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Dapp Industry Report: November 2020

Posted by
DappRadar

Ethereum transaction volume surpassed $41 billion in November

Our November 2020 Dapp Industry Report covers a total of seven blockchains. Ethereum, TRON, and EOS are included, but also Binance Smart Chain (BSC), Waves, NEO, WAX, and Hive. 

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)
  • Waves
  • NEO
  • WAX
  • Hive
  • In-Summary

Key takeaways

  • The events around the Ethereum 2.0 launch were one of the key value drivers in terms of TVL.
  • A surge in ETH and other altcoins proved aTVL to be a better indicator of real growth.
  • TVL surpassed $13 billion while aTVL was around $11 billion.
  • Ethereum dapp transaction volume surpassed $41 billion in November. 99% of the total Ethereum transaction volume belongs to DeFi.
  • NFT Marketplace dapp transaction volumes fueled Ethereum volume by $11 million in November. Although it decreased by 24% compared to October
  • TRON reached an all-time high of 150,000 daily active wallets in November.
  • Despite some individual dapps seeing improved activity EOS has continued to see decreased activity.
  • The best of the rest title in November goes to the Hive blockchain showing a stable number of 10,000 daily active wallets.

Ethereum

High-Level Overview

Another exciting month has passed by. One of the most anticipated projects in the blockchain industry, Ethereum 2.0 phase 0 was launched on the 1st of December.

Despite the exciting news of Ethereum 2.0, Ethereum gas prices were still a major network issue in November. Average gas prices were around 55 Gwei during November. 

Source: DappRadar

In terms of daily active wallets, the trend was similar to October. Daily active wallets grew by 239% year-on-year and decreased by 19% month-on-month. 

The biggest contributors were DeFi ecosystem dapps accounting for 85% of the total daily active wallets. Games and NFT Marketplaces were the second and third biggest categories in November.

Transaction volume increased by 1784% year-on-year and decreased by 12% in November compared to October. In general, Ethereum transaction volume was still comparatively high at about $41 billion in November with 99% belonging to the DeFi ecosystem.

The total value locked within the DeFi ecosystem was volatile during November. Volatility triggered by a couple of events. Uniswap’s token liquidity program ended on November 17th. Secondly, the increase of ETH and DeFi altcoin prices positively impacted TVL, reaching $13 billion at the end of November. While adjusted TVL was around $11 billion. 

The Ethereum token price saw its highest value this year. At the end of November, the price was close to $600. 

Source: DappRadar

Ethereum

Daily Active Wallets

As mentioned above, daily active wallets decreased by 19% month-on-month. The biggest decrease was within DeFi ecosystem dapps which dived from 54,000 to 45,600 daily active wallets.

While overall activity mostly decreased in the DeFi dapp ecosystem in terms of headline figures there were still important events taking place. Important mergers happened during November. 

Yearn Finance has partnered or merged with at least six different DeFi dapp projects: SushiSwap, Akropolis, Cover, Cream, Pickle. The merge might result in increased activity within the category in the future.

Furthermore, in the past few weeks, exploits undermining confidence in the sector’s security have arisen. For example, Pickle Finance suffered from a complex exploit that saw the attacker come away with over 19.7M Dai. This has made insurance a more important topic in the space that would serve in scaling the sector in a way healthier manner.

The Games category decreased slightly by 4% in November. While the biggest contributor was Axie Infinity that accounted for 65% of total daily active wallets. The increased attention was due to the AXS token release at the beginning of November. 

The NFT Marketplaces category on average decreased by 3% in November. The decrease was triggered by Rarible due to the introduction of fees on the platform and new incentive mechanics. Due to these events, daily active wallets plunged from around 1,000 to 500 at the end of November. 

On the other hand, the Axie Marketplace dapp compensated for the loss, and on average daily active wallets grew from 400 to 765 in November.

Source: DappRadar

Ethereum

Total Value Locked

According to the DappRadar DeFi page, the total value locked in Ethereum DeFi in November showed erratic movements. The first twist occurred due to the liquidity program on the Uniswap token ending. It resulted in Uniswap TVL decreasing from over $3.3B to around $1.6B. 

Nonetheless, the increase of ETH and DeFi altcoin prices positively impacted TVL to reach $13 billion at the end of November. While adjusted TVL was around $11 billion. 

