Dapp.com Q2 2020 Dapp Market Report: Big gains for Ethereum in users and transaction volume, led in large part by the DeFi boom

According to the 2020 Q2 Dapp Market Report, active users on Ethereum doubled in a quarter with a total of over 1 million. DeFi applications powered the increase, with transaction volumes reaching $ 5.7 billion in June and accounting for more than 97% of activity on the Ethereum blockchain.

Dapp.com’s 2020 Dapp Market Report shows Ethereum users doubled compared to the first quarter

How important Ethereum is to the success of decentralized finance (DeFi) and how much DeFi has dominated Ethereum in recent months. The issuance of Compound’s COMP governance token in June helped drive DeFi to increase in the second quarter, more than doubling the total DeFi transaction volume compared to May and pushing Ethereum’s total DeFi volume to more than $ 10.3 billion in the whole quarter. EOS and TRON, Ethereum’s two closest competitors in the DeFi world, recorded quarterly volumes of $ 1.89 billion and $ 260 million, respectively.

On all blockchains, DeFi’s 24-hour trading volume reached an all-time high of more than $ 600 million on June 21.

Dapp.com measures active dapp users as a total of all users who interacted with dapps throughout the quarter. Dapp users active on Ethereum have increased from about 637,000 in Q1 to over 1.25 million in the second quarter. DeFi users are active daily, a narrower type of wallet address that regularly interacts with DeFi-based products. Ethereum also increased from below 7,700 in Q1 to over 11,200 in Q2.

The Q2 2020 Market Report also noted that:

“Brave browser’s BAT token topped the charts for total transaction volume in the quarter, coming in more than $ 930 million. The impressive volume was fueled by ‘yield farmers’ taking advantage of wrinkles in the COMP distribution system to boost their earnings. ”

The shenanigans led to a recent governance vote to regulate COMP distributions to encourage higher volume and liquidity towards tokens with broader use cases, such as of DAI and USDC.

Ethereum saw 45 new dapps launched in the second quarter, while the next closest rival, TRON, recorded 33 new applications. Data shows that developers can spend more time on existing dapps instead of releasing new ones, only 99 new applications will be released on all blockchains in the second quarter, compared to 135 in the quarter—early 2020.

The second quarter is another dominant quarter of Ethereum, noting a considerable increase in users and daily transactions both sequentially and compared to competing protocols like TRON and EOS. With the DeFi increase based on Ethereum and the momentum continuing to increase, it seems increasingly difficult for any challenger to be able to disassemble the current DeFi darling.

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