Report: Ethereum active users doubled to over 1 million in Q2 2020

This article is from Decrypt, original author: Alexander Behrens

Odaily Planet Daily Translator | Nian Yin Si Tang

summary:

• Dapp.com’s 2020 Q2 Dapp Market Report shows that Ethereum users have doubled compared to the first quarter;

• From early April to late June, heavy trading activity on Compound pushed Ethereum DeFi transaction volume to over $10 billion.

• Fewer new Dapps launched means more work is performed on existing Dapps.

The second quarter of 2020 could be a turning point for decentralized applications (Dapps) on Ethereum.

According to Dapp.com’s 2020 Q2 Dapp Market Report, the number of active users of Ethereum-based Dapps doubled in one quarter, totaling more than 1 million.

DeFi applications have driven this growth, accounting for $5.7 billion in transactions in June, accounting for more than 97% of Ethereum blockchain activity. This report shows how important Ethereum is to the success of DeFi and how dominant DeFi has become on Ethereum in recent months.

Compound’s governance token COMP, distributed in June, helped drive DeFi growth in the second quarter: total DeFi transaction volume more than doubled from May, bringing Ethereum’s total DeFi transaction volume for the entire quarter to more than $10.3 billion. Ethereum’s two closest competitors in the DeFi space, EOS and TRON, had quarterly sales of $1.89 billion and $260 million, respectively.

Across all blockchains, DeFi 24-hour transaction volume reached an all-time high on June 21, exceeding $600 million.

Dapp.com calculates Dapp active users as the cumulative total of all users who interacted with Dapps throughout the quarter. According to the data it provides, active Dapp users on Ethereum grew from about 637,000 in the first quarter to more than 1.25 million in the second quarter. Daily active DeFi users (a category of wallet addresses that frequently interact with Ethereum-based DeFi products) also grew from less than 7,700 in the first quarter to more than 11,200 in the second quarter.

The report also states that BAT, the native token of the Brave browser, was the most used token in DeFi in the second quarter of 2020. BAT’s trading volume in DeFi reached $931 million, $300 million more than Ethereum. Jon Jordan, PR director at DappRadar, said the token’s overnight popularity was due to its highest compound return rate, not due to any characteristics of BAT. In June alone, more than $500 million worth of BAT was borrowed through Compound, enough to make it the most traded digital asset in the DeFi space in the second quarter of 2020. In short, investors took advantage of “flaws” in the COMP distribution system to increase their returns.

These “gimmicks” led to a recent governance vote to adjust COMP allocations to incentivize more volume and liquidity toward tokens with broader use cases, like DAI and USDC.

Odaily Planet Daily Note: Compound community members recently submitted governance proposal 011, which aims to remove the weight of COMP borrowing interest rate in influencing COMP distribution and reduce the risk of griefing. The proposal has now been officially implemented.

In the second quarter, Ethereum released 45 new Dapps, followed by its closest competitor TRON with 33. The data shows that developers may be spending more time on existing Dapps rather than launching new ones - only 99 new applications were released across all blockchains in the second quarter of this year, compared to 135 in the first quarter of 2020.

In addition to DeFi, Ethereum also performed well in the second quarter. Compared with competing protocols such as TRON and EOS, its users and daily transactions have increased significantly. As the growth and momentum of Ethereum-based DeFi continues to rise, the possibility of a challenger that can replace the current DeFi "darling" status becomes increasingly slim.