2020 Q2 Dapp Market Report by DappReview

DappReview

2 months ago

Q2 Highlights

  • The total transaction volume of dapps market in the Q2 hit an all-time quarterly high of $16.73 billion, increased by 153.7% compared to 2019 Q2. Ethereum took 85.3% of the market share in terms of volume, followed by TRON and EOS which contributed about 14.3% together.
  • Ethereum-based DeFi projects outperformed Q1, increased by 403% in transaction volume; Many projects doubled market cap in Q2.
  • Risk dapps became popular on Ethereum and TRON. Several infamous Ponzi-like dapps contributed a large percentage of gas fee on Ethereum.
  • Casino dapps remained the most popular category on TRON. More projects in TRON DeFi space.
  • NFTs and CryptoArt performed well in Q2, potentially becoming new topics of use cases of blockchain technology.

This report includes two parts. Part one will focus on data and charts, presenting the latest stats of the dapp industry in the second quarter and some interesting findings. Part two will be a re-cap of the key projects and updates and what to expect in next quarter.

Ethereum

The total transaction volume of Ethereum dapps in 2020 Q2 was $14.27 billion, an increase of 334% compared to the 2019 Q2($3.28 billion).



In the second half of June, several DeFi projects including Compound, Balancer and Curve had launched liquidity mining, which led to the surge of ERC-20 tokens transaction volume. On June 21, a new record of $988 million daily transaction volume was made on Ethereum.


In 2020 Q2, the Ethereum dapp ecosystem remains diverse and the performance was very steady compared to other blockchains. Dapps in categories like Game and Casino have maintained the level of last quarter, while Finance and Exchange dapps have gained huge growth over the last 3 months.

In this report, we categorize lending projects (eg, Maker, Compound, bZx, etc) and derivatives projects like Augur as "Finance", and decentralized exchanges (eg, Kyber, Uniswap, Tokenlon, etc) as "Exchange". These two types of projects together are typically referred to as the DeFi sector.

Compared to 2019 Q2:
  • The transaction volume of Finance dapps reached $9.5 billion, an increase of 1,391.2%
  • The transaction volume of Exchange dapps reached $4.21 billion, an increase of 101.6%


Users of Risk dapps also increased rapidly. The average DAA (Daily Active Addresses) of Ethereum in 2020 Q2 was 44,359, an increase of 202%, of which the Risk category contributed over 60%. If we exclude those Ponzi and scam dapps, the average DAA is 18,103, with a growth of 34.8%.

The total transaction volume of Risk dapp in Q2 reached $405 million, increased by 78.6%; while the total users number exceeded 1.16 million, 73.9% of Ethereum total dapps users, an increase of 1331.7%.


Affected by the huge numbers of Risk dapp transactions and expensive gas fees, the users of Game dapps continued to decrease, which is 29.21% lower than the last quarter.

DeFi projects had a massive growth in Q2, gaining a lot of traction and users. The users of Finance dapps exceeded 140K, increased by 1236.3%, while the users of Exchange dapps exceeded 170K, 73% higher than 2019 Q2.


In the first half of 2020, the total value locked in DeFi rose steadily after the March 12th plunge and exceeded US$1.7 billion at the end of last quarter.

ERC-1155

Introduced by Enjin CTO Witek Radomski, ERC-1155 was accepted as an official Ethereum token standard last year.

ERC-1155 is the first and only Ethereum token standard that allows users to mint both fungible (identical) and non-fungible (unique) assets in a single smart contract—enabling the creation of every type of asset, from currency and real estate to gaming items and digital art.

With all of these powerful features, over 150 projects have become early adopters of ERC-1155 and locked ENJ into their gaming items, collectibles, digital art, discount codes, membership cards, you name it.

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In 2020 Q2, the average daily transaction on the Enjin platform was 1,933, and the average daily transaction volume was $1,363. By now, there have been over 1 billion ERC-1155 tokens minted on Enjin platform, backed by over $1.5 million value of ENJ token.

