Shushuo DApp: The rapid growth of DeFi and DEX may make Ethereum surpass Bitcoin
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Carbon chain value (ID: cc-value)
, Author: DappRader, Editor: Bai Ye, reprinted by Odaily with authorization.
Recently, the decentralized application analysis company DappRadar released the DApp analysis report for the second quarter, which evaluated indicators such as daily active wallets, transaction volume, and transaction value, aiming to gain an in-depth understanding of each independent blockchain and the wider DApp ecosystem. situation. Next, let the carbon chain value first review the DApp industry in the second quarter with everyone.
Overall, the DApp industry looked promising throughout Q2. After analyzing 13 blockchains, DappRader found that the total number of DApp daily active independent wallets has exceeded 70,000, and the top three are Ethereum, TRON and EOS. In addition, the total transaction volume of DApp agreements in the second quarter reached 12 billion US dollars, an increase of 4.5 billion US dollars from the first quarter, of which Ethereum transaction volume accounted for as high as 82% (the main reason is most likely due to the rapid development of the DeFi industry), while EOS and TRON Immediately afterwards, their average daily network activity and user base size also increased in the second quarter.
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Several key points of the development of the DApp industry in the second quarter of 2020:
1. Even though gas prices are rising rapidly, Ethereum is still one of the most important blockchains in the encryption market. Compared with the first quarter of 2020, the value of the blockchain increased by US$4.5 billion in the second quarter.
2. TRON is also trying to introduce DeFi to diversify its DApp product portfolio, but 80% of its DApps are still gambling and high-risk applications.
4. The battle between Hive and Steem is still going on, but as games such as Splinterlands migrate to the Hive blockchain, it will bring huge advantages to Hive.
5. In the second quarter of 2020, the other two blockchains that performed well in the DApp field were WAX and ThunderCore, but their growth was mainly driven by gaming DApps.
In fact, due to the rise of DeFi liquidity mining, Ethereum once again attracted the attention of the entire encryption industry in the second quarter of 2020. Therefore, in this article, we will focus on analyzing how DeFi and DEX have affected Ethereum in the past quarter.
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Overview of Ethereum’s performance in the second quarter
First of all, Ethereum 2.0 is expected to be launched in the fall of 2020. This major event may not only trigger an increase in the price of ETH, but also stimulate a substantial increase in the adoption and popularity of the Ethereum blockchain.
Finally, from the perspective of protocol currency pricing, ETH is still the "second strongest" cryptocurrency in the cryptocurrency industry, although there are still high price fluctuations. We have witnessed the price of ETH break through $300, and also witnessed a sharp drop to around $110 on "Black Thursday" in March 2020. However, if we compare the average price in the first half of 2020 with the average price in the first half of 2019, we will find that the price of ETH has actually increased by 11%.
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It is an indisputable fact that the activity of game DApps has declined. Compared with the first quarter, the number of daily active wallets of Ethereum game DApps has decreased from 10,000 to 2,000.
However, the so-called sun rises in the east and rains in the west. As of the end of the second quarter, although game DApps suffered heavy losses, the two major decentralized application categories, DeFi and DEX, both showed signs of positive growth, with the average number of daily active wallets reaching nearly 5,000 and 4,000 respectively. With this in mind, we see the growing DeFi and DEX ecosystems making up for the losses that gaming-like dapps have done to Ethereum.
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Ethereum: DeFi
If you want to talk about Ethereum in 2020, DeFi is definitely an unavoidable topic, because this field has achieved amazing development this year, but it also brings us uncertainty and volatility. The following four aspects (events) Worthy of attention:
1. On "Black Thursday" on March 12, 2020, the overall crypto market plummeted, and Ethereum was no exception. As a result, a large number of DeFi project mortgages fell below the mortgage threshold, triggering liquidation procedures, including MakerDAO. The MakerDAO liquidation program is carried out in the form of mortgage auctions, and users can obtain mortgaged Ethereum by bidding for DAI. However, due to the market crash this time, some liquidators actually won the auction of the Ethereum collateral liquidation program with a price of 0 DAI. This resulted in MakerDAO having as much as $4 million in outstanding loan debt.
