It’s both a good as well as a bad day for Ethereum today. Good because a positive finding has been reported about this 2nd largest cryptocurrency network in a latest market report by crypto analytics firm Diar, and bad because an equally concerning finding has also been revealed in the same report. The report has revealed that while Ethereum has been observing record high transaction volumes on its blockchain in the recent days, the number of new dApps coming over Ethereum has gone considerably low. In short, while some of the existing dApps are generating record high on-chain Ethereum transactions, the future prospects of growth are not looking very promising as of now. Let’s explore the report in more details now.
If one looks at the transaction volume of Ethereum for the month of April they will learn that last month dApps broke all previous records of transaction volume. 776,000 ETH tokens were transacted last month, which marks a growth of 4 straight months in the transaction volume of Ethereum, which is quite impressive for any blockchain. Especially when one considers the competition that Ethereum is getting from newer blockchains (i.e. TRON and Binance Chain), this sustained growth trend looks even more impressive.
Diar also writes in its report that this has been the longest growth period for transaction volume for Ethereum dApps. The value of tokens transacted was above $132 million, which is an eight-month high.
At the same time, however, the number of new dApps being deployed on Ethereum is low. That number is trading around the levels of 2017, with only 88 new dApps being deployed in the month of April. Diar report said in this regard:
“Last month wraps up a continuous declining trend in deployment since September 2018, bar a flurry of new DApps that went on-chain at the end of last year, which marked the peak of development to date.”
Diar is a reliable cryptocurrency analytics platform, so its reports often tend to be reliable. If you read Crypto-News India regularly you might already have read at least some articles based on the reports of Diar earlier as well.
The market, however, seems to have taken only positive aspects of this report into account, as Ethereum is trading higher by more than 10% today. Let’s see where it goes from this point!