DApps Need Time
Last week, Ethereum World News reported that decentralized applications (DApp) were seeing minimal use. More specifically, according to research done by LongHash, a mere 180 out of 1812 blockchain applications on Ethereum saw associated ERC-20 token transactions on February first. Citing the same data set, the crypto asset research unit divulged that 13% of the utilized applications had more than 100,000 transactions in the past 24 hours, while 19% had somewhere between 10,000 and 100,000 transactions.
While these numbers aren’t measly by any means, critics argue that there’s a way to go. In response to a similar set of statistics compiled by Kevin Rooke, Saifedean Ammous, the world-renowned author of “The Bitcoin Standard,” questioned the value of decentralized applications, noting that from a brief glance, he can tell that centralizing most DApps would be logical. Ammous was adamant that even for gambling applications, such as Ethereum Dice and TronBET, it wouldn’t be nonsensical to use centralized hashing systems for RNG.
No Coiners: DApps have no good use cases and developers are making things that don’t matter.
2008: The most downloaded paid iPhone app of the year is a screensaver of koi fish swimming in a pond.
Give it time.
— Travis Kling (@Travis_Kling) February 17, 2019
The former portfolio manager at Steven Cohen’s Point72 did his best to outline the fact that the blockchain ecosystem, and DApp subsector by extension, is nascent by noting that in 2008, the most downloaded paid iPhone app was a koi fish swimming in a pond. Kling is obviously arguing that while DApp may not look like much now, their potential to revolutionize many of society’s facet is there, albeit hard to spot.
Kling’s recent hopeful comment comes days after he warned of the state of the legacy market. He recently stated that Bitcoin is a perfect hedge against “fiscal and monetary policy irresponsibility.” He stated that the monumental rise of employed quantitative easing (QE) strategies is “how you would write the script” for the adoption of cryptocurrencies, especially ones that tout a decentralized nature.
MakerDAO Flexes On Peers Amid Crypto Winter
While the so-called “DApp Revolution” is likely years away, one application has seen monumental growth amid what can only be deemed as “crypto winter.”
Over recent months, MakerDAO, a project that is centered around blockchain-based loans and the Dai stablecoin, has embarked on a quiet rise to fame. Crypto researcher Kevin Rooke noted that over two million Ether is held in MakerDAO’s decentralized finance smart contract. With there being 104 million currently in circulation, Maker’s operations have occupied 2% of the cryptocurrency. LongHash also explained that there are now 7,300 addresses (and growing by 20% monthly) actively using Dai.
This stellar fundamental performance has allowed MKR, the native token of the decentralized finance ecosystem, to surge in recent weeks. In fact, the ERC-20 token is up 37% since the start of February, as Bitcoin and other leading assets have stumbled over their own two feet. MKR is currently valued at $532.85 and has posted a 4.3% gain in the past 24 hours, much like Ethereum.
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