CryptoArt

CryptoArt has been active since the last quarter of 2019. This report has collected and summarised the information from three CryptoArt platforms, SuperRare, KnownOrigin, and MakersPlace.


The total transaction volume of three CryptoArt platforms has increased to $840K while the number in 2019 Q4 was only $267K, with over 50% increase for two consecutive quarters. Besides, the newly released CryptoArt platform four months ago, Async.Art, has reached a quarterly transaction volume of $222K.


By now, there have been over 2,000 artists and nearly 3,000 collectors on the four cryptoart platforms.


There had been 768 active dapps based on the Ethereum network in 2020 Q2, which is 127 more than 2019 Q2.
  • 40 active Finance dapps, which is 24 more compared with Q2 last year;
  • 93 active Exchange dapps, increased by 14;
  • 146 active Game dapps, 63 fewer compared with 2019 Q2;
  • 84 active Casino dapps, almost 30% less than 2019 Q2;
  • 155 active Risk dapp, which is a huge increase as it is 86 in last year.

TRON



The total transaction volume of TRON dapps during 2020 Q2 was $370 million, down 10.4% compared to Q1. The casino dapps continued to be the main volume driver in TRON dapps ecosystem, contributing $312 million in transaction volume, 83.8% of the total transaction volume.


In terms of categories, the TRON dapp ecosystem became more diverse. Two projects, JUST and Oikos, joined the TRON DeFi ecosystem.
  • In Q2, the total transaction volume of Finance dapps was $17 million, which was 172 times of the first quarter. JUST and Oikos contributed $12.52 million and $610K respectively.
  • Risk dapps on TRON grew faster in the second quarter, with a total transaction volume of more than $12 million which was 16 times of Q1.
  • In terms of Game dapps, the total volume in Q2 exceeded $4.3 million thanks to the outstanding performance of ChainZ Arena and CryptoTree. The performance increased 83.4% compared to Q1.
  • The transaction volume of other categories was basically similar to the first quarter.



The total number of active addresses of TRON in Q2 was 521,774. On a daily average, the number was 26,250, an increase of 5% from Q1. In terms of categories, users in Game, Other, Risk, and Exchange have rebounded.
  • The number of active addresses in Games was 21,414, increased by 58.1% compared to Q1.
  • The number of active addresses in Risk was 107,848, increased by 190.8%compared to Q1.
  • The number of active addresses in Exchange was 43,873, increased by 139.6% compared to Q1.


In Q1 2020, there are 350 active dapps on TRON in total, which is 82 less than 2019 Q2.
  • 50 active Game dapps, decreased by 16.
  • 120 active Casino dapps, decreased by 22. It is the category with the most TRON active dapps.
  • 5 active Finance dapps, an increase of 4.
  • 7 active Exchange dapps, which is the same as last year.
  • 102 active Risk dapps, a decrease of 63.

EOS




The total transaction volume of EOS in Q2 is $2.02 billion, which is 16.7% increased compared to Q1 ($1.75 billion). The average DAA of EOS in 2020 Q2 was 18,520, an increase of 62.3%. And it's worth noting that the DAA numbers were inflated because some of the EOS based casino dapps are using bots to manipulate the users' stats. (The same thing happened as well on TRON and ETH dapps, especially in Risk and Casino category)


The transaction volume of EOS dapps mainly came from Casino and Exchange dapps, accounting for 99.6% the total volume:
  • Over $439 million for Casino dapps, an increased of 8.8%; and
  • Over $1.57 billion for Exchange dapps, increased by 25.3%.


Game dapps like Crypto Dynasty, Upland, and Chainz Arena performed well in Q2, becoming the most popular games on EOS. The total transaction volume for Game dapps was $1.88 million, increased by 85.1%. And the total active address was 34,577, which was 40.3% more than last quarter. Meanwhile, the total active address of Casino dapp was 40,139, an increase of 64.2% compared with Q1.


