The popularity of DeFi dApps has exploded this year with 30 times more applications launched in 2019 compared to 2020.
According to DappRadar, the top 10 daApps represent 87% of Ethereum transaction volume.
Decentralized applications and decentralized finance are made possible through the use of distributed ledger technology
According to a report from DappRadar.com, the popularity of decentralized applications has exploded this year.
The new report on Decentralized Applications , or dApps , features exciting news about Ethereum and its decentralized applications. According to the report, titled „2020 Dapp Industry Report“, decentralized applications have exploded in popularity. This report indicates that in 2020, „the 10 best DeFi dapps are responsible for 87% of Ethereum transaction volumes, or $ 223 billion in 2020“.
In addition to this staggering amount, Bitcoin Era scam goes on to show users that „95% of the growth in transaction volume belongs to Ethereum Dapps“. The report states that DeFi has driven decentralized application growth in 2020. DeFi is now the „dominant industry in terms of key metrics such as TVL (Total Locked Value), AUW and volume.“
Dapps and DeFi continue to grow
This year bodes well for Dapps and DeFi. At the start of the year, DeFi Dapps were less than $ 1 billion in total locked-in value. That number grew to $ 16.5 billion in less than 12 months. Prior to 2020, there were few usable decentralized financing applications. Most of the latter were very promising, but only a small base used them. This has changed as decentralized lending platforms like Maker, Compound, and Aave, and decentralized exchanges like Uniswap, have gained traction.
Now, almost a year after DeFi captured mainstream attention , the whole landscape behind dApps looks different. Compared to DapRadar’s 2020 Industry Snapshot, the number of new dApps has skyrocketed. In 2019, only eight new dApps emerged across the blockchain ecosystem. In 2020, the projects created 238 DeFi dApps. Of these, 106 exist on the Ethereum network . Interestingly, the percentage of dApps built on Ethereum hasn’t changed drastically (50% of dApps were on Etheruem in 2019 and 45% in 2020). However, the volume exploded. It has increased almost 30 times the amount year over year.
What are decentralized applications? What is decentralized finance?
Decentralization is one of the foundations of blockchain technology. Technology emphasizes distributed control of something (a network, application, etc.) versus single (centralized) control and decision-making by a single entity. With decentralization, users and stakeholders control the decision-making power of a network. Decentralized applications are applications without a single point of failure and control. Decentralized Finance includes a subset of dapps that allow users to perform financial transactions without using a centralized platform.
The growing popularity of DeFi Dapps follows ongoing financial and economic uncertainty around the world. In many cases, users also see that they can generate much higher returns by using these dApps rather than traditional financial apps.