This once again proves the importance of DappRadar’s unique adjusted TVL data that reduces token price effects.

Source: DappRadar

The BTC price surge to over $19,000 within November also made a dent in DeFi TVL as currently, wBTC is the second-largest asset within the DeFi ecosystem as tracked by DappRadar.

Ethereum

Transaction Volume

In November, transaction volume was 12% lower than when compared to October. The biggest decrease is seen within the DeFi ecosystem. While total transaction volume surpassed $41 billion. The DeFi ecosystem accounts for 99% of total transaction volume.

Source: DappRadar

The Games category saw an increase within November. While NFT Marketplaces slightly decreased.

The Games category increased transaction volume by almost $1 million in November when compared to October 2020. The biggest contributors were Axie Infinity and Sorare with $2.2 million and $1.3 million respectively.

NFT marketplaces decreased by 24%. All dapps showed a downtrend during November while the biggest decrease is spotted within Rarible. The transaction volumes decreased by 33% month-on-month due to the introduction of fees. 

On the other hand, the Axie Marketplace showed an increased performance of 40%  increasing transaction volumes by $500,000 in November. 

To conclude, November was all about Ethereum 2.0 news and speculation, token price growth, and increased TVL. Although transaction volume and daily active wallets decreased during November. We believe that improved results lie ahead for Ethereum.

TRON

High-Level Overview

By the end of November, the TRON community approved important proposals that might have an instant effect on network activity. Proposals No 47 and No 48 resulted in increasing the fee of energy and bandwidth units respectively from 0.00001 TRX to  0.00004 TRX. Henceforth, this might increase the cost to dapp developers by over 400%

Despite the news, the TRON blockchain continued to be one of the biggest in terms of daily active wallets in November. We witnessed an increase of 75% month-on-month. While transaction volumes decreased by 13%. 

In November, the price of TRX increased by 20% and reached a $0.032 value. 

Source: DappRadar

TRON

Daily Active Wallets

In November, TRON experienced all-time high figures in terms of daily active wallets surpassing 150,000. This increased daily active wallets by 75% compared to October 2020.

The biggest portion of the increase in daily active wallets was generated by the High-Risk category. The dapps behind such tremendous growth were Tronchain and TronHero. These two dapps generated a minimum of 30,000 daily active wallets each respectively in November.

Source: DappRadar

After the exit scam of SharkTron and SharkDeFi within TRON’s DeFi ecosystem, the daily active wallets dropped by 75% in November compared to October 2020. This still proves that the DeFi ecosystem is very experimental and risky. 

On the other hand, JustSwap performed steadily and stands with 1,753 daily active wallets in November. 

TRON

Transaction Volume

In November, the total transaction volume of TRON was $578 million. While transaction volumes decreased by 13% compared to October 2020.  However, year-on-year there is an increase of 378%.

Source: DappRadar

Exchanges, High-Risk, and Gambling are the biggest contributors to TRON’s transaction volume. Dapps like JustSwap, BeeHive Fast, Tronchain, and WINk generated a combined volume of $385 million which accounts for 72% of total transaction volume. 

To conclude, TRON activity is currently highly concentrated within the high-risk category. While recent announcements relating to increasing developer costs might result in a decreasing number of both daily active wallets and transaction volume in the short term.

EOS

High-Level Overview

EOS has continued to see decreased activity in November.

EOS is the third-largest blockchain in terms of daily active wallets, and second in terms of transaction volumes but as previously reported a downward trend has been spotted month on month. 

By the end of November daily active wallets decreased by 3% while transaction volume has plunged by 46%. On the other hand, the price of the EOS native token increased by 19%. At the end of October, it surpassed $3.

Source: DappRadar

EOS

Daily Active Wallets

As mentioned above, in November the daily active wallets dipped by 3%. This was due to decreased activity in key social dapps such as YUP that saw a 30% decrease from 7,200 to 5,100.

On the other hand, the DeFi ecosystem and Games categories showed an upward trend. They grew by 24% and 22% respectively and compensated for the loss of activity within social dapps.

The biggest driver of the DeFi ecosystem was the DeFis Network with more than 1,000 daily active wallets. While increased activity within the EOS DeFi ecosystem might sound promising, EOS DeFi is still very young and currently lacks sustainability.