In 2020 Q2, there are 374 active dapps on EOS, 7 fewer than 2019 Q2.
  • 61 active Game dapps, 6 more than last year;
  • 160 active Casino dapps, till the largest category despite the decrease of 40;
  • 8 active Finance dapps, 5 more than 2019 Q2;
  • 25 active Exchange dapps, 4 more than 2019 Q2;
  • 21 active Risk dapps, increased by 10.


In terms of transaction volume, Ethereum dominated the DeFi sector (Finance and Exchange), while EOS and TRON together contributed most of the transaction volume of the Casino category.


In terms of active addresses, Ethereum dominates in sectors like Games, Exchanges and Finance. TRON tops the Casino category.

Steem & Hive

Hive is a forked blockchain from Steem after Steem was acquired by TRON foundation. Many Steem dapps had migrated to Hive right after Hive launched the mainnet on March 20. The former most popular Steem game Splinterlands moved to Hive on June 1st, which led to an increase of the daily active users of Hive by 136.2%, and a decrease of 58.8% for Steem.


The total transaction volume for Steem was $905.3K in Q2, increased by 23.4%. The largest dapp on Steem is a Social dapp, Steemit, with average daily active addresses of around 1,600.


On the other hand, the total transaction volume of Hive is $1.09 million. Splinterlands was the most popular dapp on Hive, which contributed 87.2% in transaction volume.

IOST


IOST is a high-performance blockchain based on "Proof of Believability" (PoB). In 2020 Q2, there are 36 active dapps on IOST, of which Game dapp XPET and Casino dapp iPirates are the two most popular dapps. The total transaction volume of IOST dapps was $3.51 million, decreased by 65% compared with 2020 Q1.

TOMO


TomoChain is an innovative solution to the scalability problem of Ethereum. In 2020 Q2, there are 17 active dapps on TOMO, and Casino is the main volume-driver dapp category. The total transaction volume is $14.04 million, which is 8.7% more than Q1. Casino dapp Maxbet performed well, contributing 21.8% in transaction volume for TOMO.

NEO


Neo is one of the earliest open network blockchains built for the smart economy. Across the Q2, the total transaction volume of NEO is $10.95 million, almost the same as Q1($11 million). The volume of the DEX Swicheo had increased for over 500% since launching the mechanics of SWTH staking. Neoline wallet has supported Neo-based NFTs for users to trade NFTs easily.

ICON


ICON Network is a general-purpose blockchain protocol based on the native cryptocurrency ICX that can run smart contracts, adopt the BFT-DPoS (Delegated Proof-of-Stake) consensus protocol, and use an economic-governance protocol called DPoC (Delegated Proof-of-Contribution).

In 2020 Q2, the total transaction volume of ICON dapps is $20.88 million, increased by 2.2% compared to 2020 Q1. The most popular casino dapp ICONbet contributed $20.1 billion, accounting 96.4% of the total

Q2 Recap & What to Expect

A lot of progress and awesome products have been made by BUILDers in the dapp space. Here's a list of selected Q2 updates you wouldn't want to miss. (Due to the time constraint, we may not be able to cover all the important events/updates/projects, feel free to make a comment if you wanna add something)

