02 Apr 2019 #Ethereum
The dApp war has been heating up between Ethereum, EOS, and Tron. Market analysts have been taking a closer look at what all these blockchain technologies offer within their ecosystems. Analysis of data taken from DappRadar, a ranked list of blockchain dapps, has shown that the most popular dapps on EOS and Tron are gambling and other, similar 'high-risk' platforms.
The reports by market analysts show that 72% of all dapps on those two blockchains are either gambling dapps or so-called 'high-risk' dapps categories. These categories come with warnings for uninitiated or new users of the platforms. Looking at Ethereum, it is a completely different scenario. Only 8% of the dapps which use the Ethereum blockchain are in those two categories.
The main reason for this divergence in direction is rooted squarely in the way their consensus algorithms work. Ethereum relies on Proof-of-Work, an algorithm that presupposes a fee for miners. EOS and Tron, on the other hand, allow zero-fee transactions to be performed.
This makes EOS and Tron perfect for developers of dapps that are based on some type of repetitive activity. Gambling being an extremely repetitive, albeit addictive, exercise has led to developers who are interested in making those types of dapps focus on the blockchain that allow zero-fee transactions to take place, as opposed to Ethereum which does not.
The market looks completely different to just a year ago. At the time, Ethereum was enjoying complete dominance over the dapp market. Today, however, it only hosts about 28% of all dapps available in the market. Games based on the Ethereum blockchain account for 52% of this number. However, they are far from reaching the popularity of Crypto Kitties. Crypto Kitties enjoyed enormous success during the peak of the crypto market a few years ago. Now, a few years later, Crypto Kitties have held onto their value far better than many cryptocurrencies have.
Bloomberg reports that Ethereum was always going to be losing market share despite being an early entrant into the field of blockchain based apps. In fact, when it debuted in 2015, Ethereum was seen as the true successor to Bitcoin due to the wide variety of options it had on offer.
However, other projects that promised more have come to the table in a fast and efficient manner and have used the wake created by the entrance of Ethereum to position themselves in a much smarter manner.
Stellar and EOS coins are being used by startups to raise funds, where before the go-to coin and blockchain was Ethereum. This is despite ongoing regulatory worries in the industry. Gamers now have a range of coins they can buy to pay for in-game items. This has struck a severe blow to Ethereum from the demand side, and it is reflected in its price which has settled in lower bound during the six to nine months where new entrants have quickly come up to take its place.
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