On the other hand, the Games category looks way more promising. Despite activity only being generated by a few individual dapps, namely Upland and Crypto Dynasty, they are continuously driving growth for EOS. These two dapps account for 42% and 16% respectively of the total daily active wallets within the EOS game category.

Recently, Upland introduced Tilia Pay allowing players to earn real money by flipping properties. and in the future by selling NFTs via their own virtual businesses (e.g. art galleries, nurseries, car dealerships, etc.). 

A slew of smart updates and feature additions by the Upland team has succeeded in driving retention higher and increased both daily active wallets and transaction volumes. The fact that Upland is mentioned in almost all reports compiled by DappRadar in 2020 is an extremely positive sign for the relative newcomer. 

Source: DappRadar

EOS

Transaction Volume

EOS generated more than $750 million in transaction volume in November 2020. While compared to October it decreased by 46%.

The main dapp behind the decrease was Newdex that plunged by more than $300 million month-on-month. Defibox also followed Newdex’s lead and decreased by $50 million in November.

Source: DappRadar

To conclude, despite a couple of remarkable projects within the Games and the DeFi categories, EOS continues Its downward trend. Even though the blockchain is still in the top three,  it has not been able to sustain stable growth for a while now.

The Best of the Rest

At DappRadar we track 17 blockchains. In monthly reports, we highlight those showing considerable or sustained activity. These blockchains change each month but some have maintained their positions in the best of the rest category throughout 2020 and therefore warrant further analysis.

Binance Smart Chain (BSC)

After an impressive start back in October, Binance Smart Chain finally started to cool down in November. Daily active wallets decreased by 42%. The dapps which are mainly responsible for such results are PancakeSwap, FryWorld, BakerySwap, and Narwhalswap.

A decrease only indicative of the overall reduction in DeFi activity witnessed throughout Q3. We are sure that BSC has a lot more to offer in the future as we continue to watch developments.  

NEO

The NEO protocol experienced a peak in daily active wallets back in mid-September and then activity plunged. However, it has been observed that the protocol has been steadily growing over the past 2 months in daily active wallets by 21%. The DeFi ecosystem dapps Switcheo Network and Flamingo contributed to the growth. 

Waves

Waves protocol in 2020 shows steady growth. In November, daily active wallets were around 369. Neutrino Protocol is responsible for the majority of this activity due to the fact that Neutrino’s stablecoin $USDN was ported into both Ethereum and Binance Smart Chain.

WAX

The WAX protocol has been performing well since July but in November it faced a drop in daily active wallets of 27% compared to October. However, the best performing dapps were AtomicMarket, EarnBet, PROSPECTORS, and GoPepe. 

Hive

Hive protocol is steadily growing month over month. In November, the daily active wallets increased by 3% compared to October 2020. Game dapp Splinterlands and Social dapp Peakd are majorly responsible. 

Source: DappRadar

To conclude, of the 17 blockchains tracked by DappRadar only a few outside the top 3 show interesting projects that are gaining attention. In November BSC, Waves, Wax, and NEO showed the most impressive results, hence why they are included here. 

While these blockchains are still experiencing peaks and troughs in growth. The Hive blockchain proved to be able to maintain stable activity showing sustained growth during the last 3 months.

In-summary

Speculation around the launch of Ethereum 2.0 phase 0 helped to increase the token value subsequently resulting in increased TVL. That is how Adjusted TVL came into the frame as a better metric to measure the overall growth of the DeFi ecosystem. Ethereum 2.0 might serve to increase daily active wallets in the future.

A couple of exploits within Ethereum DeFi dapps generated increased interest in insurance products. Expectedly, we will see more projects that help to secure dapps and ensure overall healthier network growth.

NFT Marketplaces stand as the third-largest category on Ethereum in terms of daily active wallets. Although activity decreased during November, the Axie Marketplace showed positive results in all metrics. 

TRON met all-time high figures in terms of daily active wallets. Time will tell if the new cost structure for developers will decrease this metric.

Despite some successful dapp projects on EOS such as Upland, the blockchain struggles to ensure stable growth. This paints a doubtful future for the EOS protocol.

Although interesting dapp projects are being deployed on other smaller protocols only the Hive blockchain managed to maintain stable activity in November 2020.

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