2. Security incidents: DeFi projects including Uniswap, Lendf.me, and Curve were all attacked.
3. Bitcoin began to participate more and more in DeFi projects, and tokens anchored to BTC appeared on the Ethereum blockchain.
4. The decentralized financial protocol Compound financial token COMP has become a DeFi unicorn and brought a new "Yield Farming" model to the encryption market.
(Carbon chain value note: The so-called "Yield Farming" refers to the use of liquidity mining to provide liquidity for DeFi projects to earn income. Usually, you only need to mortgage some of the more popular stablecoins to earn high profits, but if Market volatility can also cause huge losses.)
Overall, 2020 can be regarded as a "very fascinating" year for the DeFi industry. Of course, if we carefully analyze some key indicators, we may have a deeper understanding of the development of DeFi from the numbers.
At the beginning of 2019, almost no one could have foreseen such an amazing development of DeFi, a decentralized application category on Ethereum. At that time, the number of active DeFi wallets was only a "poor" 200. But by the end of the first quarter of 2020, we saw that there were already about 1,500 active wallets in the DeFi field, and by the end of the second quarter of 2020, this number had soared to 4,000, which means a quarter-on-quarter growth rate of 200%, The year-on-year growth rate is as high as 500%.
You will find that DeFi has become the third largest decentralized application subcategory of Ethereum in just six months, and the transaction activity accounts for 24% of the total activity of the entire network.
Not only that, but most DeFi dApps are showing a trend of increased activity, with the biggest increase coming from the COMP token issued by decentralized finance protocol Compound. Almost 45% of all activity in the DeFi category came from Compound, a staggering 1,000% increase from the previous quarter. The second place belongs to Synthetix, a DeFi protocol with 550 daily active wallets, and the third place is 1inch, with about 490 daily active wallets. In fact, compared with the same period and quarter last year, the number of daily active wallets in all major DeFi decentralized applications has increased significantly.
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Next, the second indicator we want to focus on is the value of DeFi.
If we analyze the DeFi transaction volume indicators, we can find that the total value of DeFi in 2020 has exceeded 11 billion US dollars, which is equivalent to 2.5 times the total value of DeFi in 2019, which also means that the year-on-year growth rate has reached an astonishing 1410%. The year-on-year growth rate is also as high as 150%. The results are obvious. The DeFi category is already the number one decentralized application category on the Ethereum blockchain, and in the second quarter, its value has accounted for 80% of the value of the Ethereum blockchain.
According to the decentralized financial DApp loan data disclosed by DeFi Pulse, we can see that the growth trend in this field is very obvious. At the end of the second quarter of 2020, the total value of DeFi locked positions has increased by 140% compared with the first quarter of 2020, reaching 1.2 billion US dollars.
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All in all, we have witnessed huge growth peaks in the second quarter of 2020 for the three indicators of average daily active wallets, transaction volume, and total locked value. This brings us to understand that not only is DeFi already the largest decentralized application category on Ethereum, but it is also driving Ethereum’s growth in terms of value.
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Ethereum: DEX
Regarding the above-mentioned decentralized exchange DApp transaction volume, we have seen a significant increase in the second quarter of 2020 compared to the second quarter of 2019, with an increase of 146%. Compared with the increase of 39%.
Summarize
After the “Black Thursday” event on March 12, 2020, we observed a sharp increase in trading volume on decentralized exchanges in the second quarter of 2020. Compared with the first quarter of 2020, the trading volumes of four decentralized exchanges, IDEX, Uniswap, 0x, and Bancor, increased by 144%, 109%, 44%, and 112%, respectively. On the other hand, compared to the second quarter of 2019, we also observed that the trading volume of the two decentralized exchanges, Kyber and Uniswap, increased by an astonishing 220% and 624% respectively in the second quarter of 2020, which are also the two largest growth rates. home decentralized exchange.
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Summarize
