The Black Swan of 2020, the Coronavirus outbreak that triggered the global market sell-off and resulted in crypto carnage had a direct impact on the decentralized applications (Dapp) market in Q1 of 2020, states the latest report of Dapp Review.
In the first quarter of 2020, $7.9 billion in total transaction volume, an increase of 82.2% from Q1 219, was recorded across 13 blockchains.
However, Ethereum, EOS, and Tron remained the three major protocols that contributed over 99.1% of the total volume. Among these toppers, Ethereum however was the only one with positive YoY growth and both Tron and EOS had their users and transaction volume declining.
The quarter first of 2020 saw a total of 254 new dapps launched, 60% fewer than 1Q19.
When it comes to the top categories by active address in the Dapp space, games, exchanges, and casinos lead although the total active addresses that interacted with dapps fell by 22%.
Casino dapp, a popular category from last year also recorded a drop of 64.4% in volume this quarter.
Despite the COVID-19 and subsequent drop in the activity in the Dapp space, Ethereum still emerged as the winner. In total, Ethereum dapps recorded $5.64 billion in transaction volume, registering an increase of 652% compared to $743 million in Q1 of 2019.
Ethereum remained the king but suffered a cut as well. The active dapps on its network dropped by 173 to 641. These active dapps have been from different categories, Game (180), Exchange (72), Casino (71), and Finance (33).
The main contributor to Ethereum’s success however, was Decentralized Finance (DeFi) with the largest transaction volume, which has been its “growth gist” since 2019.
Source: DeFi Pulse
However, most of the volume of DeFi projects are in ERC 20 tokens like WETH, DAI, and USDC instead of Ethereum’s native token Ether. So, it makes sense that a big chunk, 84%, $5.64 billion of transaction volume on Ethereum was generated by ERC-20 tokens.
Also, the massive sell-off on March 12 saw the transaction volume of Ethereum dapps climbing to a historic peak of $326 million. This record volume was primarily because of MakerDAO, dYdX and other DeFi projects.
But now, Tron is jumping in the ring to take a share of the DeFi space. Recently, Tron creator Justin Sun unveiled Djed, a MakerDAO-like stablecoin system that will become an integral part of its DeFi ecosystem.