Analysis of 30 million transactions, Ethereum revealed the low activity of DApp

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New data from the crypto-analytical company SFOX drew a somewhat gloomy picture of the current state of decentralized applications (DApp) of the Ethereum network.

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According to the data obtained as a result of the analysis of more than 30 million Ethereum transactions, ICO and exchange activity appeared in the top ten smart contracts of the network, and after that there are decentralized applications presented by games like CryptoKitties.

Analysts collected data show that, contrary to the promise of Ethereum create a "simple and powerful mechanism for smart contracts, which developers can use dApp for any purpose", the problems with the cost and scalability remain a serious problem for the actualization of this vision.

Ethereum: expectation and reality
At the height of the bullish market, the ether price (ETH) peaked at $1'374, driven mainly by speculative pressure, as well as expectations of Ethereum's promises to create a global computing platform based on smart contracts and the demand for decentralized applications.

For investors, the main value of Ethereum at that time was the ability to create utility tokens, presented by the network's smart contracts. These tokens, often used by blockchain projects, not only laid the Foundation for a new structure to execute transactions and transactions, but also gave developers the ability to create decentralized applications that, according to Ethereum's promises, would "revolutionize many existing centralized business models."

However, new data from SFOX show a very different picture of how things really happened. Using Jupyter Notebook to query the public Ethereum dataset hosted on BigQuery, SFOX reports that of the 10 Ethereum smart contracts by transaction volume, only one is represented by a decentralized application.



Nine out of ten presented contracts are devoted to centralized exchange activity, decentralized exchange activity and sales of tokens created on Ethereum. The only smart contract for dApp on the list is the popular game CryptoKitties, which creates tokens of the ERC-721 standard.

In other words, to date, the vast majority of Ethereum smart contract operations are still dedicated to trading and Ethereum-based tokens. Decentralized applications did not meet the expectations of investors, and it happened for a number of reasons.

In August, Ethereum and EOS had only eight decentralized applications with at least 300 active users per day. The lack of activity is mainly due to gas costs in Ethereum networks and scalability issues. In particular, Ethereum is known for the fact that transaction rates, including in decentralized applications, increase significantly during periods of network congestion, which adversely affects the use of applications.

Link to the source of information (Russian) - https://altstake.io/news/analiz-30-mlntranzakciyethereum-vyyavil-nizkuyu-aktivnostydapp