Ethereum DApp Growth Slows While EOS and Tron Race Ahead: Report

Published:
18/03/2019 18:30
EST. Journalist:


According to new data from RatingDapp, EOS and Tron both gained significant user share over the last week, while Ethereum dApp growth slowed. Ethereum remains the godfather of decentralized applications, with by far the largest user base, ecosystem, and most liquidity. But the landscape is changing quickly, with Tron and EOS dominating in transaction volume.

Ethereum Grows 20% Slower Than The Week Before

Pure volume is not the best way to gauge the actual usage of a smart contract platform, however. Each platform counts transactions differently. Some Ethereum dApps use a platform like Raiden to lower the cost of transactions. All that being said, RatingDapp uses “new address interacting with dApps” as its metric for measuring additional users.

They write in their weekly report:

There were 57,939 new addresses interacted with the [EOS] smart contracts of Dapps last week, recorded a 48% week-over-week increment.

Tron was in second place of the three, adding over 32,000 new addresses interacting with dApps. Ethereum showed about 20% less growth from the week before. RatingDapp also reports that while Tron and EOS “active” users remained roughly the same, the volume of Tron transactions increased drastically:

The weekly active users of EOS and TRON merely remained constant, whereas the transaction volume of TRON Dapps continued going up significantly. After a 207% growth from the previous week, an 87% growth was made, amounted to 14.7 billion TRX, equivalent to 340 million US dollars.

Translation: over $300 million was sent through Tron dApps. All Tron dApps are included in this figure – gambling sites and decentralized exchanges – so the volume is not really in the big leagues yet. Tron itself saw a decent volume across centralized exchanges over the week, as well. Just under $1 billion changed hands in TRX markets across all markets.

Tron did more volume in fiat, while EOS added more users.

How Will USDT Impact Tron Volume?

Metrics used to measure Tron may need to change soon, as the platform is gaining Tether USD. Decentralized exchanges such as TronTrade.io and TRX.market will have a new liquidity option. A true accounting necessarily includes the value of both.

Tron’s weekly volume of $344 million far outpaces EOS’s $125 million. Nevertheless, EOS added more users. Combined they are an order of magnitude higher than the amount of money transacted through Ethereum dApps.

No single metric is useful in measuring the health and success of a blockchain platform, however.

We must take into account everything. Tron and EOS both have incredibly active and loyal communities. Both are seeing significant growth on the strength of their offerings and the health of their networks.

At the same time, there is a lot of crossover between EOS, Tron, and Ethereum users. It’s trivial for someone to have browser extensions for all three platforms. Someone who likes to play in EOS casinos will also like Tron casinos, and vice versa.

One thing that’s undeniable: dApp usage is on the rise. Without useful dApps and valuable tokens to power them, no smart contract platform is viable.

Ethereum remains king in the objectively important ways: it has a huge market capitalization and a lot of liquidity. But the network continues to struggle with scaling as it supports thousands of sub-systems. The rise of alternative platforms drove Vitalik Buterin to criticize them as “centralized piles of garbage” not long ago.

This post was last modified on 18/03/2019 22:06

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P. H. Madore @bitillionaire

P. H. Madore has written for CCN since 2014 and is currently Head of Crypto. Please send breaking news tips or requests for investigation to paul.madore@ccn.com. His website is http://phm.link

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