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DeFi Boosted Ethereum Dapps Despite Market Slump

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Last updated: June 26, 2023 06:54 EDT

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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Last updated:

June 26, 2023 06:54 EDT

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Decentralized finance dapps are experiencing “huge growth,” per a new report – with Ethereum-powered services leading the way.

A Dapp.com report found that in Q3 “over USD 525 million was performed by finance services dapps” (decentralized apps). And 27.6% of dapp users began using decentralized apps so they could access financial service offerings.

Ethereum-based decentralized finance (DeFi) dapps account for the vast bulk of that figure, making up 88% of the total volume in the finance sector category.

Per Defi Pulse, the Ethereum-based lending service Maker is still something of a monolith in the DeFi scene, with a dominance rate of almost 51%.

The Dapp.com data shows that Ethereum-powered DeFi dapps picked up 310,000 new users in Q3, the largest quarter-on-quarter growth rate to date.

“Most of the active Ethereum dapp users in Q2 didn’t use any ETH dapps in Q3 – there are only slightly more than 80,000 ETH holders used dapps in both Q2 and Q3. But the wave of DeFi has given the best growth for Ethereum dapp users,” according to the report.

The figures also show that the Ethereum blockchain still has the largest amount of dapps, with 1,721 out of a grand total of 2,791. EOS and Tron followed behind with 466 and 467 respectively.

Gambling and gaming dapps remain favorites, with 439 out of all 1,350 active dapps and 44 out of 148 new dapps devoted to betting and other forms of gambling.

Although user activeness is down from Q2 at -30%, a whopping 58% of Ethereum dapp transactions in Q3 were DeFi and finance-related, making for a total volume of over USD 466 million.

The report examined data from dapps built on the aforementioned platforms, as well as Steem, TomoChain and IOST, and the authors say they discounted data from dapps that appeared fraudulent, had security issues or featured sensitive contents.

Here are some other insights from the report:

Tron is the least diverse of all the featured blockchains, with the vast majority of its dapps falling in the gaming category.
40% of EOS dapp users are still active, far more than any other rival. By contrast, Ethereum dapp user retention figures were just 5%.
Dapp activity is down: Only 36% of dapp users from Q2 are still active
Dapps built on the surveyed blockchain platforms saw total transaction volumes of USD 2.03 billion in Q3 (down 40% on Q2)