It turns out that Ethereum transaction volumes are skyrocketing once again. Well, at least when it comes to decentralized applications (dApps).
Diar is one of the most prolific crypto analytics firms in recent years and it once again published quite an intriguing report. It turns out that Ethereum transaction volumes are skyrocketing once again. Well, at least when it comes to decentralized applications (dApps).
Contrary to what you might exepct, the inflow of new dApps on Ethereum remains low, which means the volumes are mainly generated from already existing applications. In April, the volume of Ether spent on dApps registered a new high, briefly breaking the previous record from December 2018. Diar clarifies that in the last four months there is a persisting growth in on-chain transactions. To be more precise, 776,000 ETH have been transacted.
“Nearly $132Mn was transacted on DApps, mainly Decentralized Exchanges (DEX) and gambling applications, also marking a 4-month in a row growth and an 8-month high. Versus March, this was a 46% increase and a whopping 186% in comparison to volumes seen at the start of the year when they hit an all-time low,“ the report reads.
So far this is the longest growth period recorded in the whole Ethereum dApp history. In contrast, for the same period only 88 new dApps have been released. The numbers are significantly lower compared to last year. In fact, they equal those from 2017.
“April closed off the month with a mere 88 Decentralized Application (DApps) being deployed hitting levels not seen since the start of 2018. Last month wraps up a continuous declining trend in deployment since September 2018, bar a flurry of new DApps that went on-chain at the end of last year which marked the peak of development to date.”
Bitcoin on-chain transaction also hit new highs, previoulsy unseen since 2017. Earlier this year, the co-founder of Ethereum, Vitalik Buterin proposed higher rewards for the implementation of the new proof-of-stake algorithm on the Ethereum blockchain.
Interestingly, Diar suggested that “Developers will likely continue hitting roadblocks with infrastructure still far from scale and a user experience effectively in their first iteration on Ethereum. And with new blockchains coming online, developers may begin to split their focus.”