DappRadar is the world’s leading Dapp data and aggregation site. Recently, it added an ERC20 token tracking for all Ethereum Dapps.
The company uncovered over $73 million in unaccounted 7-day volume and the actual volume increased from $27 million to over $100million. Annually, this sums up to $3.8 billion in unaccounted ETH Dapp volume. Ethereum Dapps account for over 60% of total Dapps and this brings ETH annual value to exceed $5billion.
This tracking system is unique to DappRadar and is live on their site. All ETH Dapps will now be ranked on the total volume of all ETH-based ERC20 tokens passing through their smart contracts. This feature is live for EOS and will be available in other protocols in the future.
Here is a chart to help you understand better the huge difference this makes.
Quoted from Skirmantas Januskas, CEO & Co-Founder of DappRadar, “This will greatly increase the transparency of value creation on the Ethereum blockchain, especially for decentralized exchanges that support the trading of ETH-based tokens and the fast-growing DeFi category.”
We are also pleased to have Ian Kane, Head of Communications of DappRadar, to provide us with more comments.
Q: What made you guys start doing token tracking for all tokens besides the native currencies on their own blockchain?
Ian: This update has always been on our roadmap for 2019. DappRadar wants to play an integral role in bringing the Dapp space the most accurate and reliable Dapp data. These product updates go toward that ambition. We also realized that perhaps the entire industry has made a presumption that current data tracking methods were accurate enough. Even analysts and reporters assume they were already viewing the most accurate data.
Previously only the volume of the native ETH cryptocurrency was tracked. Now, ETH Dapps will be ranked on the total volume of all ETH-based ERC20 tokens passing through their smart contracts. This greatly increases the transparency of value creation on the Ethereum blockchain. Especially for decentralized exchanges that support the trading of ETH-based tokens and the fast-growing DeFi category.
Q: DappRadar just uncovered $73 million/week of previously untracked Ethereum Dapp volume. What kind of effect do you think this will have on the overall industry and especially in DeFi?
Ian: De-Fi has been massively undervalued and Dapps operating on Ethereum are finally able to show true volumes. This allows users to make more informed decisions when considering de-fi products and services. What we are observing is quite staggering in that $39 million of the volume increase discovered in ERC20 tokens came from exchanges whilst a further $33 million came from de-fi. That’s $72 million of the uncovered $73 million coming from de-fi.
It is hard to say what the overall impact on the industry will be at this stage but what we do know is that the way Dapp data is used and presented has changed – and we are really proud to be leading that.
Q: With all this undiscovered volume now uncovered, does this mean that the growth we are having with Dapps is way bigger than imagined? Is this something to be happy about?
Ian: Yes and no. The data paints a much more interesting picture for de-fi moving forward, and we can see a clear trend that means de-fi has been badly undervalued for quite some time now. For Dapp games, on the other hand, we see something different as most running on Ethereum are utilizing the native token so we haven’t seen a marked increase in volume to get excited about.
The fact that over 70% of the $ volume of Etheum Dapps was previously unreported is a big deal. We feel like the Dapp space needs clarity, and we are working hard to provide that. It’s still early days, and we are still working with the data to clean it up further and provide even more insight but we definitely see this as something that industry analysts, Dapp developers and users should be happy about.
Q: The 7-day volume on Ethereum has now increased from $27 million to just over $100 million, does this mean we have actually been underestimating the capabilities of the Ethereum blockchain?
Ian: From assessing the 7-day data, we have $27m of ETH value and $73m of token value.
So the overall value of the Ethereum Dapp ecosystem has gone from $27m to $100m in that 7day period. Up to this point, everyone has been underestimating the value and capability of Ethereum. We think that the most interesting question is – by just how much.
We will be continuing to analyze the data and are excited to run analysis on current, against historical data, and across the individual protocols to see how the top blockchains are really performing.
Q: In the 7-day Dapp volume of ETH, the category “others” had accounted for over 40% of total ETH volume. Could you elaborate more on this category and why does it have so much volume?
Ian: Yes, it’s quite simple really. Currently, the ‘other’ category on DappRadar consists almost entirely of de-fi products and we are just in the process of adding more categories to the site to allow further, more accurate filtering by users. From our analysis, around 90% of the value of the ‘Other’ category is generated by DeFi Dapps. Notably MakerDAO, dYdX, and Fulcrum.
Q: Any other significant findings you would like to share with our readers?
Ian: An interesting discovery is that the top 10 Dapps on Ethereum are generating approx 95% of the total value of the Ethereum Dapp ecosystem. Overall, we will be conducting more in-depth research and working with the historical and current data across multiple blockchains to give a more accurate picture in the coming weeks and months. Protocol token tracking updates, alongside our commitment to clean data, will see us position ourselves as the leading Dapp data provider and we will, of course, be certain to share those findings with the awesome team at Altcoin Buzz.
Check out more data from DappRadar