NFT & CryptoArt

Cryptovoxels In 2020 Q2, Cryptovoxels had updated from v3.25.0 to v3.81.0, including a UWP build that was released on May 11th. Cryptovoxels performed well on land selling: it completed final Origin City land auctions in Apr and sold out its new Proxima Island lands in May. Somnium Space Somnium Space partnered with MAXIMA, a real estate agency in Czech Republic, to provide VR estate services such as leasing and construction to the public. On May 8, Somnium Space released the feature of parcel renting. Two weeks later, the second 10-week land sale ended with a total income of over 2,000 ETH. SuperRare SuperRare held a virtual party in Cryptovoxels to celebrate its 2nd birthday. In May, an auction was launched on SuperRare during Ethereal Virtual Summit 2020, 50% of the sales were donated for fighting COVID-19. In late June, SuperRare held its first VR art show in VRChat and started to support the tokenization of 3D artworks. Moreover, SuperRare announced funding from the DAO investment group The LAO. In Q2, 2439 artworks were sold on SuperRare with the average price 60% higher than Q1, crossing the $1,000,000 mark for the amount earned by artists. KnownOrigin KnownOrigin had its 2nd anniversary on Apr 10th. In mid-April, KnownOrigin opened its first VR gallery in Cryptovoxels. Artist Trevor Jones made a selling record at 55.55ETH with his artwork “The Bull'' on KO. At the end of June, KO opened its gallery in Decentraland. Now, there are over 300 artists created 5,000+ artworks on KO and the total volume has already broken 1,500 ETH. Decentraland Decentraland launched a donation with Binance to raise funds for those who are fighting against COVID-19 on the front line. They raised $5,700+ USD from the community and Decentraland donated 10,000 USD. Decentraland launched a Content Creator Program In May to help users creative projects on Decentraland. In June, the first-ever Art Week was held in Decentraland. All the major platforms joined in the activity, including SuperRare, MakersPlace, Known Origin, Mintbase, PixelChain, OpenSea, and Async Art. PixelChain Making its public debut in late April, PixelChain allows users to create 32x32 pixel art and mint it on ETH blockchain as NFTs. A couple of weeks later, the PXC NFTs could be displayed in Cryptovoxels and Decentraland. In May, PixelChain partnered with blockchain game Ethernal for a pixel art contest. The winning artworks would be added to the game. MakersPlace In Q2, there were 1600+ active artists on MakersPlace who created 30k+ artworks in total and earned $275k+. The artworks of top artist Javier Arres have been sold for over $30K USD in the last 6 months. The number of collectors/buyers on MakersPlace exceeded 500 and 5k+ artworks were sold for over $320k. The new function DROP can highlight and feature creators, and an auction for a newly created piece of theirs. Besides, MakersPlace announced a key partnership and launch of new artwork and a comic by famed DC / Marvel artist Jose Delbo. First time selling his work as an NFT. Async.Art Async.Art is a programmable artwork platform. In Q2, 18 Masters, 114 Layers were sold. The total sales reached 414.89 ETH(≈ $82K). In June, it launched Async.Art App, the first Cryptoart gallery app for Smart TVs. Async.Art also has a designated gallery as a part of Genesis Art Week festivities in DCL.

