallets grew by 341% year-on-year and by 14% month-on-month. The biggest contributors were still DeFi ecosystem dapps that accounted for 83% of total daily active wallets. Games and Marketplaces were the second and third biggest categories in October.

On the other hand, transaction volumes haven’t reached September levels due to the fact that yield farming has calmed down. While Ethereum generated more than $47 billion in transaction volumes in October. 99% belongs to the DeFi ecosystem.

The total value locked within the DeFi ecosystem was comparatively stable. No major changes happened during October. TVL and aTVL grew by 5% and 4% respectively.

The Ethereum token price also faced a rollercoaster recently. At the end of October, the price surpassed $400. While this is not the highest value in 2020, it grew by more than 6% compared to September’s month-end. 

Source: DappRadar

Games and Marketplaces improved daily active wallets by 126% and 39% respectively

On average the number of daily active wallets increased by 14% in October month-on-month. While the biggest contributors in total daily active wallets were the DeFi ecosystem dapps. The biggest growth is spotted within the dapp Game and Marketplace categories. Daily active wallets increased by 126% and 39% respectively.

The biggest contributor to the games category was Axie infinity that accounts for 48% of total daily active wallets. Rarible and the Axie Marketplace were two of the biggest contributors in the Marketplace category. On average the dapps generated around 1,100 and 700 daily active wallets in October respectively.

DeFi ecosystem dapps daily active wallets grew by 6%. The biggest drivers were Compound and Uniswap.

Source: DappRadar

Total value locked surpassed $10 Billion 

According to the DappRadar DeFi page, the total value locked was stable during October. The biggest portion of the total value still belongs to Uniswap which holds $2.8 billion of the total value locked at the end of October. 

Source: DappRadar

MakerDao and Compound kept second and third places respectively. MakerDAO held $1.8 billion while Compound more than $1 billion in total value locked.

Transaction volume surpassed $47 Billion

In October, transaction volume was 38% lower than when compared to September. While total transaction volume surpassed $47 billion. The DeFi ecosystem accounts for 99% of total transaction volume.

Source: DappRadar

High-risk dapps spiked in terms of transaction volume by reaching $160 million. HEX and Forsage were behind the growth. Both account for more than 56% of high-risk transaction volume.

Marketplaces generated around $9 million while games generated $3.4 million in terms of transaction volume.

TRON

Shows a downward trend in October

In October, the TRON protocol did not perform well as expected. Although the release of version 4.0 in July and attempts to create a DeFi ecosystem were promising back in Q3 2020, in October almost all metrics decreased.

The value of Tron’s native token experienced its highest value of $0.034 in September. However, in October it decreased to a value of $0.025.

Source: DappRadar

Daily active wallets decreased by 12%

Total daily active wallets in October decreased by 12%. However, from the below chart, it’s evident that maximum daily activity is from the high-risk category. 

The high-risk category has witnessed major activity in October again with more than 140,000 daily active unique wallets increasing by 10% compared to September. 

Source: DappRadar

The dapps behind such tremendous growth were TRONCHAIN and TRON2GET. These two dapps generated a minimum of 15,000 daily active wallets each respectively in October.

In October, the DeFi ecosystem on TRON proved to be very risky with ShartTron and SharkDeFi entering the category back in October. The dapps spiked in numbers and then disappeared within two weeks. The case proves TRON’s DeFi ecosystem to be very experimental and very risky.

On the other hand, JustSwap performed steadily and stands with daily active wallets of 2,500. 

Transaction volume decreased by 40%

TRON’s Transaction volume generated $750 million in October 2020. As depicted below the transaction volume decreased by 40% compared to September. However, year-on-year there is an increase of 293%.

Source: DappRadar

The major contributors in October were the following categories: High-Risk, Gambling, and the DeFi Ecosystem. The top dapps were JustSwap, WINk, and TRONCAMP with a total transaction of $128 million, $66 million, and $65 million respectively.  

EOS

Dips in daily active wallets and transaction volume

Since May EOS activity increased within both transaction volume and daily active wallets. However, by the end of October daily active wallets have decreased by 4%

The value of the EOS native token price also decreased by 4%. At the end of October, it reached $2.51.

Source: DappRadar

Decreasing activity in the DeFi ecosystem

As mentioned above and depicted in the chart below in October the daily active wallets dipped by 4%. 

The DeFi Ecosystem, Collectibles, and Gambling decreased by 15%, 80%, and 19% respectively compared to September. The dapps showing a decrease in active wallets are Newdex in the DeFi Ecosystem and Felix & Dice in the Gambling category. 

On the other hand, Games and Marketplaces slightly decreased by 1% compared to September.

The EOS Social dapp category on the other hand increased by 9% compared to September. The dapp which contributed majorly in October is Yup with more than 7,000 unique wallets. 

Source: DappRadar

Transaction volume decreased by 26% in October

EOS’s transaction volume generated $1.3 billion in October 2020. As depicted in the chart below the transaction volume decreased by 26% compared to September. However, year-on-year there is an increase of 1,242%. 

The major contributors in October were from the Gambling and DeFi Ecosystem categories. The top dapps were Newdex, DeFis Network, Defibox, and EOSPLAY with total transaction volumes of $864 million, $128 million, $87 million, and $85 million respectively.  These dapps hold 83% of the total transaction volume. 

Source: DappRadar

The best of the rest

Binance Smart Chain (BSC), Hive, Steem, and WAX

Binance Smart Chain (BSC) went live in September. Since then the daily active wallets exploded and surpassed 10,000 wallets by the end of October. However, it did decrease by 8% compared to September. The transaction volume has already surpassed more than $1.2 billion.

The dapps responsible for BSCs growth are PancakeSwap and Cross Finance which belong to the DeFi category. BSC DeFi dapps might prove to be a major competitor to Ethereum’s DeFi ecosystem. 

The second spot for the best of the rest goes to the Hive protocol. The daily active wallets of Hive have been steady throughout the month but they did decrease by 3% in October. The dapp that helped to deliver results was Splinterlands.

The third spot for the best of the rest was WAX protocol, it has been performing well since July with a small decrease of 10% in daily active wallets by the end of October. However, the best performing dapps are EarnBet, PROSPECTORS, and GoPepe. 

Last but not least it is Steem protocol. Active wallets have been declining due to certain dapps porting over to Hive with the protocol’s daily active wallets dipping by 10% in October. 

Source: DappRadar

Conclusions

After such an amazing September for all tracked blockchains, October showed a downward trend.

Ethereum’s transaction volume decreased by 38% in October compared to September. Whereas the activity within the daily active wallets increased by 14% in October. The biggest contributors were the DeFi ecosystem dapps.

EOS and TRON’s transaction volume and daily active wallet activity have decreased in October. 

TRON’s DeFi dapps proved to be risky. SharkTron and SharkDeFi launched in September, creating a spike in both transaction volume and daily active wallets only to disappear a couple of weeks later.

The best of the rest title goes to BSC and we predict that the Binance Smart Chain might offer serious competition to Ethereum in the upcoming weeks and months in regard to the developing DeFi Ecosystem. 

BSC protocol has experienced more than 10,000 daily active wallets with dapps like PancakeSwap and Cross Finance responsible for such growth. 

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