Decentralized finance projects will act as the basis of the cryptocurrency economy next year. So far, the transaction volume of DApp has risen to $270b this year, with 95 percent of the number describing Ethereum’s decentralized finance ecosystem. That’s an astounding 1178 percent increase from a total of $21b last year.
Today, the distributed ledger data provider announced the figures in its yearly DApp Industry Report, summing up the highs and lows of the record-high year for decentralized application-founded economics.
The report said that the money flowed from Bitcoin to Ethereum throughout the year, leading to an increase in the price of Ethereum – from 0.018 Bitcoin on January 1 this year to its price at the moment of 0.028 Bitcoin.
DappRadar speculates that enticing decentralized financing returns were the primary trigger for BTC flowing to ETH, with Wrapped Bitcoin and RenVM’s renBTC having important obligations in tapping BTC’s huge liquidity reserves for decentralized applications. NFT marketplaces demonstrated their potential with multiple sales worth more than $100,000.
Saying this year was the one in which decentralized applications attempted to grow in any way they can. The report saw that only ten decentralized finance DApps made up for 87 percent of ETH’s overall transaction volume.
These ten DApps were made up of more than 1 million active users in Nov., with the top 3 — DeFi Swap, Uniswap, and Compound — gathering a total of 930,000.
The report said that the restrictions of ETH became transparent in 2020 as the network hit a wall in terms of scalability, with median gas prices a few times bigger than in 2019.
Congestion on the network sped up the jump in the number of rivals for the 2nd part of 2020, with decentralized-application-friendly platforms such as Binance Smart Chain and Wax making up for a fast-rising portion of total decentralized application transactions worth.
The seriousness of hacks and exploits of unchecked or incorrectly checked smart contracts utilized by decentralized financing ventured is also rising. Over $120m was stolen in twelve big incidents this year. As an outcome, insurance is probably going to be the next major subcategory of the DeFi ecosystem.
Although much attention has recently been paid to the “NFT Marketplaces” class, there has been only medium growth throughout 2020. The “Games” category stayed flat, and the “Gambling” category ended a bit lower.
The coronavirus was actually used to better position DApp ecosystems by pushing their usage as problem-solving measures: The worldwide spread of the coronavirus would seem to have brought the spotlight to non-centralized solutions as discussions deepened over the allocation of basic income and global database management solutions.
DeFi is going to have an even more influential role this year and make up the cryptocurrency economy base overall categories, like NFTs, games, logistics, and the rest of the decentralized application categories.