Game

Skyweaver In Q2, SkyWeaver kept optimizing and updating. In mid-April, 3 new heroes and 150 cards were updated, the cards trading market and the hero selection interface were redesigned. On April 19, the second Sky Champions tournament started. In May, a new XP Boost system and a Time penalty mechanism were introduced. In June, more updates including a series of in-game visual effects, heroes' skin pictures and backgrounds. The Sandbox In April, a new version of VoxEdit software and the Game Maker’s Alpha were released. The Sandbox launched its new tokens Gems and Catalysts that will define the tier and scarcity of the NFT ASSETS. The Sandbox built partnerships with role-playing game Chainbreakers and MMO Strategy game League of Kingdoms. In early June, the Sandbox MoonSale, a one-month special LAND Presale started. Axie Infinity Axie Infinity is a digital pet blockchain game with adorable characters. In April, the first Esports-focused DAO, MetaClan, ran an Axie breeding tournament. Then, their COO, Aleksander AKA Psycheout, was voted in as a new Board member of the Blockchain Game Alliance (BGA). Now, the fourth to sixth season of Axie finished, and the seventh season is in progress. SoRare On May 12, Football collectible card game Sorare migrated from Loom to the Ethereum protocol. In terms of market operation, Sorare built cooperation with Opera Browser. It also released an affiliate program where participants can earn rewards. Moreover, Real Betis, FC Shakhtar Donetsk, PFC CSKA, Gimnasia joined Sorare, and the chief coach of Gimnasia, Diego Maradona is available in this game. In mid-June, the unique card of Cristiano Ronaldo was sold for a Record 59.181 ETH. At the end of this month, the K League became the first Asian sports league to join Sorare and the Major League Soccer Players Association (MLSPA) and its roster of 700+ current players are available on this game. God Unchained On June 11, Blockchain TCG God Unchained released version 0.23, engine, and system being updated. Trinket, board and card back functionality has been integrated into the official marketplace. Last month, GU published a series of cards, called Welcome Set, for new users, which is a collection of 70 cards. These cards are not on the blockchain and cannot be traded or fused. My Crypto Heroes Since the end of April, MCH has been banning users from creating accounts with their email. People logging through Google have to transfer their account to an Ethereum Address. After season#16 began, MCH changed the system of Replica Heroes, which was intended to get more players to join PvP battles. At present, season#18 is underway. Meanwhile, MCH launched a Community Event Support Program for facilitating community events. In mid-June, MCH held the charity Raid event with Binance Charity to help the “Crypto Against COVID” campaign in Japan.
Nine Chronicles
Nine Chronicles, a blockchain-based RPG backed by Ubisoft and Planetarium. The game features a fantasy world where players could explore the dungeons, craft and trade items. More than 1500+ players joined its closed beta. The public pre-sale will be on Jul 15th. Splinterlands On April 9, Splinterlands integrated with the WAX Blockchain. Moreover, Splinterlands began to accept Hive and HBD payments in early April. At the end of that month, Splinterlands integrated Hive-Engine, which made it possible for users to send their in-game tokens to hive-engine. On June 1, Splinterlands migrated from Steem to Hive Blockchain. Also, it finished its API update, the steemmonsters.com domain for all API access will be phased out. Metaboss Metaboss, designed by Neon District's team BlockadeGames, is an idle MMO that gives all your favorite NFTs a second strategic use-case. NFTs of many games are supported, such as CryptoKitties, MyCryptoHeroes, GodsUnchained, and The Sandbox. On May 19, the Metaboss soft-launch and public trial started. Users can exchange their idle NFTs for equivalent Metaboss in-game currency. CryptoFights CryptoFights is a blockchain fighting game designed by Kronoverse, an independent game development company, also a member of ESIC(Esports Integrity Commission). On April 24, CryptoFights reached cooperation with ESL, the world’s largest esports company. On June 1, CryptoFights secured further funding via technology investment firm Persimmon Hill Ltd. and technology entrepreneur Calvin Ayre. On May 11, CryptoFights moved to the BSV blockchain from Ethereum-based Enjin to tokenize users’ in-game items because of the lack of scalability of the Ethereum blockchain. But some questioned its real purpose because Calvin Ayer is exactly a backer of BSV.

DeFi

Maker WBTC, TUSD, KNC, and ZRX were accepted as collateral. The cap of DAI has been increased to $123 million. Single-Collateral Dai (Sai) was shut down on May 12th. Dai became one of the favorite crypto in Latin America. More projects accept Dai as a payment method, including Blockchain Art Exchange, Decentral Games, etc. Marble Cards and Battle DAO got 1500 Dai bounties from MakerDAO Dai Gaming Initiative. WBTC, TUSD, KNC, and ZRX have become the collateral for DAI. The cap of DAI has been increased to 123 million USD. Single-Collateral Dai (Sai) was shut down on May 12th. Uniswap On 18th Apr, Uniswap was attacked by a hacker, about 1,278 ETH was stolen. On 24th Apr, Paradigm invested 1 million USD as the lead investor in the Uniswap seed round. The USDC Bootstrap Fund has provided 1 million USD of liquidity to the USDC/ETH pool. UniswapV2 was deployed to the Ethereum mainnet on 18th May. The new feature includes ERC20/ERC20 pairs, price oracles, flash swaps, etc. Kyber Kyber has processed over $1 billion USD in fully on-chain trading volume. Over 500 million KNC has been burned. 2Key and Enjin integrated Kyber’s On-chain Liquidity Protocol. ParaFi Capital invested KNC to form a partnership with Kyber to prepare for the launch of KyberDAO. More than 10 popular cryptocurrencies including BUSD, COMP, BAND, and QNT are available on Kyber. Compound On Apr 16, the community began in charge of Compound governance, all modifications to the protocol were proposed and voted on by the community. After that, adding USDT as a borrowable asset became the first Compound governance proposal. May 28, Compound published the distribution plan about COMP, the governance token of Compound. The public distribution will feature 4.2M COMP (out of 10M) in total, distributing 0.5 COMP every block. Tokens would be allocated proportionally according to the interest of each market accrued. In late June, The total assets locked on Compound crossed over 1 billion USD. dYdX dYdX launched the BTC perpetual contract market in April. To keep the safety of the feature, dYdX announced a bug bounty program, examiners would get 50K USD reward if they found a critical bug. A month after the BTC perpetual launched, the 24H volume exceeded 14 million USD. On Jun 2, dYdX added spot markets, users could swap ETH, DAI, and USDC. dYdX updated the BTC perpetual in June to allow users to deposit USDT and convert it to collateral. tBTC tBTC is an open-source project supported by Keep, Summa, and the Cross-Chain Group. it allows people to use BTC to act on the Ethereum network. tBTC released on Ropsten Ethereum testnet in February and launched on Ethereum mainnet in May. Soon, they found a significant bug and paused the tBTC deposit. tBTC started its stakedrop on Jun 8. The stakedrop will last for months until all of the KEEP tokens allocated to the drop are exhausted. RenBTC RenVM is a decentralized custodian that mints and burns digital assets 1:1 on Ethereum as ERC20 tokens. RenVM Mainnet was launched at the end of May. That means people could use BTC, BCH and ZEC in ETH DeFi app. Ren partnered with Synthetix and Curve Finance to build a new incentivized liquidity pool that consisted of RenBTC, WBTC, sBTC. The pool was aiming to provide the lowest slippage for trades between sBTC, renBTC, and WBTC for traders. Futureswap Futureswap is a decentralized perpetual futures exchange that offers up to 20x leverage and liquidity providers can earn fees and interest. Futureswap launched its alpha version in April. The total trading volume reached 17M USD and total liquidity was up over 1.3M USD within 3 days since its alpha release. It was so popular that out of expectation and brought potential security risks of assets. So the Futureswap team decided to end the alpha release in advance.

Other

Enjin In Q2, games Grasshopper Farm, Cryptonom, and War of Ants announced to join the Enjin Multiverse. Enjin launched its Minecraft blockchain plugin: EnjinCraft in late May. EnjinCraft allows users to integrate, use, and trade blockchain gaming items in Minecraft server. Hunters of Rio (renamed MyMetaverse now) was a Minecraft blockchain server. It featured a WordPress plugin that allows users to buy blockchain assets and receive them to their Enjin wallets. Matic Network With Loom Network turned to provide services for enterprise customers, many blockchain games moved to Matic Network in Q2. Including 0xUniverse, BlockLords, Ethernal, and Blockchain Cuties. Matic released its mainnet in the end of May. On Jun 11, Matic partnered with Decentraland for the Mini-Games Creators Program. Creators could apply for 6,000 USD worth of MANA/MATIC per team. FLOW Flow held 3 times of Cadence Cup to ask developers to explore Cadence which is the smart contract programming language of Flow. In Apr, Flow added SDKs into the open-source community that gave developers basic tools and documentation to turn their ideas into reality. Blockchain games CryptoKitties and Chainmonsters have announced that they would launch on Flow blockchain in May.
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